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Dalian Haosen Intelligent Manufacturing Co., Ltd.'s (SHSE:688529) Market Cap Surged CN¥410m Last Week, Individual Investors Who Have a Lot Riding on the Company Were Rewarded

Simply Wall St ·  Dec 3, 2024 07:09

Key Insights

  • Significant control over Dalian Haosen Intelligent Manufacturing by individual investors implies that the general public has more power to influence management and governance-related decisions
  • The top 5 shareholders own 51% of the company
  • Insider ownership in Dalian Haosen Intelligent Manufacturing is 24%

If you want to know who really controls Dalian Haosen Intelligent Manufacturing Co., Ltd. (SHSE:688529), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 31% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors were the biggest beneficiaries of last week's 15% gain.

Let's delve deeper into each type of owner of Dalian Haosen Intelligent Manufacturing, beginning with the chart below.

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SHSE:688529 Ownership Breakdown December 2nd 2024

What Does The Institutional Ownership Tell Us About Dalian Haosen Intelligent Manufacturing?

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.

As you can see, institutional investors have a fair amount of stake in Dalian Haosen Intelligent Manufacturing. 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 Dalian Haosen Intelligent Manufacturing's earnings history below. Of course, the future is what really matters.

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SHSE:688529 Earnings and Revenue Growth December 2nd 2024

Dalian Haosen Intelligent Manufacturing is not owned by hedge funds. Dalian Botong Juyuan Industrial Co., Ltd. is currently the largest shareholder, with 20% of shares outstanding. The second and third largest shareholders are Fanghao Zhao and Jizhou Zhang, with an equal amount of shares to their name at 11%. Interestingly, the bottom two of the top three shareholders also hold the title of Chief Financial Officer and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company. Additionally, the company's CEO Dexi Dong directly holds 2.3% of the total shares outstanding.

On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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

Insider Ownership Of Dalian Haosen Intelligent Manufacturing

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.

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.

Our information suggests that insiders maintain a significant holding in Dalian Haosen Intelligent Manufacturing Co., Ltd.. Insiders have a CN¥744m stake in this CN¥3.1b business. 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

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dalian Haosen Intelligent Manufacturing. 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.

Private Company Ownership

We can see that Private Companies own 24%, of the shares on issue. 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.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Dalian Haosen Intelligent Manufacturing , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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