Key Insights

• Significant control over Union Semiconductor (Hefei) by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 11 shareholders own 50% of the company
• Institutions own 14% of Union Semiconductor (Hefei)

If you want to know who really controls Union Semiconductor (Hefei) Co., Ltd. (SHSE:688403), then you'll have to look at the makeup of its share registry. With 43% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by CN¥387m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Union Semiconductor (Hefei).

What Does The Institutional Ownership Tell Us About Union Semiconductor (Hefei)?

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.

As you can see, institutional investors have a fair amount of stake in Union Semiconductor (Hefei). This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Union Semiconductor (Hefei), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Union Semiconductor (Hefei). Our data shows that Yangzhou Xinruilian Investment Partnership Enterprise (Limited Partnership) is the largest shareholder with 21% of shares outstanding. Jiaxing Gaohe Equity Investment Fund Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 7.2% of common stock, and Converge Achievement Investment Holdings Limited holds about 4.5% of the company stock. In addition, we found that Ruijun Zheng, the CEO has 2.8% of the shares allocated to their name.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Union Semiconductor (Hefei)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

We can see that insiders own shares in Union Semiconductor (Hefei) Co., Ltd.. As individuals, the insiders collectively own CN¥187m worth of the CN¥6.6b 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

The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. 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 43%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Union Semiconductor (Hefei) (1 is potentially serious) that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.