Ajinomoto (Malaysia) Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
Ajinomoto Co., Inc. owns 50% of the company
Institutional ownership in Ajinomoto (Malaysia) Berhad is 17%
Every investor in Ajinomoto (Malaysia) Berhad (KLSE:AJI) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 50% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).
Individual investors, on the other hand, account for 25% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about Ajinomoto (Malaysia) Berhad.
View our latest analysis for Ajinomoto (Malaysia) Berhad
KLSE:AJI Ownership Breakdown January 16th 2024
What Does The Institutional Ownership Tell Us About Ajinomoto (Malaysia) 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.
As you can see, institutional investors have a fair amount of stake in Ajinomoto (Malaysia) Berhad. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Ajinomoto (Malaysia) Berhad's earnings history below. Of course, the future is what really matters.
KLSE:AJI Earnings and Revenue Growth January 16th 2024
Ajinomoto (Malaysia) Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Ajinomoto Co., Inc. with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 3.8% and 3.0% of the stock.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Ajinomoto (Malaysia) Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
We can report that insiders do own shares in Ajinomoto (Malaysia) Berhad. As individuals, the insiders collectively own RM36m worth of the RM976m company. This shows at least some alignment. 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 25% stake in Ajinomoto (Malaysia) 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.
Private Company Ownership
It seems that Private Companies own 4.6%, of the Ajinomoto (Malaysia) Berhad stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
We can see that public companies hold 50% of the Ajinomoto (Malaysia) Berhad shares on issue. 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:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Ajinomoto (Malaysia) Berhad you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.
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.
