Oriental Holdings Berhad's (KLSE:ORIENT) top owners are private companies with 59% stake, while 18% is held by individual investors
Simply Wall St
4 min read
Key Insights
The considerable ownership by private companies in Oriental Holdings Berhad indicates that they collectively have a greater say in management and business strategy
53% of the business is held by the top 2 shareholders
A look at the shareholders of Oriental Holdings Berhad (KLSE:ORIENT) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual investors on the other hand have a 18% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Oriental Holdings Berhad.
What Does The Institutional Ownership Tell Us About Oriental Holdings Berhad?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Oriental Holdings Berhad does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Oriental Holdings Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:ORIENT Earnings and Revenue Growth July 21st 2023
Hedge funds don't have many shares in Oriental Holdings Berhad. Boon Siew Sdn Bhd is currently the company's largest shareholder with 44% of shares outstanding. Employees Provident Fund of Malaysia is the second largest shareholder owning 8.8% of common stock, and Penang Yellow Bus Company Bhd holds about 5.3% of the company stock. Additionally, the company's CEO Su Tong Lim directly holds 1.9% of the total shares outstanding.
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.
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 Oriental Holdings Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
We can report that insiders do own shares in Oriental Holdings Berhad. In their own names, insiders own RM257m worth of stock in the RM3.9b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Oriental Holdings 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.
Private Company Ownership
We can see that Private Companies own 59%, 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 4.0% of Oriental Holdings 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.
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.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
