Biocytogen Pharmaceuticals (Beijing) Co., Ltd.'s (HKG:2315) biggest owners are retail investors who got richer after stock soared 10% last week

Key Insights

• Biocytogen Pharmaceuticals (Beijing)'s significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 7 shareholders own 52% of the company
• 16% of Biocytogen Pharmaceuticals (Beijing) is held by insiders

Every investor in Biocytogen Pharmaceuticals (Beijing) Co., Ltd. (HKG:2315) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 19% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors were the biggest beneficiaries of last week’s 10% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Biocytogen Pharmaceuticals (Beijing).

Check out our latest analysis for Biocytogen Pharmaceuticals (Beijing)

What Does The Institutional Ownership Tell Us About Biocytogen Pharmaceuticals (Beijing)?

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 Biocytogen Pharmaceuticals (Beijing) 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 Biocytogen Pharmaceuticals (Beijing), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Biocytogen Pharmaceuticals (Beijing). The company's largest shareholder is Biocytogen Pharmaceuticals (Beijing) Co., Ltd, ESOP, with ownership of 14%. The second and third largest shareholders are CMB International Capital Management (Shenzhen) Co, Ltd. and Jian Ni, with an equal amount of shares to their name at 7.3%. Jian Ni, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Yuelei Shen is the owner of 6.6% of the company's shares.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Biocytogen Pharmaceuticals (Beijing)

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of Biocytogen Pharmaceuticals (Beijing) Co., Ltd.. Insiders own HK$716m worth of shares in the HK$4.5b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Biocytogen Pharmaceuticals (Beijing). 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

Private equity firms hold a 18% stake in Biocytogen Pharmaceuticals (Beijing). This suggests they can be influential in key policy decisions. 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.

Private Company Ownership

It seems that Private Companies own 19%, of the Biocytogen Pharmaceuticals (Beijing) 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 Biocytogen Pharmaceuticals (Beijing) better, we need to consider many other factors. Take risks for example - Biocytogen Pharmaceuticals (Beijing) has 1 warning sign we think you should be aware of.

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.