Key Insights

• The considerable ownership by public companies in Long Young Electronic (Kunshan) indicates that they collectively have a greater say in management and business strategy
• 69% of the company is held by a single shareholder (Top Bright Holding Co., Ltd.)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Long Young Electronic (Kunshan) Co., Ltd. (SZSE:301389), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 69% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies were the biggest beneficiaries of last week's 14% gain.

In the chart below, we zoom in on the different ownership groups of Long Young Electronic (Kunshan).

What Does The Institutional Ownership Tell Us About Long Young Electronic (Kunshan)?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Long Young Electronic (Kunshan) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Long Young Electronic (Kunshan)'s earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Long Young Electronic (Kunshan). Looking at our data, we can see that the largest shareholder is Top Bright Holding Co., Ltd. with 69% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Kunshan Qunzhan Business Consulting Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 2.0% of common stock, and Sova Capital holds about 0.9% of the company stock.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Long Young Electronic (Kunshan)

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

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Long Young Electronic (Kunshan). 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.

Public Company Ownership

Public companies currently own 69% of Long Young Electronic (Kunshan) stock. 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. Take risks for example - Long Young Electronic (Kunshan) has 3 warning signs (and 2 which are potentially serious) we think you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.