Key Insights
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Significant control over Dayang Enterprise Holdings Bhd by individual investors implies that the general public has more power to influence management and governance-related decisions
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The top 8 shareholders own 51% of the company
If you want to know who really controls Dayang Enterprise Holdings Bhd (KLSE:DAYANG), then you’ll have to look at the makeup of its share registry. With 32% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While the holdings of individual investors took a hit after last week’s 7.9% price drop, institutions with their 28% holdings also suffered.
Let’s take a closer look to see what the different types of shareholders can tell us about Dayang Enterprise Holdings Bhd.
See our latest analysis for Dayang Enterprise Holdings Bhd
What Does The Institutional Ownership Tell Us About Dayang Enterprise Holdings Bhd?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Dayang Enterprise Holdings Bhd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Dayang Enterprise Holdings Bhd’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Hedge funds don’t have many shares in Dayang Enterprise Holdings Bhd. Naim Holdings Berhad is currently the largest shareholder, with 24% of shares outstanding. With 8.9% and 3.8% of the shares outstanding respectively, Suk Ling and Siew Ling are the second and third largest shareholders. Interestingly, the bottom two of the top three shareholders also hold the title of Senior Key Executive and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company. In addition, we found that Yusof Bin Ahmad Shahruddin, the CEO has 3.0% of the shares allocated to their name.
On further inspection, we found that more than half the company’s shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Dayang Enterprise Holdings 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. 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 a reasonable proportion of Dayang Enterprise Holdings Bhd. Insiders own RM407m worth of shares in the RM2.6b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. 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 32% stake in Dayang Enterprise Holdings Bhd. 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 24% of Dayang Enterprise Holdings Bhd stock. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we’ve spotted 2 warning signs for Dayang Enterprise Holdings Bhd (of which 1 can’t be ignored!) 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.
