Retail investors who hold 47% of T&S Communications Co.,Ltd. (SZSE:300570) gained 12%, insiders profited as well

Key Insights

• The considerable ownership by retail investors in T&S CommunicationsLtd indicates that they collectively have a greater say in management and business strategy
• The top 19 shareholders own 50% of the company
• 25% of T&S CommunicationsLtd is held by insiders

Every investor in T&S Communications Co.,Ltd. (SZSE:300570) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that reaped the most benefits after last week’s 12% price gain, insiders also received a 25% cut.

In the chart below, we zoom in on the different ownership groups of T&S CommunicationsLtd.

Check out our latest analysis for T&S CommunicationsLtd

What Does The Institutional Ownership Tell Us About T&S CommunicationsLtd?

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.

T&S CommunicationsLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 T&S CommunicationsLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in T&S CommunicationsLtd. Huayang International Development Limited is currently the largest shareholder, with 10% of shares outstanding. With 9.1% and 6.9% of the shares outstanding respectively, Zhi Min Zhang and Shenzhen Aisidi Co., Ltd. are the second and third largest shareholders. Additionally, the company's CEO Yi Ming Zhang directly holds 4.5% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of T&S CommunicationsLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of T&S Communications Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥2.2b stake in this CN¥8.7b business. It is good to see this level of investment. 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 T&S CommunicationsLtd. 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 10%, of the shares on issue. 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.

Public Company Ownership

We can see that public companies hold 6.9% of the T&S CommunicationsLtd shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand T&S CommunicationsLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with T&S CommunicationsLtd , and understanding them should be part of your investment process.

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.