Private companies among Zhejiang Realsun Chemical Co.,Ltd.'s (SZSE:301212) largest shareholders, saw gain in holdings value after stock jumped 13% last week

Key Insights

• Zhejiang Realsun ChemicalLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• Realsun Chemical Group Co., Ltd. owns 53% of the company
• Insiders own 18% of Zhejiang Realsun ChemicalLtd

If you want to know who really controls Zhejiang Realsun Chemical Co.,Ltd. (SZSE:301212), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 57% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥2.3b market cap following a 13% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Zhejiang Realsun ChemicalLtd.

View our latest analysis for Zhejiang Realsun ChemicalLtd

What Does The Lack Of Institutional Ownership Tell Us About Zhejiang Realsun ChemicalLtd?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Zhejiang Realsun ChemicalLtd, for yourself, below.

We note that hedge funds don't have a meaningful investment in Zhejiang Realsun ChemicalLtd. Realsun Chemical Group Co., Ltd. is currently the largest shareholder, 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. For context, the second largest shareholder holds about 9.3% of the shares outstanding, followed by an ownership of 8.3% by the third-largest shareholder. Kuai Yu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Zhejiang Realsun ChemicalLtd

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 information suggests that insiders maintain a significant holding in Zhejiang Realsun Chemical Co.,Ltd.. Insiders own CN¥415m worth of shares in the CN¥2.3b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 25% 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.

Private Company Ownership

We can see that Private Companies own 57%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Realsun ChemicalLtd better, we need to consider many other factors. Be aware that Zhejiang Realsun ChemicalLtd is showing 3 warning signs in our investment analysis , and 2 of those are potentially serious...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.