Public companies are Sinoma Science & Technology Co.,Ltd.'s (SZSE:002080) biggest owners and were hit after market cap dropped CN¥1.3b

Key Insights

• Significant control over Sinoma Science & TechnologyLtd by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is China National Building Material Company Limited with a 60% stake
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Sinoma Science & Technology Co.,Ltd. (SZSE:002080) can tell us which group is most powerful. With 60% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies as a group endured the highest losses last week after market cap fell by CN¥1.3b.

Let's take a closer look to see what the different types of shareholders can tell us about Sinoma Science & TechnologyLtd.

View our latest analysis for Sinoma Science & TechnologyLtd

What Does The Institutional Ownership Tell Us About Sinoma Science & TechnologyLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Sinoma Science & TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sinoma Science & TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Sinoma Science & TechnologyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is China National Building Material Company Limited with 60% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.1% and 0.9% of the shares outstanding respectively, National Council for Social Security Fund and China Asset Management Co. Ltd. are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Sinoma Science & TechnologyLtd

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.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Sinoma Science & TechnologyLtd. 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.

Public Company Ownership

It appears to us that public companies own 60% of Sinoma Science & TechnologyLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sinoma Science & TechnologyLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for Sinoma Science & TechnologyLtd you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com