Key Insights

• Significant control over Dong Yi Ri Sheng Home Decoration GroupLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• A total of 3 investors have a majority stake in the company with 51% ownership
• Institutional ownership in Dong Yi Ri Sheng Home Decoration GroupLtd is 12%

If you want to know who really controls Dong Yi Ri Sheng Home Decoration Group Co.,Ltd. (SZSE:002713), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, private companies endured the biggest losses as the stock fell by 17%.

Let's take a closer look to see what the different types of shareholders can tell us about Dong Yi Ri Sheng Home Decoration GroupLtd.

What Does The Institutional Ownership Tell Us About Dong Yi Ri Sheng Home Decoration GroupLtd?

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.

We can see that Dong Yi Ri Sheng Home Decoration GroupLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Dong Yi Ri Sheng Home Decoration GroupLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Dong Yi Ri Sheng Home Decoration GroupLtd is not owned by hedge funds. The company's largest shareholder is Tianjin Dongyi Tianzheng Investment Co., Ltd., with ownership of 30%. In comparison, the second and third largest shareholders hold about 16% and 5.0% of the stock. In addition, we found that Hui Chen, the CEO has 1.4% of the shares allocated to their name.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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. 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 Dong Yi Ri Sheng Home Decoration GroupLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Dong Yi Ri Sheng Home Decoration Group Co.,Ltd.. In their own names, insiders own CN¥60m worth of stock in the CN¥1.8b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dong Yi Ri Sheng Home Decoration GroupLtd. 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

Our data indicates that Private Companies hold 46%, of the company's shares. 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.

Public Company Ownership

It appears to us that public companies own 6.2% of Dong Yi Ri Sheng Home Decoration GroupLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Case in point: We've spotted 3 warning signs for Dong Yi Ri Sheng Home Decoration GroupLtd you should be aware of.

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.