Yahoo Finance Individual investors own 12% of DKSH Holdings (Malaysia) Berhad (KLSE:DKSH) shares but public companies control 74% of the company
Key Insights
DKSH Holdings (Malaysia) Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
The largest shareholder of the company is DKSH Holding AG with a 74% 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 DKSH Holdings (Malaysia) Berhad (KLSE:DKSH) can tell us which group is most powerful. The group holding the most number of shares in the company, around 74% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 12% of the company’s shareholders.
Let's delve deeper into each type of owner of DKSH Holdings (Malaysia) Berhad, beginning with the chart below.
View our latest analysis for DKSH Holdings (Malaysia) Berhad
What Does The Institutional Ownership Tell Us About DKSH Holdings (Malaysia) 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.
As you can see, institutional investors have a fair amount of stake in DKSH Holdings (Malaysia) Berhad. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 DKSH Holdings (Malaysia) Berhad's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in DKSH Holdings (Malaysia) Berhad. The company's largest shareholder is DKSH Holding AG, with ownership of 74%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Pangolin Investment Management Pte Ltd is the second largest shareholder owning 2.7% of common stock, and Eastspring Investments (Singapore) Limited holds about 1.4% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of DKSH Holdings (Malaysia) Berhad
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.
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 DKSH Holdings (Malaysia) Berhad. It has a market capitalization of just RM815m, and insiders have RM30m worth of shares, in their own names. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over DKSH Holdings (Malaysia) Berhad. 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.
Public Company Ownership
We can see that public companies hold 74% of the DKSH Holdings (Malaysia) Berhad 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. To that end, you should learn about the 2 warning signs we've spotted with DKSH Holdings (Malaysia) Berhad (including 1 which doesn't sit too well with us) .
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
