China Resources Boya Bio-pharmaceutical Group Co.,Ltd's (SZSE:300294) market cap dropped CN¥681m last week; Individual investors bore the brunt

Key Insights

• Significant control over China Resources Boya Bio-pharmaceutical GroupLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 6 shareholders own 52% of the company
• Institutional ownership in China Resources Boya Bio-pharmaceutical GroupLtd is 17%

If you want to know who really controls China Resources Boya Bio-pharmaceutical Group Co.,Ltd (SZSE:300294), 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 investors with 38% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 3.9% decline in share price, individual investors suffered the most losses.

Let's delve deeper into each type of owner of China Resources Boya Bio-pharmaceutical GroupLtd, beginning with the chart below.

See our latest analysis for China Resources Boya Bio-pharmaceutical GroupLtd

What Does The Institutional Ownership Tell Us About China Resources Boya Bio-pharmaceutical GroupLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in China Resources Boya Bio-pharmaceutical GroupLtd. 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 China Resources Boya Bio-pharmaceutical GroupLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

China Resources Boya Bio-pharmaceutical GroupLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is China Resources Company Limited with 29% of shares outstanding. ShenZhen GTJA Investment Group Co., Ltd is the second largest shareholder owning 11% of common stock, and Jianxin Xu holds about 3.7% of the company stock.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 China Resources Boya Bio-pharmaceutical GroupLtd

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.

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.

We can see that insiders own shares in China Resources Boya Bio-pharmaceutical Group Co.,Ltd. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CN¥739m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over China Resources Boya Bio-pharmaceutical GroupLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 11%, private equity firms could influence the China Resources Boya Bio-pharmaceutical GroupLtd board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 29%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Be aware that China Resources Boya Bio-pharmaceutical GroupLtd is showing 3 warning signs in our investment analysis , 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.