雅虎香港財經 While individual investors own 28% of Duopharma Biotech Berhad (KLSE:DPHARMA), sovereign wealth funds are its largest shareholders with 51% ownership
Key Insights
The considerable ownership by sovereign wealth funds in Duopharma Biotech Berhad indicates that they collectively have a greater say in management and business strategy
The largest shareholder of the company is Permodalan Nasional Berhad with a 51% stake
To get a sense of who is truly in control of Duopharma Biotech Berhad (KLSE:DPHARMA), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 51% to be precise, is sovereign wealth funds. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And individual investors on the other hand have a 28% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Duopharma Biotech Berhad.
Check out our latest analysis for Duopharma Biotech Berhad
What Does The Institutional Ownership Tell Us About Duopharma Biotech 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.
Duopharma Biotech Berhad 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 Duopharma Biotech Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.
Duopharma Biotech Berhad is not owned by hedge funds. The company's largest shareholder is Permodalan Nasional Berhad, with ownership of 51%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 8.6% of the shares outstanding, followed by an ownership of 1.9% by the third-largest shareholder.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Duopharma Biotech 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. 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.
Our most recent data indicates that insiders own less than 1% of Duopharma Biotech Berhad. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about RM3.1m worth of stock. This compares to a market capitalization of RM1.1b. Many investors in smaller companies prefer to see the board more heavily invested. 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 28% stake in Duopharma Biotech Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Duopharma Biotech Berhad (1 is a bit unpleasant) that you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
