CEO Kok Choon Lee, KJTS Group Berhad's (KLSE:KJTS) largest shareholder sees value of holdings go down 19% after recent drop

Key Insights

• Significant insider control over KJTS Group Berhad implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 54% ownership
• Institutions own 23% of KJTS Group Berhad

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A look at the shareholders of KJTS Group Berhad (KLSE:KJTS) can tell us which group is most powerful. With 60% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by RM141m.

Let's take a closer look to see what the different types of shareholders can tell us about KJTS Group Berhad.

View our latest analysis for KJTS Group Berhad

What Does The Institutional Ownership Tell Us About KJTS Group 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.

KJTS Group 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 KJTS Group Berhad's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in KJTS Group Berhad. With a 27% stake, CEO Kok Choon Lee is the largest shareholder. Tah Poh Wee is the second largest shareholder owning 27% of common stock, and Boon Siang Yeow holds about 4.9% of the company stock. Interestingly, the second-largest shareholder, Tah Poh Wee is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top 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 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of KJTS Group Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders own more than half of KJTS Group Berhad. This gives them effective control of the company. So they have a RM363m stake in this RM603m business. 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 16% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand KJTS Group Berhad better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with KJTS Group Berhad (including 1 which is potentially serious) .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.