Key Insights

• Significant control over Dong Yi Ri Sheng Home Decoration GroupLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 6 shareholders own 51% of the company
• Institutional ownership in Dong Yi Ri Sheng Home Decoration GroupLtd is 22%

Every investor in Dong Yi Ri Sheng Home Decoration Group Co.,Ltd. (SZSE:002713) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 36% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, individual investors endured the biggest losses as the stock fell by 25%.

In the chart below, we zoom in on the different ownership groups of Dong Yi Ri Sheng Home Decoration GroupLtd.

What Does The Institutional Ownership Tell Us About Dong Yi Ri Sheng Home Decoration GroupLtd?

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

We can see that Dong Yi Ri Sheng Home Decoration GroupLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Dong Yi Ri Sheng Home Decoration GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Dong Yi Ri Sheng Home Decoration GroupLtd. Tianjin Dongyi Tianzheng Investment Co., Ltd. is currently the largest shareholder, with 32% of shares outstanding. The second and third largest shareholders are Zhongyue Capital Management Co., Ltd. and Xiaomi Corporation, with an equal amount of shares to their name at 5.0%. Furthermore, CEO Hui Chen is the owner of 1.4% of the company's shares.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Dong Yi Ri Sheng Home Decoration GroupLtd

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.

Shareholders would probably be interested to learn that insiders own shares in Dong Yi Ri Sheng Home Decoration Group Co.,Ltd.. In their own names, insiders own CN¥46m worth of stock in the CN¥1.3b 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-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 32%, of the Dong Yi Ri Sheng Home Decoration GroupLtd stock. 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.

Public Company Ownership

It appears to us that public companies own 6.2% of Dong Yi Ri Sheng Home Decoration GroupLtd. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Dong Yi Ri Sheng Home Decoration GroupLtd (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.