Key Insights
If you want to know who really controls Teflon Science and Technology Group Co. Ltd. ( SZSE:300171 ), then you'll have to look at the makeup of the company's shareholder registry. We can see that with an ownership of 52%, individual insiders own the vast majority of the company's shares. In other words, this group faces the greatest upside potential (or downside risk).
And over the past week, insiders have suffered the biggest losses, with the share price falling 8.8%.
In the chart below, we zoom in on the different ownership groups for Tofflon Science and Technology Group.
Check out our latest analysis for Teflon Scientific and Technology Group
SZSE:300171 Ownership Breakdown August 26, 2024
What does institutional ownership tell us about Toflon Science and Technology Group?
Institutions typically compare their own performance against a benchmark when reporting to their own investors, so when a stock is included in a major index, they often increase their interest in that stock. You can expect most companies to have some institutional investors on the register, especially if they are growing.
Toflon Science and Technology Group already has institutional investors on the share registry. In fact, institutions hold a significant amount of shares in the company. This suggests that there is some credibility among professional investors. However, you can't rely on this fact alone, as like everyone, institutions make bad investments sometimes. When multiple institutional investors own a stock, there's always a risk that you may end up in a 'crowded trade'. If such a trade goes wrong, multiple parties may compete to sell shares fast. This risk is higher in companies without a history of growth. You can see Toflon Science and Technology Group's historic earnings and revenue below, but keep in mind that there's always more to the story.
SZSE:300171 Revenue and Sales Growth August 26, 2024
Hedge funds don't have many holdings in Teflon Science and Technology Group. Looking at our data, we can see that the largest shareholder is the CEO, Zheng Xiaodong, with 51% of shares issued. This essentially means they have a significant influence over the performance and future of the company, as such, insider ownership is often viewed favorably by potential buyers. The second and third largest shareholders are Shanghai Biomedical Industry Equity Fund Management Co., Ltd. and CS Capital Co., Ltd., with 3.2% of shares each.
Researching institutional ownership is a good way to gauge and sift through a stock's expected performance. The same can be achieved by studying analyst sentiment. There will be some analyst coverage of the stock, but it may become more well-known over time.
Insider ownership of Teflon Science and Technology Group
While the precise definition of an insider can be subjective, almost everyone considers directors to be insiders. A company's management should report to the board of directors, which should represent the interests of shareholders. Notably, top-level managers themselves may sit on the board of directors.
I generally consider insider ownership to be a good thing, but in some cases it can make it difficult for other shareholders to hold the board to account for decisions.
It appears that insiders own more than half of Teflon Science and Technology Group Co., Ltd.'s shares. This gives them a lot of power. Insiders own RMB4b worth of shares in a company with a market capitalization of RMB7.7b, which is surprising. This level of investment is good. You can see if insiders have sold shares here.
General public property
With a 30% ownership, the general public, mostly retail investors, have a degree of influence over Teflon Science and Technology Group. While this group doesn't necessarily have decision-making power, it can certainly have a substantial impact on how the company is run.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important, and to that end, you should be aware of the 3 warning signs we've spotted with Tofflon Science and Technology Group (including 1 which we're not too impressed with).
If you would like to find out what analysts are predicting about future growth then do not miss this free report on analyst forecasts.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
Valuation is complicated, but we're here to simplify it.
Through a detailed analysis including fair value estimates, potential risks, dividends, insider trading, financials, and more, we determine whether Tofflon Science and Technology Group is undervalued or overvalued.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please 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 herein.
