Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited's (SHSE:600329) top owners are individual investors with 47% stake, while 43% is held by private companies

Key Insights

• Significant control over Tianjin Pharmaceutical Da Ren Tang Group by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 14 investors have a majority stake in the company with 50% ownership
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited (SHSE:600329) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 47% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And private companies on the other hand have a 43% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Tianjin Pharmaceutical Da Ren Tang Group.

See our latest analysis for Tianjin Pharmaceutical Da Ren Tang Group

What Does The Institutional Ownership Tell Us About Tianjin Pharmaceutical Da Ren Tang Group?

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.

Tianjin Pharmaceutical Da Ren Tang Group 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. 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 Tianjin Pharmaceutical Da Ren Tang Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Tianjin Pharmaceutical Da Ren Tang Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Tianjin Kingyork Group Co., Ltd. with 43% of shares outstanding. First Seafront Fund Management Co., Ltd is the second largest shareholder owning 0.9% of common stock, and Swee Teck Tan holds about 0.9% of the company stock.

After doing some more digging, we found that the top 14 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 Tianjin Pharmaceutical Da Ren Tang Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own some shares in Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited. This is a big company, so it is good to see this level of alignment. Insiders own CN¥513m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tianjin Pharmaceutical Da Ren Tang Group. 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 43%, of the company's shares. 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 Tianjin Pharmaceutical Da Ren Tang Group better, we need to consider many other factors. For instance, we've identified 1 warning sign for Tianjin Pharmaceutical Da Ren Tang Group 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.