Private companies among Cryofocus Medtech (Shanghai) Co., Ltd.'s (HKG:6922) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Key Insights

• The considerable ownership by private companies in Cryofocus Medtech (Shanghai) indicates that they collectively have a greater say in management and business strategy
• A total of 3 investors have a majority stake in the company with 53% ownership
• Insider ownership in Cryofocus Medtech (Shanghai) is 16%

To get a sense of who is truly in control of Cryofocus Medtech (Shanghai) Co., Ltd. (HKG:6922), it is important to understand the ownership structure of the business. With 35% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, private companies benefitted the most after the company's market cap rose by HK$184m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Cryofocus Medtech (Shanghai).

Check out our latest analysis for Cryofocus Medtech (Shanghai)

What Does The Institutional Ownership Tell Us About Cryofocus Medtech (Shanghai)?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Since institutions own only a small portion of Cryofocus Medtech (Shanghai), many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Cryofocus Medtech (Shanghai). Our data shows that Ningbo Linfeng Biotechnology Co., Ltd is the largest shareholder with 33% of shares outstanding. With 11% and 9.9% of the shares outstanding respectively, Cryofocus Medtech (Shanghai) Co., Ltd., ESOP and Hangzhou Proxima Innovative Investment Management L.P. are the second and third largest shareholders. Additionally, the company's CEO Jun Zhu directly holds 0.6% of the total shares outstanding.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Cryofocus Medtech (Shanghai)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 most recent data indicates that insiders own a reasonable proportion of Cryofocus Medtech (Shanghai) Co., Ltd.. Insiders have a HK$305m stake in this HK$1.9b 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, who are usually individual investors, hold a 10% stake in Cryofocus Medtech (Shanghai). 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 Equity Ownership

With a stake of 25%, private equity firms could influence the Cryofocus Medtech (Shanghai) board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 35%, of the Cryofocus Medtech (Shanghai) stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Cryofocus Medtech (Shanghai) better, we need to consider many other factors. Be aware that Cryofocus Medtech (Shanghai) is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free 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.