While institutions own 17% of Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY), private companies are its largest shareholders with 51% ownership
Key Insights
The considerable ownership by private companies in Mr D.I.Y. Group (M) Berhad indicates that they collectively have a greater say in management and business strategy
Bee Family Limited owns 51% of the company
A look at the shareholders of Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And institutions on the other hand have a 17% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's take a closer look to see what the different types of shareholders can tell us about Mr D.I.Y. Group (M) Berhad.
Check out our latest analysis for Mr D.I.Y. Group (M) Berhad
What Does The Institutional Ownership Tell Us About Mr D.I.Y. Group (M) 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.
As you can see, institutional investors have a fair amount of stake in Mr D.I.Y. Group (M) 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. 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 Mr D.I.Y. Group (M) Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
Mr D.I.Y. Group (M) Berhad is not owned by hedge funds. Our data shows that Bee Family Limited is the largest shareholder with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 5.4% and 3.9% of the shares outstanding respectively, Employees Provident Fund of Malaysia and Yew Tan are the second and third largest shareholders. Furthermore, CEO Chu Ong is the owner of 0.6% of the company's shares.
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 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 Mr D.I.Y. Group (M) 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.
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 Mr D.I.Y. Group (M) Berhad. Insiders own RM2.2b worth of shares in the RM14b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 15% stake in the company, and hence can't easily be ignored. 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
We can see that Private Companies own 51%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Mr D.I.Y. Group (M) Berhad better, we need to consider many other factors.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report 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.