Key Insights

• Insiders appear to have a vested interest in CB Industrial Product Holding Berhad's growth, as seen by their sizeable ownership

• The top 3 shareholders own 51% of the company

• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls CB Industrial Product Holding Berhad (KLSE:CBIP), 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 individual insiders with 65% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of CB Industrial Product Holding Berhad have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

In the chart below, we zoom in on the different ownership groups of CB Industrial Product Holding Berhad.

Check out our latest analysis for CB Industrial Product Holding Berhad

What Does The Institutional Ownership Tell Us About CB Industrial Product Holding Berhad?

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.

CB Industrial Product Holding 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. 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 CB Industrial Product Holding Berhad's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in CB Industrial Product Holding Berhad. The company's CEO Chai Lim is the largest shareholder with 41% of shares outstanding. Chai Guan Lim is the second largest shareholder owning 5.5% of common stock, and Chai Lim holds about 4.7% of the company stock. Interestingly, the third-largest shareholder, Chai Lim is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of CB Industrial Product Holding 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of CB Industrial Product Holding Berhad. This means they can collectively make decisions for the company. Given it has a market cap of RM537m, that means they have RM352m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. 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 26% stake in CB Industrial Product Holding Berhad. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CB Industrial Product Holding Berhad better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.