Yahoo Finance Individual investors own 35% of Malaysia Smelting Corporation Berhad (KLSE:MSC) shares but private companies control 53% of the company
Key Insights
Malaysia Smelting Corporation Berhad's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
The largest shareholder of the company is Tan Chin Tuan Pte Ltd with a 52% stake
Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Malaysia Smelting Corporation Berhad (KLSE:MSC) can tell us which group is most powerful. The group holding the most number of shares in the company, around 53% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 35% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Malaysia Smelting Corporation Berhad.
See our latest analysis for Malaysia Smelting Corporation Berhad
What Does The Institutional Ownership Tell Us About Malaysia Smelting Corporation Berhad?
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.
Less than 5% of Malaysia Smelting Corporation Berhad is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds don't have many shares in Malaysia Smelting Corporation Berhad. The company's largest shareholder is Tan Chin Tuan Pte Ltd, with ownership of 52%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Neoh Choo Ee & Company, Sdn. Berhad is the second largest shareholder owning 1.3% of common stock, and Mettiz Capital Limited holds about 0.9% of the company stock.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Malaysia Smelting Corporation Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
We can see that insiders own shares in Malaysia Smelting Corporation Berhad. It has a market capitalization of just RM1b, and insiders have RM73m worth of shares, in their own names. 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, who are usually individual investors, hold a 35% stake in Malaysia Smelting Corporation Berhad. 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
We can see that Private Companies own 53%, of the shares on issue. 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. To that end, you should be aware of the 1 warning sign we've spotted with Malaysia Smelting Corporation Berhad .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
