Union Semiconductor (Hefei) Co., Ltd.'s (SHSE:688403) largest shareholders are private companies who were rewarded as market cap surged CN¥528m last week

Key Insights

• The considerable ownership by private companies in Union Semiconductor (Hefei) indicates that they collectively have a greater say in management and business strategy
• The top 13 shareholders own 51% of the company
• Institutions own 17% of Union Semiconductor (Hefei)

If you want to know who really controls Union Semiconductor (Hefei) Co., Ltd. (SHSE:688403), 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 42% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit CN¥7.0b market cap following a 8.1% gain in the stock.

Let's delve deeper into each type of owner of Union Semiconductor (Hefei), beginning with the chart below.

Check out our latest analysis for Union Semiconductor (Hefei)

What Does The Institutional Ownership Tell Us About Union Semiconductor (Hefei)?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Union Semiconductor (Hefei) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Union Semiconductor (Hefei)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Union Semiconductor (Hefei). Our data shows that Yangzhou Xinruilian Investment Partnership Enterprise (Limited Partnership) is the largest shareholder with 21% of shares outstanding. With 4.6% and 4.2% of the shares outstanding respectively, Converge Achievement Investment Holdings Limited and Jiaxing Gaohe Equity Investment Fund Partnership Enterprise (Limited Partnership) are the second and third largest shareholders. Furthermore, CEO Ruijun Zheng is the owner of 2.9% of the company's shares.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Union Semiconductor (Hefei)

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.

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 report that insiders do own shares in Union Semiconductor (Hefei) Co., Ltd.. As individuals, the insiders collectively own CN¥202m worth of the CN¥7.0b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in Union Semiconductor (Hefei). 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 Company Ownership

We can see that Private Companies own 42%, of the shares on issue. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Union Semiconductor (Hefei) (of which 1 is a bit concerning!) you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.