Private companies among Guangdong Misun Technology Co., Ltd.'s (SZSE:301577) largest shareholders, saw gain in holdings value after stock jumped 12% last week

Key Insights

• The considerable ownership by private companies in Guangdong Misun Technology indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 55% of the company
• Institutional ownership in Guangdong Misun Technology is 12%

If you want to know who really controls Guangdong Misun Technology Co., Ltd. (SZSE:301577), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 56% to be precise, is private companies. 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 CN¥279m last week.

Let's delve deeper into each type of owner of Guangdong Misun Technology, beginning with the chart below.

See our latest analysis for Guangdong Misun Technology

What Does The Institutional Ownership Tell Us About Guangdong Misun 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 Guangdong Misun Technology. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Guangdong Misun Technology's earnings history below. Of course, the future is what really matters.

Guangdong Misun Technology is not owned by hedge funds. Our data shows that Shenzhen Quanzhen Investment Co., Ltd. is the largest shareholder with 46% of shares outstanding. Dongguan Tongxin Industrial Investment Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 8.6% of common stock, and China Resources Capital Management Limited holds about 4.7% of the company stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Guangdong Misun Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

We can report that insiders do own shares in Guangdong Misun Technology Co., Ltd.. In their own names, insiders own CN¥74m worth of stock in the CN¥2.6b company. This shows at least some alignment. 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 29% stake in Guangdong Misun Technology. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 56%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guangdong Misun Technology better, we need to consider many other factors. Take risks for example - Guangdong Misun Technology has 1 warning sign we think you should be aware of.

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.