Stock Analysis

Public companies among Lippo Malls Indonesia Retail Trust's (SGX:D5IU) largest shareholders, saw gain in holdings value after stock jumped 16% last week

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A look at the shareholders of Lippo Malls Indonesia Retail Trust (SGX:D5IU) can tell us which group is most powerful. With 47% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by S$38m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Lippo Malls Indonesia Retail Trust.

View our latest analysis for Lippo Malls Indonesia Retail Trust

SGX:D5IU Ownership Breakdown February 3rd 2023

What Does The Institutional Ownership Tell Us About Lippo Malls Indonesia Retail Trust?

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 Lippo Malls Indonesia Retail Trust. 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 Lippo Malls Indonesia Retail Trust, (below). Of course, keep in mind that there are other factors to consider, too.

SGX:D5IU Earnings and Revenue Growth February 3rd 2023

We note that hedge funds don't have a meaningful investment in Lippo Malls Indonesia Retail Trust. PT Lippo Karawaci Tbk is currently the company's largest shareholder with 47% of shares outstanding. With 11% and 1.2% of the shares outstanding respectively, Tokyo Century Corporation, Asset Management Arm and Dimensional Fund Advisors LP 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 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 Lippo Malls Indonesia Retail Trust

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.

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 Lippo Malls Indonesia Retail Trust insiders own under 1% of the company. It has a market capitalization of just S$285m, and the board has only S$2.4m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 47% of the Lippo Malls Indonesia Retail Trust shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Lippo Malls Indonesia Retail Trust better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Lippo Malls Indonesia Retail Trust you should be aware of, and 1 of them shouldn't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Lippo Malls Indonesia Retail Trust is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About SGX:D5IU

Lippo Malls Indonesia Retail Trust

LMIR Trust is a Singapore-based real estate investment trust established with the principal investment objective of owning and investing, on a long-term basis, in a diversified portfolio of income-producing real estate in Indonesia that are primarily used for retail and/or retail-related purposes.

Fair value second-rate dividend payer.