Key Insights

• Significant control over Guangdong Sunwill Precising PlasticLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 4 shareholders own 50% of the company
• Institutional ownership in Guangdong Sunwill Precising PlasticLtd is 14%

A look at the shareholders of Guangdong Sunwill Precising Plastic Co.,Ltd (SZSE:002676) can tell us which group is most powerful. The group holding the most number of shares in the company, around 47% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors collectively scored the highest last week as the company hit CN¥3.4b market cap following a 13% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Guangdong Sunwill Precising PlasticLtd.

What Does The Institutional Ownership Tell Us About Guangdong Sunwill Precising PlasticLtd?

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 Guangdong Sunwill Precising PlasticLtd 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. 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 Guangdong Sunwill Precising PlasticLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Guangdong Sunwill Precising PlasticLtd. Our data shows that Guangzhou Development District Investment Group Intelligent Manufacturing Industry Investment Group is the largest shareholder with 30% of shares outstanding. The second and third largest shareholders are Jinghua Wen and Western Leadbank Fund Management Co., Ltd., with an equal amount of shares to their name at 8.7%.

Our research also brought to light the fact that roughly 50% 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. 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 Guangdong Sunwill Precising PlasticLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

We can see that insiders own shares in Guangdong Sunwill Precising Plastic Co.,Ltd. As individuals, the insiders collectively own CN¥304m worth of the CN¥3.4b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangdong Sunwill Precising PlasticLtd. 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

We can see that Private Companies own 30%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guangdong Sunwill Precising PlasticLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Guangdong Sunwill Precising PlasticLtd that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.