Key Insights

• Significant control over Bondex Supply Chain Management by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 53% of the company
• 34% of Bondex Supply Chain Management is held by insiders

To get a sense of who is truly in control of Bondex Supply Chain Management Co., Ltd. (SHSE:603836), it is important to understand the ownership structure of the business. With 35% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 17% increase in the stock price last week, private companies profited the most, but insiders who own 34% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Bondex Supply Chain Management.

What Does The Lack Of Institutional Ownership Tell Us About Bondex Supply Chain Management?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Bondex Supply Chain Management's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Bondex Supply Chain Management is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hai Tang with 27% of shares outstanding. For context, the second largest shareholder holds about 27% of the shares outstanding, followed by an ownership of 3.9% by the third-largest shareholder. Xiping Wang, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Bondex Supply Chain Management

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 insiders own a significant proportion of Bondex Supply Chain Management Co., Ltd.. It has a market capitalization of just CN¥2.4b, and insiders have CN¥839m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Bondex Supply Chain Management. 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 Company Ownership

It seems that Private Companies own 35%, of the Bondex Supply Chain Management stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Bondex Supply Chain Management better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Bondex Supply Chain Management (of which 2 can't be ignored!) 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.