Key Insights

• The considerable ownership by private companies in Sino-Synergy Hydrogen Energy Technology (Jiaxing) indicates that they collectively have a greater say in management and business strategy
• A total of 7 investors have a majority stake in the company with 53% ownership
• Insider ownership in Sino-Synergy Hydrogen Energy Technology (Jiaxing) is 18%

If you want to know who really controls Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd. (HKG:9663), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies were the biggest beneficiaries of last week's 4.6% gain.

Let's delve deeper into each type of owner of Sino-Synergy Hydrogen Energy Technology (Jiaxing), beginning with the chart below.

What Does The Institutional Ownership Tell Us About Sino-Synergy Hydrogen Energy Technology (Jiaxing)?

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 Sino-Synergy Hydrogen Energy Technology (Jiaxing) 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sino-Synergy Hydrogen Energy Technology (Jiaxing)'s historic earnings and revenue below, but keep in mind there's always more to the story.

Sino-Synergy Hydrogen Energy Technology (Jiaxing) is not owned by hedge funds. Our data suggests that Xiaomin Chen, who is also the company's Top Key Executive, holds the most number of shares at 15%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 13% and 6.0% of the shares outstanding respectively, Guangdong Foshan (Yunfu) Industrial Transfer Industrial Park Investment Development Co., Ltd. and Jiaxing Nanhu Equity Investment Fund Co., Ltd. are the second and third largest shareholders. Furthermore, CEO Zeyun Yang is the owner of 1.0% of the company's shares.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. 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 Sino-Synergy Hydrogen Energy Technology (Jiaxing)

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.

It seems insiders own a significant proportion of Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd.. It is very interesting to see that insiders have a meaningful HK$1.7b stake in this HK$9.8b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sino-Synergy Hydrogen Energy Technology (Jiaxing). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With an ownership of 6.0%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

Our data indicates that Private Companies hold 37%, of the company's shares. 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.

Public Company Ownership

We can see that public companies hold 3.9% of the Sino-Synergy Hydrogen Energy Technology (Jiaxing) shares on issue. 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. Be aware that Sino-Synergy Hydrogen Energy Technology (Jiaxing) is showing 1 warning sign in our investment analysis , you should know about...

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.

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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.