Stock Analysis

Ruifeng Power Group Company Limited's (HKG:2025) largest shareholders are private companies who were rewarded as market cap surged HK$152m last week

SEHK:2025
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Key Insights

  • Ruifeng Power Group's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • Dragon Rise Ventures Limited owns 51% of the company
  • 20% of Ruifeng Power Group is held by insiders

If you want to know who really controls Ruifeng Power Group Company Limited (HKG:2025), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies were the biggest beneficiaries of last week’s 12% gain.

In the chart below, we zoom in on the different ownership groups of Ruifeng Power Group.

See our latest analysis for Ruifeng Power Group

ownership-breakdown
SEHK:2025 Ownership Breakdown August 7th 2024

What Does The Lack Of Institutional Ownership Tell Us About Ruifeng Power Group?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Ruifeng Power Group's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

earnings-and-revenue-growth
SEHK:2025 Earnings and Revenue Growth August 7th 2024

Ruifeng Power Group is not owned by hedge funds. Our data shows that Dragon Rise Ventures Limited is the largest shareholder with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 8.5% and 5.9% of the shares outstanding respectively, Shiying Wang and Meiling Liu are the second and third largest shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Ruifeng Power Group

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 Ruifeng Power Group Company Limited. It has a market capitalization of just HK$1.4b, and insiders have HK$288m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ruifeng Power Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 51%, of the Ruifeng Power Group stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Ruifeng Power Group better, we need to consider many other factors. For example, we've discovered 2 warning signs for Ruifeng Power Group (1 is concerning!) that you should be aware of before investing here.

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.

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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.