With 44% ownership, SKP Resources Bhd (KLSE:SKPRES) has piqued the interest of institutional investors
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Institutions' substantial holdings in SKP Resources Bhd implies that they have significant influence over the company's share price
53% of the business is held by the top 4 shareholders
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of SKP Resources Bhd (KLSE:SKPRES) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's delve deeper into each type of owner of SKP Resources Bhd, beginning with the chart below.
See our latest analysis for SKP Resources Bhd
KLSE:SKPRES Ownership Breakdown March 18th 2024
What Does The Institutional Ownership Tell Us About SKP Resources Bhd?
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 SKP Resources Bhd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 SKP Resources Bhd's earnings history below. Of course, the future is what really matters.
KLSE:SKPRES Earnings and Revenue Growth March 18th 2024
We note that hedge funds don't have a meaningful investment in SKP Resources Bhd. Our data shows that Estate Of Gan Kim Huat is the largest shareholder with 29% of shares outstanding. The second and third largest shareholders are Kumpulan Wang Persaraan and Employees Provident Fund of Malaysia, with an equal amount of shares to their name at 9.0%. Furthermore, CEO Poh Gan is the owner of 5.0% of the company's shares.
Our research also brought to light the fact that roughly 53% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of SKP Resources Bhd
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in SKP Resources Bhd. As individuals, the insiders collectively own RM68m worth of the RM1.4b 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 16% stake in SKP Resources Bhd. 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 35%, 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 SKP Resources Bhd better, we need to consider many other factors. Be aware that SKP Resources Bhd is showing 2 warning signs in our investment analysis , you should know about...
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
