Individual investors own 19% of MKH Oil Palm (East Kalimantan) Berhad (KLSE:MKHOP) shares but public companies control 65% of the company
editorial-team@simplywallst.com (Simply Wall St)
5 min read
Key Insights
MKH Oil Palm (East Kalimantan) Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
65% of the company is held by a single shareholder (MKH Berhad)
To get a sense of who is truly in control of MKH Oil Palm (East Kalimantan) Berhad (KLSE:MKHOP), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 65% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual investors make up 19% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of MKH Oil Palm (East Kalimantan) Berhad.
What Does The Institutional Ownership Tell Us About MKH Oil Palm (East Kalimantan) Berhad?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Institutions have a very small stake in MKH Oil Palm (East Kalimantan) Berhad. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
KLSE:MKHOP Earnings and Revenue Growth April 10th 2025
Hedge funds don't have many shares in MKH Oil Palm (East Kalimantan) Berhad. Our data shows that MKH Berhad is the largest shareholder with 65% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 3.3% of the shares outstanding, followed by an ownership of 2.2% by the third-largest shareholder.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of MKH Oil Palm (East Kalimantan) 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.
We can see that insiders own shares in MKH Oil Palm (East Kalimantan) Berhad. As individuals, the insiders collectively own RM30m worth of the RM600m company. This shows at least some alignment, but we usually like to see larger insider holdings. 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 19% stake in MKH Oil Palm (East Kalimantan) Berhad. 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
We can see that Private Companies own 9.2%, of the shares on issue. 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
It appears to us that public companies own 65% of MKH Oil Palm (East Kalimantan) Berhad. 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 MKH Oil Palm (East Kalimantan) Berhad better, we need to consider many other factors.
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.
