APM Automotive Holdings Berhad's (KLSE:APM) largest shareholders are private companies with 47% ownership, insiders own 24%
editorial-team@simplywallst.com (Simply Wall St)
5 min read
Key Insights
Significant control over APM Automotive Holdings Berhad by private companies implies that the general public has more power to influence management and governance-related decisions
If you want to know who really controls APM Automotive Holdings Berhad (KLSE:APM), then you'll have to look at the makeup of its share registry. With 47% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And individual insiders on the other hand have a 24% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of APM Automotive Holdings Berhad, beginning with the chart below.
What Does The Institutional Ownership Tell Us About APM Automotive Holdings 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 APM Automotive Holdings Berhad does have institutional investors; and they hold a good portion of the company's stock. 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. 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 APM Automotive Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
KLSE:APM Earnings and Revenue Growth November 29th 2023
Hedge funds don't have many shares in APM Automotive Holdings Berhad. Our data shows that Tan Chong Consolidated Sdn Bhd is the largest shareholder with 38% of shares outstanding. With 8.2% and 7.8% of the shares outstanding respectively, Heng Tan and Wealthmark Holdings Sdn Bhd are the second and third largest shareholders. Heng Tan, who is the second-largest shareholder, also happens to hold the title of President.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of APM Automotive Holdings Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of APM Automotive Holdings Berhad. It has a market capitalization of just RM473m, and insiders have RM114m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. 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 16% stake in APM Automotive Holdings 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 47%, of the APM Automotive Holdings 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.
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.
