While individual investors own 19% of NCT Alliance Berhad (KLSE:NCT), private companies are its largest shareholders with 59% ownership
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by private companies in NCT Alliance Berhad indicates that they collectively have a greater say in management and business strategy
YBG Yap Consolidated Sdn. Bhd. owns 50% of the company
To get a sense of who is truly in control of NCT Alliance Berhad (KLSE:NCT), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 59% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 19% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about NCT Alliance Berhad.
What Does The Institutional Ownership Tell Us About NCT Alliance 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.
We can see that NCT Alliance Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 NCT Alliance Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:NCT Earnings and Revenue Growth November 26th 2024
NCT Alliance Berhad is not owned by hedge funds. Our data shows that YBG Yap Consolidated Sdn. Bhd. is the largest shareholder with 50% 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 6.6% and 4.3% of the shares outstanding respectively, Kenanga Investors Bhd. and Haw Chiau are the second and third largest shareholders. Additionally, the company's CEO Ngan Yap directly holds 1.7% of the total shares outstanding.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of NCT Alliance 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. 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.
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.
Our most recent data indicates that insiders own a reasonable proportion of NCT Alliance Berhad. It has a market capitalization of just RM856m, and insiders have RM122m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 19% 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.
Private Company Ownership
Our data indicates that Private Companies hold 59%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
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. To that end, you should be aware of the 1 warning sign we've spotted with NCT Alliance 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.
