Key Insights

• The considerable ownership by retail investors in TCL Zhonghuan Renewable Energy TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 44% ownership
• Institutional ownership in TCL Zhonghuan Renewable Energy TechnologyLtd is 15%

To get a sense of who is truly in control of TCL Zhonghuan Renewable Energy Technology Co.,Ltd. (SZSE:002129), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 53% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And public companies on the other hand have a 30% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about TCL Zhonghuan Renewable Energy TechnologyLtd.

What Does The Institutional Ownership Tell Us About TCL Zhonghuan Renewable Energy TechnologyLtd?

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.

TCL Zhonghuan Renewable Energy TechnologyLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 TCL Zhonghuan Renewable Energy TechnologyLtd's earnings history below. Of course, the future is what really matters.

TCL Zhonghuan Renewable Energy TechnologyLtd is not owned by hedge funds. TCL Technology Group Corporation is currently the largest shareholder, with 30% of shares outstanding. The second and third largest shareholders are Foresight Fund Management Company and China Asset Management Co. Ltd., with an equal amount of shares to their name at 1.3%.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of TCL Zhonghuan Renewable Energy TechnologyLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals 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 most recent data indicates that insiders own less than 1% of TCL Zhonghuan Renewable Energy Technology Co.,Ltd.. Keep in mind that it's a big company, and the insiders own CN¥39m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 53% of TCL Zhonghuan Renewable Energy TechnologyLtd shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Public Company Ownership

We can see that public companies hold 30% of the TCL Zhonghuan Renewable Energy TechnologyLtd shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. For example, we've discovered 4 warning signs for TCL Zhonghuan Renewable Energy TechnologyLtd (2 are a bit concerning!) that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.