Private companies among Tangshan Sanyou Chemical Industries Co.,Ltd's (SHSE:600409) largest shareholders, saw gain in holdings value after stock jumped 5.7% last week

Key Insights

• Significant control over Tangshan Sanyou Chemical IndustriesLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 6 shareholders
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Tangshan Sanyou Chemical Industries Co.,Ltd (SHSE:600409) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by CN¥599m last week.

Let's delve deeper into each type of owner of Tangshan Sanyou Chemical IndustriesLtd, beginning with the chart below.

View our latest analysis for Tangshan Sanyou Chemical IndustriesLtd

What Does The Institutional Ownership Tell Us About Tangshan Sanyou Chemical IndustriesLtd?

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.

As you can see, institutional investors have a fair amount of stake in Tangshan Sanyou Chemical IndustriesLtd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Tangshan Sanyou Chemical IndustriesLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Tangshan Sanyou Chemical IndustriesLtd is not owned by hedge funds. The company's largest shareholder is Tangshan Sanyou Group Co., Ltd., with ownership of 45%. National Council for Social Security Fund is the second largest shareholder owning 2.0% of common stock, and ICBC Credit Suisse Asset Management Co., Ltd. holds about 1.4% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Tangshan Sanyou Chemical IndustriesLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tangshan Sanyou Chemical IndustriesLtd. 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

We can see that Private Companies own 46%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Tangshan Sanyou Chemical IndustriesLtd that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.