Public companies are P.I.E. Industrial Berhad's (KLSE:PIE) biggest owners and were rewarded after market cap rose by RM430m last week
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
P.I.E. Industrial Berhad's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
The largest shareholder of the company is Pan-International Industrial Corp. with a 51% stake
To get a sense of who is truly in control of P.I.E. Industrial Berhad (KLSE:PIE), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Clearly, public companies benefitted the most after the company's market cap rose by RM430m last week.
Let's take a closer look to see what the different types of shareholders can tell us about P.I.E. Industrial Berhad.
What Does The Institutional Ownership Tell Us About P.I.E. Industrial 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.
P.I.E. Industrial 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at P.I.E. Industrial Berhad's earnings history below. Of course, the future is what really matters.
KLSE:PIE Earnings and Revenue Growth April 18th 2024
Hedge funds don't have many shares in P.I.E. Industrial Berhad. Looking at our data, we can see that the largest shareholder is Pan-International Industrial Corp. with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 6.1% and 5.5% of the shares outstanding respectively, Yoke Fong Wong and Public Mutual Bhd. are the second and third largest shareholders. Additionally, the company's CEO Chung Mui directly holds 0.6% of the total shares outstanding.
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 P.I.E. Industrial 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in P.I.E. Industrial Berhad. In their own names, insiders own RM190m worth of stock in the RM1.9b 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 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over P.I.E. Industrial Berhad. 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
Public companies currently own 51% of P.I.E. Industrial Berhad stock. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand P.I.E. Industrial Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with P.I.E. Industrial Berhad .
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.
