Key Insights
- CNNC Hua Yuan Titanium Dioxide's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- 50% of the business is held by the top 7 shareholders
- 38% of CNNC Hua Yuan Titanium Dioxide is held by insiders
A look at the shareholders of CNNC Hua Yuan Titanium Dioxide Co., Ltd (SZSE:002145) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While insiders who own 38% came under pressure after market cap dropped to CN¥16b last week,individual investors took the most losses.
Let's delve deeper into each type of owner of CNNC Hua Yuan Titanium Dioxide, beginning with the chart below.
What Does The Institutional Ownership Tell Us About CNNC Hua Yuan Titanium Dioxide?
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 CNNC Hua Yuan Titanium Dioxide 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 CNNC Hua Yuan Titanium Dioxide's earnings history below. Of course, the future is what really matters.
CNNC Hua Yuan Titanium Dioxide is not owned by hedge funds. The company's largest shareholder is Zelong Wang, with ownership of 35%. With 3.2% and 3.0% of the shares outstanding respectively, SDIC Unity Capital Co., Ltd. and Cnnc Hua Yuan Titanium Dioxide Co., Ltd, ESOP are the second and third largest shareholders.
We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 CNNC Hua Yuan Titanium Dioxide
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. 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.
Our information suggests that insiders maintain a significant holding in CNNC Hua Yuan Titanium Dioxide Co., Ltd. It is very interesting to see that insiders have a meaningful CN¥6.1b stake in this CN¥16b 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
The general public-- including retail investors -- own 39% stake in the company, and hence can't easily be ignored. 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. Be aware that CNNC Hua Yuan Titanium Dioxide is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.