Fsilon Furnishing and Construction Materials Corporation's (SHSE:605318) biggest owners are private companies who got richer after stock soared 11% last week

Key Insights

• Significant control over Fsilon Furnishing and Construction Materials by private companies implies that the general public has more power to influence management and governance-related decisions
• Fsilon Investment Holding Co., Ltd. owns 56% of the company
• 14% of Fsilon Furnishing and Construction Materials is held by insiders

A look at the shareholders of Fsilon Furnishing and Construction Materials Corporation (SHSE:605318) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by CN¥276m last week.

Let's delve deeper into each type of owner of Fsilon Furnishing and Construction Materials, beginning with the chart below.

Check out our latest analysis for Fsilon Furnishing and Construction Materials

What Does The Institutional Ownership Tell Us About Fsilon Furnishing and Construction Materials?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Institutions have a very small stake in Fsilon Furnishing and Construction Materials. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Fsilon Furnishing and Construction Materials. Our data shows that Fsilon Investment Holding Co., Ltd. is the largest shareholder with 56% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Zhenghua Shen is the second largest shareholder owning 9.7% of common stock, and Xuejuan Wang holds about 4.3% of the company stock. Note that the second and third-largest shareholders are also Chief Executive Officer and Member of the Board of Directors, respectively, meaning that the company's top shareholders are insiders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Fsilon Furnishing and Construction Materials

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Fsilon Furnishing and Construction Materials Corporation. It has a market capitalization of just CN¥2.8b, and insiders have CN¥387m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Fsilon Furnishing and Construction Materials. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 57%, of the Fsilon Furnishing and Construction Materials stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fsilon Furnishing and Construction Materials better, we need to consider many other factors. Take risks for example - Fsilon Furnishing and Construction Materials has 3 warning signs (and 2 which are a bit concerning) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.