Zylox-Tonbridge Medical Technology Co., Ltd.'s (HKG:2190) 13% gain last week benefited both retail investors who own 32% as well as insiders

Key Insights

• The considerable ownership by retail investors in Zylox-Tonbridge Medical Technology indicates that they collectively have a greater say in management and business strategy
• The top 9 shareholders own 52% of the company
• Insiders own 22% of Zylox-Tonbridge Medical Technology

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If you want to know who really controls Zylox-Tonbridge Medical Technology Co., Ltd. (HKG:2190), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 32% 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 benefitted the most from last week’s HK$985m market cap gain, insiders too had a 22% share in those profits.

In the chart below, we zoom in on the different ownership groups of Zylox-Tonbridge Medical Technology.

See our latest analysis for Zylox-Tonbridge Medical Technology

What Does The Institutional Ownership Tell Us About Zylox-Tonbridge Medical Technology?

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.

As you can see, institutional investors have a fair amount of stake in Zylox-Tonbridge Medical Technology. 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 Zylox-Tonbridge Medical Technology's earnings history below. Of course, the future is what really matters.

Our data indicates that hedge funds own 11% of Zylox-Tonbridge Medical Technology. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Looking at our data, we can see that the largest shareholder is the CEO Zhong Zhao with 13% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.8% and 5.6% of the stock.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Zylox-Tonbridge Medical Technology

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.

It seems insiders own a significant proportion of Zylox-Tonbridge Medical Technology Co., Ltd.. Insiders own HK$1.9b worth of shares in the HK$8.6b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Zylox-Tonbridge Medical Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 7.8%, private equity firms could influence the Zylox-Tonbridge Medical Technology board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.