60% of Tianshui Huatian Technology Co., Ltd. (SZSE:002185) is owned by private investors and 24% by private companies.

Key findings

• The significant control of retail investors over Tianshui Huatian Technology means that the general public has more influence on management and governance-related decisions
• 40% of the company is owned by the 25 largest shareholders
• Institutions own 17% of Tianshui Huatian Technology

If you want to know who really controls Tianshui Huatian Technology Co., Ltd. (SZSE:002185), you need to look at the composition of its share registry. And the group that holds the biggest piece of the pie is retail investors with 60% shares. In other words, the group has the greatest upside potential (or downside risk).

Private companies, on the other hand, account for 24% of the group’s shareholders.

Let’s dive deeper into each ownership type of Tianshui Huatian Technology, starting with the table below.

Check out our latest analysis for Tianshui Huatian Technology

What does institutional ownership tell us about Tianshui Huatian Technology?

Institutional investors often compare their own returns to those of a commonly followed index, so they typically consider buying larger companies included in the relevant benchmark index.

Tianshui Huatian Technology already has institutions on the share registry. In fact, they own a sizeable stake in the company. This means that the analysts working for those institutions have looked at the stock and they like it. But 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 out Tianshui Huatian Technology’s past earnings trajectory (see below). Of course, keep in mind that there are other factors to consider as well.

Hedge funds do not own many shares in Tianshui Huatian Technology. Our data shows that the largest shareholder is Tianshui Huatian Microelectronics Co. Ltd. with 23% of outstanding shares. Huaxin Investment Management Co., Ltd. and China Asset Management Co. Ltd. are the second and third largest shareholders with 3.2% and 1.9% of outstanding shares respectively.

When examining our ownership data, we found that 25 of the largest shareholders collectively own less than 50% of the share register, meaning that no single person has a controlling interest.

Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst opinions. There are a significant number of analysts covering the stock, so it might be useful to find out their aggregate view of the future.

Insider ownership of Tianshui Huatian Technology

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the business, but the CEO is responsible to the board, even if he or she is a member of the board.

Most people consider insider ownership to be a positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated in this group.

Our latest data shows that insiders own less than 1% of Tianshui Huatian Technology Co., Ltd. However, it is possible that insiders have indirect interests through a more complex structure. It is a large company, so even small holdings can lead to alignment between the board and shareholders. In this case, insiders own CNY8.8m worth of shares. It’s always good to have at least some insider ownership, but it might be worth checking to see if those insiders have been selling.

Public property

The general public, mostly retail investors, collectively hold 60% of Tianshui Huatian Technology’s shares. This stake allows retail investors to collectively participate in decisions that affect shareholder returns, such as dividend policy and the appointment of directors. They can also exercise their voting rights in acquisitions or mergers that may not improve profitability.

Private company ownership

It appears that private companies own 24% of Tianshui Huatian Technology’s shares. It’s difficult to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a publicly traded company through a separate private company.

Next Steps:

I find it very interesting to investigate who exactly owns a company. But to gain real insight, we need to consider other information as well. To do this, you should be aware of the following things: 1 warning sign we discovered it at Tianshui Huatian Technology.

But ultimately It is the futurenot the past, will determine how well the owners of this company will perform, so we think it wise to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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