Individual investors invested in Techshine Electronics Co.,Ltd. (SZSE:301379) up 10% last week, insiders too were rewarded

Key Insights

• The considerable ownership by individual investors in Techshine ElectronicsLtd indicates that they collectively have a greater say in management and business strategy
• 49% of the business is held by the top 25 shareholders
• Insider ownership in Techshine ElectronicsLtd is 43%

If you want to know who really controls Techshine Electronics Co.,Ltd. (SZSE:301379), then you'll have to look at the makeup of its share registry. With 51% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week’s CN¥278m market cap gain, insiders too had a 43% share in those profits.

Let's delve deeper into each type of owner of Techshine ElectronicsLtd, beginning with the chart below.

Check out our latest analysis for Techshine ElectronicsLtd

What Does The Institutional Ownership Tell Us About Techshine ElectronicsLtd?

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.

We can see that Techshine ElectronicsLtd does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Techshine ElectronicsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Techshine ElectronicsLtd. The company's CEO Siwei Wang is the largest shareholder with 15% of shares outstanding. With 9.2% and 6.8% of the shares outstanding respectively, Xiaoyun Fan and Sizhen Wang are the second and third largest shareholders. Interestingly, the third-largest shareholder, Sizhen Wang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Techshine ElectronicsLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of Techshine Electronics Co.,Ltd.. Insiders have a CN¥1.3b stake in this CN¥3.0b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 51% of Techshine ElectronicsLtd shares. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Techshine ElectronicsLtd better, we need to consider many other factors. Be aware that Techshine ElectronicsLtd is showing 2 warning signs in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.