Key Insights

• The considerable ownership by retail investors in Hainan Drinda New Energy Technology indicates that they collectively have a greater say in management and business strategy
• The top 11 shareholders own 50% of the company
• Institutional ownership in Hainan Drinda New Energy Technology is 14%

If you want to know who really controls Hainan Drinda New Energy Technology Co., Ltd. (SZSE:002865), 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 42% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥390m last week.

In the chart below, we zoom in on the different ownership groups of Hainan Drinda New Energy Technology.

What Does The Institutional Ownership Tell Us About Hainan Drinda New Energy Technology?

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 Hainan Drinda New Energy Technology. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Hainan Drinda New Energy Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Hainan Drinda New Energy Technology. Looking at our data, we can see that the largest shareholder is Hainan Yang Family Investment Co., Ltd. with 20% of shares outstanding. With 9.8% and 7.2% of the shares outstanding respectively, Shangrao Innovation Development Industry Investment Group Co., Ltd. and Xianze Su are the second and third largest shareholders.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 Hainan Drinda New Energy Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Hainan Drinda New Energy Technology Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥813m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hainan Drinda New Energy Technology. 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 34%, of the Hainan Drinda New Energy Technology stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hainan Drinda New Energy Technology better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Hainan Drinda New Energy Technology you should be aware of, and 1 of them is significant.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com