Formosa Prosonic Industries Berhad (KLSE:FPI) stock most popular amongst individual investors who own 41%, while public companies hold 29%

editorial-team@simplywallst.com (Simply Wall St)

Tue, Dec 26, 2023, 10:27 PM 4 min read

Key Insights

Formosa Prosonic Industries Berhad's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
51% of the business is held by the top 12 shareholders
Insiders own 21% of Formosa Prosonic Industries Berhad

To get a sense of who is truly in control of Formosa Prosonic Industries Berhad (KLSE:FPI), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, public companies make up 29% of the company’s shareholders.

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

See our latest analysis for Formosa Prosonic Industries Berhad

ownership-breakdown — KLSE:FPI Ownership Breakdown December 27th 2023

What Does The Institutional Ownership Tell Us About Formosa Prosonic 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.

Formosa Prosonic Industries Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Formosa Prosonic Industries Berhad, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — KLSE:FPI Earnings and Revenue Growth December 27th 2023

Hedge funds don't have many shares in Formosa Prosonic Industries Berhad. Looking at our data, we can see that the largest shareholder is Wistron Corporation with 27% of shares outstanding. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 3.2% by the third-largest shareholder. Chao Yuan Shih, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Formosa Prosonic Industries 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.

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.

It seems insiders own a significant proportion of Formosa Prosonic Industries Berhad. It has a market capitalization of just RM727m, and insiders have RM152m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in Formosa Prosonic Industries Berhad. 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

Public companies currently own 29% of Formosa Prosonic Industries Berhad stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Formosa Prosonic Industries Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Formosa Prosonic Industries Berhad .

Of course this may not be the best stock to buy. So take a peek at this free 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.

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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.