With 54% ownership, Samaiden Group Berhad (KLSE:SAMAIDEN) insiders have a lot riding on the company's future

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

Thu, Jan 16, 2025, 5:26 PM 4 min read

Key Insights

Samaiden Group Berhad's significant insider ownership suggests inherent interests in company's expansion
52% of the business is held by the top 2 shareholders
16% of Samaiden Group Berhad is held by Institutions

To get a sense of who is truly in control of Samaiden Group Berhad (KLSE:SAMAIDEN), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So it follows, every decision made by insiders of Samaiden Group Berhad regarding the company's future would be crucial to them.

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

View our latest analysis for Samaiden Group Berhad

ownership-breakdown — KLSE:SAMAIDEN Ownership Breakdown January 17th 2025

What Does The Institutional Ownership Tell Us About Samaiden Group 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.

Samaiden Group Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Samaiden Group Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — KLSE:SAMAIDEN Earnings and Revenue Growth January 17th 2025

We note that hedge funds don't have a meaningful investment in Samaiden Group Berhad. The company's CEO Pui Hee Chow is the largest shareholder with 31% of shares outstanding. With 21% and 14% of the shares outstanding respectively, Yeng Foon Fong and Chudenko Corporation are the second and third largest shareholders. Interestingly, the second-largest shareholder, Yeng Foon Fong is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Samaiden Group Berhad

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Samaiden Group Berhad. This gives them effective control of the company. So they have a RM277m stake in this RM515m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Samaiden Group 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

Public companies currently own 14% of Samaiden Group Berhad stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Samaiden Group Berhad better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.