Thong Guan Industries Berhad's (KLSE:TGUAN) largest shareholders are private companies with 40% ownership, individual investors own 32%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Thong Guan Industries Berhad's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
If you want to know who really controls Thong Guan Industries Berhad (KLSE:TGUAN), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 40% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Individual investors, on the other hand, account for 32% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about Thong Guan Industries Berhad.
What Does The Institutional Ownership Tell Us About Thong Guan Industries Berhad?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Thong Guan Industries Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Thong Guan Industries Berhad, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:TGUAN Earnings and Revenue Growth November 19th 2023
Hedge funds don't have many shares in Thong Guan Industries Berhad. Our data shows that Foremost Equals Sdn Bhd is the largest shareholder with 38% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.9% and 3.6% of the stock. Additionally, the company's CEO Poon Ang directly holds 0.9% of the total shares outstanding.
Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Thong Guan 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.
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.
Our most recent data indicates that insiders own some shares in Thong Guan Industries Berhad. As individuals, the insiders collectively own RM30m worth of the RM743m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. 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
We can see that Private Companies own 40%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Thong Guan 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 Thong Guan Industries Berhad .
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.
