Public companies own 30% of TCL Zhonghuan Renewable Energy Technology Co.,Ltd. (SZSE:002129) shares but individual investors control 56% of the company

Key Insights

• The considerable ownership by individual investors in TCL Zhonghuan Renewable Energy TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 43% of the company
• Institutions own 13% of TCL Zhonghuan Renewable Energy TechnologyLtd

A look at the shareholders of TCL Zhonghuan Renewable Energy Technology Co.,Ltd. (SZSE:002129) can tell us which group is most powerful. With 56% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Public companies, on the other hand, account for 30% of the company's stockholders.

Let's delve deeper into each type of owner of TCL Zhonghuan Renewable Energy TechnologyLtd, beginning with the chart below.

Check out our latest analysis for TCL Zhonghuan Renewable Energy TechnologyLtd

What Does The Institutional Ownership Tell Us About TCL Zhonghuan Renewable Energy TechnologyLtd?

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.

As you can see, institutional investors have a fair amount of stake in TCL Zhonghuan Renewable Energy TechnologyLtd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 TCL Zhonghuan Renewable Energy TechnologyLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in TCL Zhonghuan Renewable Energy TechnologyLtd. TCL Technology Group Corporation is currently the largest shareholder, with 30% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.3% and 1.0%, of the shares outstanding, respectively.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of TCL Zhonghuan Renewable Energy TechnologyLtd

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 data suggests that insiders own under 1% of TCL Zhonghuan Renewable Energy Technology Co.,Ltd. in their own names. Keep in mind that it's a big company, and the insiders own CN¥36m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 56% of TCL Zhonghuan Renewable Energy TechnologyLtd. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Public Company Ownership

Public companies currently own 30% of TCL Zhonghuan Renewable Energy TechnologyLtd stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Case in point: We've spotted 2 warning signs for TCL Zhonghuan Renewable Energy TechnologyLtd you should be aware of.

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.