Public companies account for 29% of Sarawak Plantation Berhad's (KLSE:SWKPLNT) ownership, while state or government account for 26%
Simply Wall St
4 min read
Every investor in Sarawak Plantation Berhad (KLSE:SWKPLNT) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 29% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
State or government, on the other hand, account for 26% of the company's stockholders.
Let's delve deeper into each type of owner of Sarawak Plantation Berhad, beginning with the chart below.
KLSE:SWKPLNT Ownership Breakdown January 22nd 2023
What Does The Institutional Ownership Tell Us About Sarawak Plantation 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.
Sarawak Plantation Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Sarawak Plantation Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
KLSE:SWKPLNT Earnings and Revenue Growth January 22nd 2023
We note that hedge funds don't have a meaningful investment in Sarawak Plantation Berhad. The company's largest shareholder is Ta Ann Holdings Berhad, with ownership of 29%. State Of Sarawak is the second largest shareholder owning 26% of common stock, and Urusharta Jamaah Sdn Bhd holds about 4.6% of the company stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Sarawak Plantation 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.
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 some shares in Sarawak Plantation Berhad. In their own names, insiders own RM53m worth of stock in the RM597m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 15% stake in Sarawak Plantation 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
It seems that Private Companies own 6.9%, of the Sarawak Plantation Berhad stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Public Company Ownership
We can see that public companies hold 29% of the Sarawak Plantation Berhad shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
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.
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