CEO Jinfu Xu, largest shareholder of Guangzhou Tinci Materials Technology Co., Ltd. (SZSE:002709), sees the value of his holdings fall 4.9% after the recent drop

Key Insights

To get a sense of who’s really in control of Guangzhou Tinci Materials Technology Co., Ltd. (SZSE:002709), it’s important to understand the company’s ownership structure. And the group that holds the largest share of the pie is insiders, with a 43% stake. In other words, the group faces the maximum upside potential (or downside risk).

As the market value fell to CN¥34 billion last week, insider shareholders must have faced the biggest losses of any other shareholder groups in the company.

Let’s delve deeper into each type of Guangzhou Tinci Materials Technology owner, starting with the chart below.

See our latest analysis for Guangzhou Tinci Materials Technology

What does institutional ownership tell us about Guangzhou Tinci materials technology?

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

As you can see, institutional investors have a fair amount of stake in Guangzhou Tinci Materials Technology. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to be careful about relying on the supposed validation that comes with institutional investors. They also make mistakes sometimes. It’s not uncommon to see a big drop in share price if two large institutional investors try to sell a stock at the same time. So it’s worth checking Guangzhou Tinci Materials Technology’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

Guangzhou Tinci Materials Technology is not owned by hedge funds. With a 37% stake, CEO Jinfu Xu is the largest shareholder. China Universal Asset Management Company Ltd. is the second largest shareholder, owning 1.7% of the common shares, and Fei Lin holds about 1.7% of the company’s shares.

Looking at the shareholder register, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority stake in the ownership.

Researching institutional ownership is a good way to evaluate and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. Many analysts cover the stock, so you can easily analyze its forecast growth.

Privileged Ownership of Guangzhou Tinci Material Technology

The definition of company insiders can be subjective and varies across jurisdictions. Our data reflects individual insiders, capturing board members at a minimum. Management ultimately reports to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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

Our information suggests that insiders hold a significant stake in Guangzhou Tinci Materials Technology Co., Ltd.. It has a market capitalization of just CN¥34b, and insiders own CN¥14b worth of shares in their own names. This is quite significant. Most would be pleased to see the board investing alongside them. You may want to access this free chart showing recent insider trades.

General Public Property

The general public — including retail investors — owns 39% of the company and therefore cannot be easily ignored. 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.

Next steps:

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

If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for the future.

Note: The values ​​in this article are calculated based on data from the last twelve months, which refer to the 12-month period ending on the last date of the month in which the financial statements are dated. This may not be consistent with the figures in the full annual report.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your objectives or financial situation. Our aim is to bring you long-term focused analysis, driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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