Owning 60% in KJTS Group Berhad (KLSE:KJTS) means that insiders are heavily invested in the company's future

editorial-team@simplywallst.com (Simply Wall St)

Tue, Apr 1, 2025, 6:55 PM 4 min read

Key Insights

Significant insider control over KJTS Group Berhad implies vested interests in company growth
The top 2 shareholders own 54% of the company
Institutional ownership in KJTS Group Berhad is 23%

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Every investor in KJTS Group Berhad (KLSE:KJTS) should be aware of the most powerful shareholder groups. With 60% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's delve deeper into each type of owner of KJTS Group Berhad, beginning with the chart below.

View our latest analysis for KJTS Group Berhad

ownership-breakdown — KLSE:KJTS Ownership Breakdown April 2nd 2025

What Does The Institutional Ownership Tell Us About KJTS Group 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.

KJTS Group Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 KJTS Group Berhad, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — KLSE:KJTS Earnings and Revenue Growth April 2nd 2025

KJTS Group Berhad is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Kok Choon Lee with 27% of shares outstanding. Tah Poh Wee is the second largest shareholder owning 27% of common stock, and Boon Siang Yeow holds about 4.9% of the company stock. Interestingly, the second-largest shareholder, Tah Poh Wee is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

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.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of KJTS Group 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.

Our most recent data indicates that insiders own the majority of KJTS Group Berhad. This means they can collectively make decisions for the company. That means they own RM449m worth of shares in the RM744m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in KJTS Group Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 KJTS Group Berhad you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.