What Type Of Shareholders Make Up Malaysian Resources Corporation Berhad's (KLSE:MRCB) Share Registry?

By
Simply Wall St
Published
May 20, 2021
KLSE:MRCB
Source: Shutterstock

If you want to know who really controls Malaysian Resources Corporation Berhad (KLSE:MRCB), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Malaysian Resources Corporation Berhad is a smaller company with a market capitalization of RM1.9b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Malaysian Resources Corporation Berhad.

Check out our latest analysis for Malaysian Resources Corporation Berhad

ownership-breakdown
KLSE:MRCB Ownership Breakdown May 21st 2021

What Does The Institutional Ownership Tell Us About Malaysian Resources Corporation 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 Malaysian Resources Corporation Berhad does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Malaysian Resources Corporation Berhad, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
KLSE:MRCB Earnings and Revenue Growth May 21st 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Malaysian Resources Corporation Berhad is not owned by hedge funds. Employees Provident Fund of Malaysia is currently the largest shareholder, with 36% of shares outstanding. With 16% and 5.9% of the shares outstanding respectively, Gapurna Sdn. Bhd. and Lembaga Tabung Haji, Endowment Arm are the second and third largest shareholders.

To make our study more interesting, we found that the top 2 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Malaysian Resources Corporation 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.

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.

Our most recent data indicates that insiders own less than 1% of Malaysian Resources Corporation Berhad. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It seems the board members have no more than RM319k worth of shares in the RM1.9b company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public holds a 25% stake in Malaysian Resources Corporation Berhad. 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

It seems that Private Companies own 15%, of the Malaysian Resources Corporation Berhad stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Malaysian Resources Corporation Berhad better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Malaysian Resources Corporation Berhad you should be aware of, and 1 of them makes us a bit uncomfortable.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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