The private company that is the largest shareholder in Hangzhou Roots Energy Saving Technology Co., Ltd. (SZSE:300652) increased the value of its holding after the stock price surged 11% last week.

key insights

Every investor in Hang Zhou Radical Energy-Saving Technology Co., Ltd. (SZSE:300652) should be aware of the most powerful shareholder groups. We can see that private companies own 42% of his shares, making up the majority. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.

As a result, the stock rose 11% last week, reaching a market capitalization of C$2.5 billion, the highest score among all privately held companies.

Let's delve deeper into each type of Hangzhou Innovative Energy Saving Technology owner, starting with the table below.

See the latest analysis of Hangzhou's innovative energy-saving technologies.

What does institutional ownership tell us about Hangzhou's innovative energy-saving technologies?

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

Hang Zhou Radical Energy-Saving Technology already has a share registry. In fact, they own a significant stake in the company. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Hang Zhou Radical Energy-Saving Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Note that hedge funds have no meaningful investments in Hangzhou's innovative energy-saving technologies. Beijing Kejian Holding Enterprise (Limited Partnership) is currently the company's largest shareholder with 29% of the outstanding shares. By comparison, the second and third largest shareholders hold about 20% and 8.9% of the stock, respectively.

To make our study more interesting, we found that the top 3 shareholders have majority ownership in the company. This means they have enough power to influence company decisions.

While researching 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 know, there isn't any analyst coverage of the company, so it's probably flying under the radar.

Insider ownership of innovative energy saving technology in Hangzhou

The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.

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

Our information suggests that insiders continue to own a significant stake in Hangzhou Roots Energy Saving Technology Co., Ltd. Insiders own CA$345m worth of shares in the CA$2.5b company. While this shows alignment with shareholders, it's worth noting that the company is still very small. Some insiders may have founded this business. You can click here to see if insiders have been buying or selling.

Open to the public

With a 32% stake, the general public (mainly individual investors) has some influence over Hangzhou's innovative energy-saving technology. While this group doesn't necessarily call the shots, it can certainly have a big influence on how the company is run.

Private company ownership

Private companies appear to own 42% of Hangzhou Radical Energy Saving Technology shares. It might be worth looking into this further. If insiders or other parties have an interest in these private companies, this must 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. However, to better understand Hangzhou's innovative energy-saving technology, many other factors need to be considered. For example, we discovered that Two warning signs for Hangzhou's innovative energy-saving technology What you need to know before investing here.

If you want to check out another company with potentially better financials, don't miss this free A list of interesting companies backed by strong financial data.

Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.