Retail investors are Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited's (SGX:T14) biggest owners and were hit after market cap dropped US$139m
The considerable ownership by retail investors in Tianjin Pharmaceutical Da Ren Tang Group indicates that they collectively have a greater say in management and business strategy
The top 12 shareholders own 50% of the company
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited (SGX:T14), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As market cap fell to US$4.7b last week, retail investors would have faced the highest losses than any other shareholder groups of the company.
Let's delve deeper into each type of owner of Tianjin Pharmaceutical Da Ren Tang Group, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Tianjin Pharmaceutical Da Ren Tang Group?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Tianjin Pharmaceutical Da Ren Tang Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Tianjin Pharmaceutical Da Ren Tang Group's earnings history below. Of course, the future is what really matters.
SGX:T14 Earnings and Revenue Growth June 6th 2023
Tianjin Pharmaceutical Da Ren Tang Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jinhushen Biomedical Technology Co., Ltd. with 43% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 1.5% and 1.1%, of the shares outstanding, respectively.
A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
While studying 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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Tianjin Pharmaceutical Da Ren Tang Group
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.
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.
Shareholders would probably be interested to learn that insiders own shares in Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$95m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 46% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Our data indicates that Private Companies hold 43%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Case in point: We've spotted 1 warning sign for Tianjin Pharmaceutical Da Ren Tang Group you should be aware of.
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.
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