A look at the shareholders of MKH Berhad (KLSE:MKH) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 33% of the company’s shareholders.
Let's delve deeper into each type of owner of MKH Berhad, beginning with the chart below.
View our latest analysis for MKH Berhad
What Does The Institutional Ownership Tell Us About MKH 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 MKH Berhad. 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. 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 MKH Berhad's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in MKH Berhad. Our data shows that Chen Choy & Sons Realty Sdn Bhd is the largest shareholder with 41% of shares outstanding. Public Mutual Berhad is the second largest shareholder owning 9.2% of common stock, and Kooi Chen holds about 3.0% of the company stock. Kooi Chen, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Lok Chen directly holds 1.8% of the total shares outstanding.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of MKH Berhad
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.