Gun Ei Chemical Industry Co., Ltd. (TSE:4229) surges 12%; individual investors who own 50% shares profited along with institutions

Simply Wall St · 2d ago

Key Insights

  • The considerable ownership by individual investors in Gun Ei Chemical Industry indicates that they collectively have a greater say in management and business strategy
  • 50% of the business is held by the top 25 shareholders
  • Institutions own 32% of Gun Ei Chemical Industry

Every investor in Gun Ei Chemical Industry Co., Ltd. (TSE:4229) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched JP¥26b last week, while institutions who own 32% also benefitted.

In the chart below, we zoom in on the different ownership groups of Gun Ei Chemical Industry.

See our latest analysis for Gun Ei Chemical Industry

ownership-breakdown
TSE:4229 Ownership Breakdown December 18th 2025

What Does The Institutional Ownership Tell Us About Gun Ei Chemical Industry?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Gun Ei Chemical Industry. 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. 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 Gun Ei Chemical Industry, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSE:4229 Earnings and Revenue Growth December 18th 2025

Hedge funds don't have many shares in Gun Ei Chemical Industry. Our data shows that Mitsui Chemicals Inc., Retirement Benefit Trust is the largest shareholder with 8.7% of shares outstanding. With 8.0% and 4.6% of the shares outstanding respectively, Gun Ei Chemical Industry Co. Ltd., Business Partners' Shareholding Association and Gungin Investment Management Co., Ltd. are the second and third largest shareholders. Furthermore, CEO Kiichiro Arita is the owner of 1.3% of the company's shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Gun Ei Chemical Industry

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.

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.

Our most recent data indicates that insiders own some shares in Gun Ei Chemical Industry Co., Ltd.. As individuals, the insiders collectively own JP¥745m worth of the JP¥26b company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 50% stake in Gun Ei Chemical Industry, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Public Company Ownership

We can see that public companies hold 7.1% of the Gun Ei Chemical Industry shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Gun Ei Chemical Industry has 1 warning sign we think you should be aware of.

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.