With 64% ownership, Sunresin New Materials Co.,Ltd (SZSE:300487) insiders have a lot at stake

Key Insights

• Significant insider control over Sunresin New MaterialsLtd implies vested interests in company growth
• A total of 3 investors have a majority stake in the company with 53% ownership
• Institutional ownership in Sunresin New MaterialsLtd is 16%

A look at the shareholders of Sunresin New Materials Co.,Ltd (SZSE:300487) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 64% 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 Sunresin New MaterialsLtd, beginning with the chart below.

View our latest analysis for Sunresin New MaterialsLtd

What Does The Institutional Ownership Tell Us About Sunresin New MaterialsLtd?

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 Sunresin New MaterialsLtd 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. 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 Sunresin New MaterialsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Sunresin New MaterialsLtd is not owned by hedge funds. With a 25% stake, CEO Xiaokang Kou is the largest shareholder. Xiaojun Tian is the second largest shareholder owning 15% of common stock, and Yuejing Gao holds about 13% of the company stock. Note that two of the top three shareholders are also Senior Key Executive and Chairman of the Board, respectively, once again pointing to significant ownership by company insiders.

To make our study more interesting, we found that the top 3 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 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 Sunresin New MaterialsLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders own more than half of Sunresin New Materials Co.,Ltd. This gives them effective control of the company. Given it has a market cap of CN¥21b, that means insiders have a whopping CN¥14b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sunresin New MaterialsLtd better, we need to consider many other factors. For instance, we've identified 1 warning sign for Sunresin New MaterialsLtd 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.