Insiders were the key beneficiaries as Chengdu Fusen Noble-House Industrial Co.,Ltd.'s (SZSE:002818) market cap rises to CN¥10b

Key Insights

• Insiders appear to have a vested interest in Chengdu Fusen Noble-House IndustrialLtd's growth, as seen by their sizeable ownership
• The top 2 shareholders own 71% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Chengdu Fusen Noble-House Industrial Co.,Ltd. (SZSE:002818), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 80% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 5.0% gain.

Let's delve deeper into each type of owner of Chengdu Fusen Noble-House IndustrialLtd, beginning with the chart below.

Check out our latest analysis for Chengdu Fusen Noble-House IndustrialLtd

What Does The Institutional Ownership Tell Us About Chengdu Fusen Noble-House IndustrialLtd?

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.

Since institutions own only a small portion of Chengdu Fusen Noble-House IndustrialLtd, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Chengdu Fusen Noble-House IndustrialLtd. Looking at our data, we can see that the largest shareholder is Bing Liu with 44% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 28% and 8.7%, of the shares outstanding, respectively. Yi Liu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 2 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Chengdu Fusen Noble-House IndustrialLtd

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.

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.

It seems that insiders own more than half the Chengdu Fusen Noble-House Industrial Co.,Ltd. stock. This gives them a lot of power. That means insiders have a very meaningful CN¥8.2b stake in this CN¥10b business. 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

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chengdu Fusen Noble-House IndustrialLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Take risks for example - Chengdu Fusen Noble-House IndustrialLtd has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.