Institutions own 25% of Malaysian Pacific Industries Berhad (KLSE:MPI) shares but private companies control 59% of the company
Key Insights
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Significant control over Malaysian Pacific Industries Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
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Hong Leong Company (Malaysia) Berhad (Hlcm) owns 58% of the company
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Institutional ownership in Malaysian Pacific Industries Berhad is 25%
If you want to know who really controls Malaysian Pacific Industries Berhad (KLSE:MPI), then you'll have to look at the makeup of its share registry. With 59% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And institutions on the other hand have a 25% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
In the chart below, we zoom in on the different ownership groups of Malaysian Pacific Industries Berhad.
Check out our latest analysis for Malaysian Pacific Industries Berhad
What Does The Institutional Ownership Tell Us About Malaysian Pacific Industries Berhad?
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.
As you can see, institutional investors have a fair amount of stake in Malaysian Pacific Industries 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Malaysian Pacific Industries Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Malaysian Pacific Industries Berhad. Our data shows that Hong Leong Company (Malaysia) Berhad (Hlcm) is the largest shareholder with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Eastspring Investments (Singapore) Limited and Employees Provident Fund of Malaysia, with an equal amount of shares to their name at 5.0%.
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.