key insights
Mr DIY Group (M) Berhad’s significant ownership in private companies suggests that important decisions are influenced by shareholders in the general public The company’s largest shareholder is Bee Family Limited, which holds Insider ownership in Mr DIY Group (M) Berhad is 15%.
If you want to know who really controls Mr. DIY Group (M) Berhad (KLSE:MRDIY), then you’ll have to look at the makeup of its share registry. With 50% of the shares, private companies hold the largest stake in the company. In other words, this group faces the greatest upside potential (or downside risk).
Meanwhile, institutional investors account for 19% of the company’s shareholders. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies.
Let’s take a closer look to see what the different types of shareholders can tell us about Mr DIY Group (M) Berhad.
Check out our latest analysis for Mr DIY Group (M) Berhad.
KLSE:MRDIY Ownership Breakdown October 21, 2024
What does ownership of the facility tell us about DIY Group (M) Mr. Berhad?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
We can see that DIY Group (M) Berhad does have institutional investors. And they own a significant portion of the company’s stock. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Mr DIY Group (M) Berhad’s historic earnings and revenue below, but keep in mind there’s always more to the story.
KLSE:MRDIY Earnings and Revenue Growth October 21, 2024
We note that hedge funds don’t have a meaningful investment in Mr. DIY Group (M) Berhad. Bee Family Limited is currently the largest shareholder with 50% of the outstanding shares. This essentially means that they have extensive influence, if not complete control, over the future of the company. For context, the second largest shareholder holds about 6.9% of the shares outstanding, followed by an ownership of 3.9% by the third largest shareholder. Additionally, the company’s CEO Chu Ong directly holds 0.5% of the total outstanding shares.
Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same thing can be accomplished by studying analyst sentiment. There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership in Mr DIY Group (M) Berhad
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
It appears that insiders own a significant portion of Mister DIY Group (M) Berhad. It’s very interesting to see that insiders own RM3.1b worth of shares in this RM21b business. Most would say this shows good alignment with shareholders, especially for a company of this size. You can click here to see if insiders have been buying or selling.
Open to the public
Members of the public, typically retail investors, hold 15% of Mr. DIY Group (M) Berhad’s shares. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
It appears that private companies own 50% of Mr DIY Group (M) Berhad. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. For example, consider the ever-present fear of investment risk. We’ve identified 1 warning sign with Mr DIY Group (M) Berhad. Understanding them should be part of your investment process.
After all, the future is what matters most. Access this free report on analyst forecasts for the company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
