With 51% ownership, TSH Resources Berhad (KLSE:TSH) insiders have a lot riding on the company's future

editorial-team@simplywallst.com (Simply Wall St)

Mon, Mar 18, 2024, 7:27 PM 4 min read

Key Insights

TSH Resources Berhad's significant insider ownership suggests inherent interests in company's expansion
A total of 6 investors have a majority stake in the company with 52% ownership
17% of TSH Resources Berhad is held by Institutions

If you want to know who really controls TSH Resources Berhad (KLSE:TSH), then you'll have to look at the makeup of its share registry. With 51% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

So, insiders of TSH Resources Berhad have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about TSH Resources Berhad.

See our latest analysis for TSH Resources Berhad

ownership-breakdown — KLSE:TSH Ownership Breakdown March 19th 2024

What Does The Institutional Ownership Tell Us About TSH Resources 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.

We can see that TSH Resources Berhad does have institutional investors; and they hold a good portion of the company's stock. 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 TSH Resources Berhad's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — KLSE:TSH Earnings and Revenue Growth March 19th 2024

We note that hedge funds don't have a meaningful investment in TSH Resources Berhad. With a 32% stake, CEO Aik Tan is the largest shareholder. In comparison, the second and third largest shareholders hold about 5.2% and 4.2% of the stock. Aik Tan, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of TSH 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. 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 information suggests that insiders own more than half of TSH Resources Berhad. This gives them effective control of the company. That means they own RM791m worth of shares in the RM1.6b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in TSH Resources 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand TSH Resources Berhad better, we need to consider many other factors. For instance, we've identified 2 warning signs for TSH Resources Berhad that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.