private companies who own 55% along with institutions invested in SAM Engineering & Equipment (M) Berhad (KLSE:SAM) saw increase in their holdings value last week

Key Insights

• SAM Engineering & Equipment (M) Berhad's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• Accuron Technologies Limited owns 55% of the company
• 27% of SAM Engineering & Equipment (M) Berhad is held by Institutions

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To get a sense of who is truly in control of SAM Engineering & Equipment (M) Berhad (KLSE:SAM), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Private companies gained the most after market cap touched RM2.3b last week, while institutions who own 27% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about SAM Engineering & Equipment (M) Berhad.

Check out our latest analysis for SAM Engineering & Equipment (M) Berhad

What Does The Institutional Ownership Tell Us About SAM Engineering & Equipment (M) 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.

SAM Engineering & Equipment (M) 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 SAM Engineering & Equipment (M) Berhad's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in SAM Engineering & Equipment (M) Berhad. Looking at our data, we can see that the largest shareholder is Accuron Technologies Limited with 55% 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 5.3% of the shares outstanding respectively, Employees Provident Fund of Malaysia and Public Mutual Bhd. are the second and third largest shareholders.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of SAM Engineering & Equipment (M) 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of SAM Engineering & Equipment (M) Berhad. However, it's possible that insiders might have an indirect interest through a more complex structure. It seems the board members have no more than RM3.2m worth of shares in the RM2.3b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in SAM Engineering & Equipment (M) 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.

Private Company Ownership

We can see that Private Companies own 55%, 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 SAM Engineering & Equipment (M) Berhad better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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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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.