MBM Resources Berhad (KLSE:MBMR) stock most popular amongst private companies who own 52%, while individual investors hold 24%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by private companies in MBM Resources Berhad indicates that they collectively have a greater say in management and business strategy
The largest shareholder of the company is Med-Bumikar Mara Sdn. Bhd. with a 50% stake
A look at the shareholders of MBM Resources Berhad (KLSE:MBMR) can tell us which group is most powerful. With 52% stake, private companies possess the maximum shares in the company. 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 24% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about MBM Resources Berhad.
What Does The Institutional Ownership Tell Us About MBM Resources Berhad?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that MBM Resources Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see MBM Resources Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
KLSE:MBMR Earnings and Revenue Growth October 6th 2024
MBM Resources Berhad is not owned by hedge funds. Med-Bumikar Mara Sdn. Bhd. is currently the largest shareholder, with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 4.6% and 3.6% of the shares outstanding respectively, Lembaga Tabung Haji, Endowment Arm and Public Mutual Bhd. are the second and third largest shareholders.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of MBM Resources 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
Our most recent data indicates that insiders own some shares in MBM Resources Berhad. It has a market capitalization of just RM2.3b, and insiders have RM53m 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-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. 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 52%, 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.
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.
