Lim Seong Hai Capital Berhad's (KLSE:LSH) market cap surged RM285m last week, private companies who have a lot riding on the company were rewarded

Key Insights

• The considerable ownership by private companies in Lim Seong Hai Capital Berhad indicates that they collectively have a greater say in management and business strategy
• Lim Seong Hai Holdings Sdn Bhd owns 59% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

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A look at the shareholders of Lim Seong Hai Capital Berhad (KLSE:LSH) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by RM285m last week.

In the chart below, we zoom in on the different ownership groups of Lim Seong Hai Capital Berhad.

View our latest analysis for Lim Seong Hai Capital Berhad

What Does The Institutional Ownership Tell Us About Lim Seong Hai Capital 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.

Institutions have a very small stake in Lim Seong Hai Capital Berhad. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Lim Seong Hai Capital Berhad is not owned by hedge funds. Lim Seong Hai Holdings Sdn Bhd is currently the largest shareholder, with 59% of shares outstanding. This implies that they have majority interest control of the future of the company. Norges Bank Investment Management is the second largest shareholder owning 2.9% of common stock, and Pak Lim holds about 1.8% of the company stock. Pak Lim, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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 Lim Seong Hai Capital 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. 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 most recent data indicates that insiders own some shares in Lim Seong Hai Capital Berhad. As individuals, the insiders collectively own RM152m worth of the RM2.0b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Lim Seong Hai Capital 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

We can see that Private Companies own 59%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Lim Seong Hai Capital Berhad better, we need to consider many other factors. Be aware that Lim Seong Hai Capital Berhad is showing 2 warning signs in our investment analysis , you should know about...

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.