Malaysian Pacific Industries Berhad's (KLSE:MPI) market cap touched RM3.7b last week, benefiting both private companies who own 58% as well as institutions

Key Insights

• The considerable ownership by private companies in Malaysian Pacific Industries Berhad indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Hong Leong Company (Malaysia) Berhad (Hlcm) with a 58% stake
• 27% of Malaysian Pacific Industries Berhad is held by Institutions

If you want to know who really controls Malaysian Pacific Industries Berhad (KLSE:MPI), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 58% to be precise, is private companies. 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 RM3.7b last week, while institutions who own 27% also benefitted.

In the chart below, we zoom in on the different ownership groups of Malaysian Pacific Industries Berhad.

View our latest analysis for Malaysian Pacific Industries Berhad

What Does The Institutional Ownership Tell Us About Malaysian Pacific Industries Berhad?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Malaysian Pacific Industries Berhad. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Pacific Industries Berhad, (below). Of course, keep in mind that there are other factors to consider, too.

Malaysian Pacific Industries Berhad is not owned by hedge funds. Hong Leong Company (Malaysia) Berhad (Hlcm) is currently the company's largest shareholder with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 8.8% and 2.9% of the stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Malaysian Pacific Industries 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.

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.

We can see that insiders own shares in Malaysian Pacific Industries Berhad. As individuals, the insiders collectively own RM53m worth of the RM3.7b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Malaysian Pacific Industries 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

Our data indicates that Private Companies hold 58%, of the company's shares. 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 Malaysian Pacific Industries 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 find historic revenue and earnings in this detailed graph.

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.