Insiders own 34% of Kimlun Corporation Berhad (KLSE:KIMLUN) shares but private companies control 37% of the company
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Kimlun Corporation Berhad's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
A total of 3 investors have a majority stake in the company with 52% ownership
Every investor in Kimlun Corporation Berhad (KLSE:KIMLUN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 37% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And individual insiders on the other hand have a 34% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
In the chart below, we zoom in on the different ownership groups of Kimlun Corporation Berhad.
What Does The Institutional Ownership Tell Us About Kimlun Corporation 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.
Institutions have a very small stake in Kimlun Corporation 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. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. 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:KIMLUN Earnings and Revenue Growth November 4th 2024
Kimlun Corporation Berhad is not owned by hedge funds. Our data shows that Phin Sdn Bhd is the largest shareholder with 37% of shares outstanding. Tin Pang is the second largest shareholder owning 9.0% of common stock, and Khang Pang holds about 6.0% of the company stock. Two of the top three shareholders happen to be Top Key Executive and Member of the Board of Directors, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders. Additionally, the company's CEO Tian Sim directly holds 2.6% of the total shares outstanding.
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 52% 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Kimlun Corporation Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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.
Our most recent data indicates that insiders own a reasonable proportion of Kimlun Corporation Berhad. It has a market capitalization of just RM484m, and insiders have RM166m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 24% stake in Kimlun Corporation 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 37%, of the Kimlun Corporation 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.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
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.
