Hangzhou Oxygen Plant Group Co.,Ltd.'s (SZSE:002430) market cap dropped CN¥2.4b last week; Private companies bore the brunt

Key Insights

• The considerable ownership by private companies in Hangzhou Oxygen Plant GroupLtd indicates that they collectively have a greater say in management and business strategy
• Hangzhou Hangyang Holdings Co., Ltd. owns 53% of the company
• 18% of Hangzhou Oxygen Plant GroupLtd is held by Institutions

A look at the shareholders of Hangzhou Oxygen Plant Group Co.,Ltd. (SZSE:002430) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies as a group endured the highest losses last week after market cap fell by CN¥2.4b.

Let's delve deeper into each type of owner of Hangzhou Oxygen Plant GroupLtd, beginning with the chart below.

See our latest analysis for Hangzhou Oxygen Plant GroupLtd

What Does The Institutional Ownership Tell Us About Hangzhou Oxygen Plant GroupLtd?

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.

We can see that Hangzhou Oxygen Plant GroupLtd 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 Hangzhou Oxygen Plant GroupLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hangzhou Oxygen Plant GroupLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hangzhou Hangyang Holdings Co., Ltd. with 53% 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 4.9% and 4.8% of the shares outstanding respectively, China Huarong Asset Management Co., Ltd., Asset Management Arm and National Council for Social Security Fund 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Hangzhou Oxygen Plant GroupLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our data suggests that insiders own under 1% of Hangzhou Oxygen Plant Group Co.,Ltd. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥31m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hangzhou Oxygen Plant GroupLtd. 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

Our data indicates that Private Companies hold 53%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Hangzhou Oxygen Plant GroupLtd , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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