Owning 42% in Guangzhou Tinci Materials Technology Co., Ltd. (SZSE:002709) means that insiders are heavily invested in the company's future

Key Insights

• Insiders appear to have a vested interest in Guangzhou Tinci Materials Technology's growth, as seen by their sizeable ownership
• The top 11 shareholders own 50% of the company
• 17% of Guangzhou Tinci Materials Technology is held by Institutions

If you want to know who really controls Guangzhou Tinci Materials Technology Co., Ltd. (SZSE:002709), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's delve deeper into each type of owner of Guangzhou Tinci Materials Technology, beginning with the chart below.

Check out our latest analysis for Guangzhou Tinci Materials Technology

What Does The Institutional Ownership Tell Us About Guangzhou Tinci Materials Technology?

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.

Guangzhou Tinci Materials Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Guangzhou Tinci Materials Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Guangzhou Tinci Materials Technology. With a 37% stake, CEO Jinfu Xu is the largest shareholder. With 1.8% and 1.7% of the shares outstanding respectively, China Asset Management Co. Ltd. and Fei Lin are the second and third largest shareholders.

After doing some more digging, we found that the top 11 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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

Insider Ownership Of Guangzhou Tinci Materials Technology

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

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Guangzhou Tinci Materials Technology Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥16b stake in this CN¥39b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangzhou Tinci Materials Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Guangzhou Tinci Materials Technology (of which 1 is concerning!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.