Key Insights

• Keshun Waterproof TechnolgiesLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 21 shareholders own 50% of the company
• 27% of Keshun Waterproof TechnolgiesLtd is held by insiders

If you want to know who really controls Keshun Waterproof Technolgies Co.,Ltd. (SZSE:300737), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week's CN¥505m market cap gain, insiders too had a 27% share in those profits.

Let's delve deeper into each type of owner of Keshun Waterproof TechnolgiesLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Keshun Waterproof TechnolgiesLtd?

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.

As you can see, institutional investors have a fair amount of stake in Keshun Waterproof TechnolgiesLtd. 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. 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 Keshun Waterproof TechnolgiesLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Keshun Waterproof TechnolgiesLtd is not owned by hedge funds. The company's largest shareholder is Weizhong Chen, with ownership of 25%. In comparison, the second and third largest shareholders hold about 7.4% and 5.6% of the stock. Additionally, the company's CEO Yong Fang directly holds 1.1% of the total shares outstanding.

After doing some more digging, we found that the top 21 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Keshun Waterproof TechnolgiesLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Keshun Waterproof Technolgies Co.,Ltd.. It has a market capitalization of just CN¥6.3b, and insiders have CN¥1.7b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Keshun Waterproof TechnolgiesLtd. 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 7.1%, of the Keshun Waterproof TechnolgiesLtd 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 Keshun Waterproof TechnolgiesLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Keshun Waterproof TechnolgiesLtd (including 1 which is potentially serious) .

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.