Insiders with their considerable ownership were the key benefactors as Jiangsu Kangliyuan Sports Tech. Co., Ltd. (SZSE:301287) touches CN¥2.0b market cap

Key Insights

• Significant insider control over Jiangsu Kangliyuan Sports Tech implies vested interests in company growth
• Dunjian Heng owns 74% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Jiangsu Kangliyuan Sports Tech. Co., Ltd. (SZSE:301287) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 75% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 29% gain.

Let's delve deeper into each type of owner of Jiangsu Kangliyuan Sports Tech, beginning with the chart below.

See our latest analysis for Jiangsu Kangliyuan Sports Tech

What Does The Institutional Ownership Tell Us About Jiangsu Kangliyuan Sports Tech?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Less than 5% of Jiangsu Kangliyuan Sports Tech is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.

We note that hedge funds don't have a meaningful investment in Jiangsu Kangliyuan Sports Tech. Dunjian Heng is currently the company's largest shareholder with 74% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Beijing Xiyue Private Fund Management Co., Ltd. is the second largest shareholder owning 0.8% of common stock, and Ruijing Xu holds about 0.7% of the company stock. Ruijing Xu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Jiangsu Kangliyuan Sports Tech

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Jiangsu Kangliyuan Sports Tech. Co., Ltd. stock. This gives them a lot of power. So they have a CN¥1.5b stake in this CN¥2.0b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Jiangsu Kangliyuan Sports Tech. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Jiangsu Kangliyuan Sports Tech that you should be aware of.

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.