Key Insights

• Insiders appear to have a vested interest in Kunshan Kinglai Hygienic MaterialsLtd's growth, as seen by their sizeable ownership
• The top 4 shareholders own 56% of the company
• Institutional ownership in Kunshan Kinglai Hygienic MaterialsLtd is 21%

A look at the shareholders of Kunshan Kinglai Hygienic Materials Co.,Ltd. (SZSE:300260) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥6.5b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Kunshan Kinglai Hygienic MaterialsLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Kunshan Kinglai Hygienic MaterialsLtd?

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.

We can see that Kunshan Kinglai Hygienic MaterialsLtd does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Kunshan Kinglai Hygienic MaterialsLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Kunshan Kinglai Hygienic MaterialsLtd. The company's CEO Shuibo Li is the largest shareholder with 25% of shares outstanding. Anyun Shen is the second largest shareholder owning 17% of common stock, and Baihua Li holds about 6.9% of the company stock. Interestingly, the third-largest shareholder, Baihua Li is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

Our research also brought to light the fact that roughly 56% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Kunshan Kinglai Hygienic MaterialsLtd

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. 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.

It seems that insiders own more than half the Kunshan Kinglai Hygienic Materials Co.,Ltd. stock. This gives them a lot of power. Given it has a market cap of CN¥6.5b, that means they have CN¥3.8b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Kunshan Kinglai Hygienic MaterialsLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Kunshan Kinglai Hygienic MaterialsLtd you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.