key insights

  • Retail investors’ substantial ownership in Guangdong Kingstrong Technology indicates that they collectively have a major say in management and business strategy.
  • A total of 25 investors have a majority stake in the company with 42% ownership.
  • Insiders own 28% of Guangdong Kingstrong Technology

If you want to know who really controls Guangdong Kingstrong Technology Co., Ltd. (SZSE:300629), then you need to look at the structure of its share registry. The group that owns the most shares in the company, about 58% to be exact, are retail investors. In other words, the group will gain the most (or lose the most) from its investment in the company.

While retail investors were the group that gained the most after last week’s 10% price gain, insiders also took a 28% cut.

Let’s take a deeper look at each type of Guangdong Kingstrong Technology owner, starting with the chart below.

See our latest analysis for Guangdong Kingstrong Technology

division of ownership
SZSE:300629 Ownership Breakdown 2 April 2024

What does institutional ownership tell us about Guangdong Kingstrong Technology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. Therefore they generally consider buying larger companies that are included in the respective benchmark index.

As you can see, institutional investors have a fair amount of stake in Guangdong Kingstrong Technology. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the perceived validation you get with institutional investors. They too are wrong sometimes. When multiple institutions own a stock, there is always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell the stock quickly. This risk is greater in a company without a history of growth. You can see Guangdong Kingstrong Technology’s historical earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
SZSE:300629 Earnings and Revenue Growth April 2, 2024

We find that hedge funds don’t have a meaningful investment in Guangdong Kingstrong Technology. With a 20% stake, CEO Gang Wang is the largest shareholder. In comparison, the second and third largest shareholders own about 3.2% and 2.4% of the stock.

Upon studying our ownership data, we found that the 25 top shareholders collectively own less than 50% of the share register, meaning no single individual has a majority interest.

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’s no analyst coverage of the company as far as we can tell, so it’s probably flying under the radar.

Insider ownership of Guangdong Kingstrong Technology

The definition of an insider may vary slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are the founder or CEO.

Insider ownership is positive when it signals that 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.

Our information shows that insiders maintain a significant stake in Guangdong Kingstrong Technology Co Ltd. Insiders own CN¥1.4b worth of shares in the CN¥5.1b company. It’s great to see that insiders have invested so much in the business. This might be worth checking out If those insiders have been buying recently.

common public ownership

The general public, consisting mostly of individual investors, collectively own 58% of Guangdong Kingstrong Technology’s shares. This level of ownership gives investors from the broader public some power to influence key policy decisions such as board composition, executive compensation and dividend payout ratios.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to better understand Guangdong Kingstrong Technology, we need to consider many other factors. Consider, for example, the ever-present threat of investment risk. We’ve identified 2 warning signs With Guangdong Kingstrong Technology (at least 1 that is potentially serious) And understanding them should be part of your investing process.

Absolutely, You may find a great investment by looking elsewhere. So take a look at this Free List of interesting companies.

Note: The figures in this article have been calculated using data from the last twelve months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the entire year.

Valuation is complex, but we’re helping to simplify it.

determine whether Guangdong Kingstrong Technology Potentially overvalued or undervalued by examining our comprehensive analysis, which includes Fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Have any feedback on this article? Concerned about ingredients? keep in touch directly with us. Alternatively, email editorial-team(at)Simplewallst.com.

This article from Simply Wall St is of a general nature. We only provide commentary based on historical data and analyst forecasts using unbiased methodology and our articles are not intended to provide financial advice. It does not recommend buying or selling any stock, and does not take into account your objectives, or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.


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