Public companies account for 76% of Lotte Chemical Titan Holding Berhad's (KLSE:LCTITAN) ownership, while individual investors account for 16%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Lotte Chemical Titan Holding Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
76% of the company is held by a single shareholder (Lotte Chemical Corporation)
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
A look at the shareholders of Lotte Chemical Titan Holding Berhad (KLSE:LCTITAN) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 76% 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 16% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Lotte Chemical Titan Holding Berhad.
KLSE:LCTITAN Ownership Breakdown November 3rd 2024
What Does The Institutional Ownership Tell Us About Lotte Chemical Titan Holding 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.
As you can see, institutional investors have a fair amount of stake in Lotte Chemical Titan Holding Berhad. 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. 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 Lotte Chemical Titan Holding Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
KLSE:LCTITAN Earnings and Revenue Growth November 3rd 2024
Lotte Chemical Titan Holding Berhad is not owned by hedge funds. Lotte Chemical Corporation is currently the largest shareholder, with 76% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 2.6% and 0.8%, of the shares outstanding, respectively.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Lotte Chemical Titan Holding Berhad
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to learn that insiders own shares in Lotte Chemical Titan Holding Berhad. In their own names, insiders own RM37m worth of stock in the RM2.2b 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 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Lotte Chemical Titan Holding 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.
Public Company Ownership
We can see that public companies hold 76% of the Lotte Chemical Titan Holding Berhad shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Lotte Chemical Titan Holding Berhad , and understanding them should be part of your investment process.
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.
