Yahoo Finance Eco World International Berhad (KLSE:EWINT) stock most popular amongst private companies who own 32%, while public companies hold 27%
Key Insights
Significant control over Eco World International Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
The top 2 shareholders own 54% of the company
Insider ownership in Eco World International Berhad is 16%
If you want to know who really controls Eco World International Berhad (KLSE:EWINT), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And public companies on the other hand have a 27% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Eco World International Berhad.
View our latest analysis for Eco World International Berhad
What Does The Lack Of Institutional Ownership Tell Us About Eco World International Berhad?
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. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Eco World International Berhad's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Eco World International Berhad is not owned by hedge funds. Hong Leong Company (Malaysia) Berhad (Hlcm) is currently the company's largest shareholder with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 27% and 11%, of the shares outstanding, respectively. Kee Liew, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. Furthermore, CEO Leong Teow is the owner of 0.6% of the company's shares.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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 some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Eco World International Berhad
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. 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.
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.
Our most recent data indicates that insiders own a reasonable proportion of Eco World International Berhad. Insiders have a RM132m stake in this RM804m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 18% stake in Eco World International Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 32%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
Public companies currently own 27% of Eco World International Berhad stock. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Eco World International Berhad better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Eco World International Berhad (including 1 which is concerning) .
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
