Key Insights
- Significant control over Lifecome BiochemistryLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
- 46% of the business is held by the top 14 shareholders
- Insiders own 33% of Lifecome BiochemistryLtd
A look at the shareholders of Lifecome Biochemistry Co.,Ltd. (SZSE:002868) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Following a 10% increase in the stock price last week, retail investors profited the most, but insiders who own 33% stock also stood to gain from the increase.
In the chart below, we zoom in on the different ownership groups of Lifecome BiochemistryLtd.
View our latest analysis for Lifecome BiochemistryLtd
What Does The Lack Of Institutional Ownership Tell Us About Lifecome BiochemistryLtd?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Lifecome BiochemistryLtd, for yourself, below.
Lifecome BiochemistryLtd is not owned by hedge funds. Tan Ping Lai is currently the company's largest shareholder with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.2% and 5.0% of the stock. In addition, we found that Tanping Lai, the CEO has 1.0% of the shares allocated to their name.
A deeper look at our ownership data shows that the top 14 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Lifecome BiochemistryLtd
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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems insiders own a significant proportion of Lifecome Biochemistry Co.,Ltd.. Insiders have a CN¥1.9b stake in this CN¥5.8b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 54% stake in Lifecome BiochemistryLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Private Company Ownership
We can see that Private Companies own 12%, of the shares on issue. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Lifecome BiochemistryLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Lifecome BiochemistryLtd you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.