With a 55% stake, Sunresin New Materials Co.,Ltd (SZSE:300487) insiders have a lot riding on the company

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
• Institutions own 21% of Sunresin New MaterialsLtd

To get a sense of who is truly in control of Sunresin New Materials Co.,Ltd (SZSE:300487), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Sunresin New MaterialsLtd regarding the company's future would be crucial to them.

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?

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 Sunresin New MaterialsLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Sunresin New MaterialsLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Sunresin New MaterialsLtd. Looking at our data, we can see that the largest shareholder is the CEO Xiaokang Kou with 25% of shares outstanding. 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.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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

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.

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.

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¥24b, that means insiders have a whopping CN¥13b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public-- including retail investors -- own 24% 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. Be aware that Sunresin New MaterialsLtd is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

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.