Public companies account for 46% of CSC Steel Holdings Berhad's (KLSE:CSCSTEL) ownership, while individual investors account for 39%

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

Wed, Mar 20, 2024, 12:06 AM 4 min read

Significant control over CSC Steel Holdings Berhad by public companies implies that the general public has more power to influence management and governance-related decisions
A total of 3 investors have a majority stake in the company with 51% ownership
Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of CSC Steel Holdings Berhad (KLSE:CSCSTEL) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 39% of the company’s shareholders.

Let's delve deeper into each type of owner of CSC Steel Holdings Berhad, beginning with the chart below.

View our latest analysis for CSC Steel Holdings Berhad

ownership-breakdown — KLSE:CSCSTEL Ownership Breakdown March 20th 2024

What Does The Institutional Ownership Tell Us About CSC Steel Holdings 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.

Less than 5% of CSC Steel Holdings Berhad is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth — KLSE:CSCSTEL Earnings and Revenue Growth March 20th 2024

We note that hedge funds don't have a meaningful investment in CSC Steel Holdings Berhad. Our data shows that China Steel Corporation is the largest shareholder with 46% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 3.3% and 1.3%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of CSC Steel Holdings Berhad

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 see that insiders own shares in CSC Steel Holdings Berhad. In their own names, insiders own RM42m worth of stock in the RM499m 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-- including retail investors -- own 39% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

It appears to us that public companies own 46% of CSC Steel 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for CSC Steel Holdings Berhad that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.