Epoxy Base Electronic Material Corporation Limited's (SHSE:603002) largest shareholders are private companies who were rewarded as market cap surged CN¥601m last week

Key Insights

• Epoxy Base Electronic Material's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 2 investors have a majority stake in the company with 50% ownership
• Institutions own 10% of Epoxy Base Electronic Material

A look at the shareholders of Epoxy Base Electronic Material Corporation Limited (SHSE:603002) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 51% 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, private companies collectively scored the highest last week as the company hit CN¥6.7b market cap following a 9.8% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Epoxy Base Electronic Material.

Check out our latest analysis for Epoxy Base Electronic Material

What Does The Institutional Ownership Tell Us About Epoxy Base Electronic Material?

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 Epoxy Base Electronic Material. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Epoxy Base Electronic Material's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Epoxy Base Electronic Material. Looking at our data, we can see that the largest shareholder is Grace T.H.W. Holding Limited with 45% of shares outstanding. Newfame Investment Limited is the second largest shareholder owning 5.3% of common stock, and Guangdong Hengjian International Investment Co., Ltd. holds about 3.8% of the company stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Epoxy Base Electronic Material

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Shareholders would probably be interested to learn that insiders own shares in Epoxy Base Electronic Material Corporation Limited. As individuals, the insiders collectively own CN¥221m worth of the CN¥6.7b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 51%, of the Epoxy Base Electronic Material stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 5 warning signs for Epoxy Base Electronic Material (2 shouldn't be ignored) 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.