Key Insights
Significant control over Duopharma Biotech Berhad by sovereign wealth funds implies that the general public has more power to influence management and governance-related decisions
The largest shareholder of the company is Permodalan Nasional Berhad with a 51% stake
If you want to know who really controls Duopharma Biotech Berhad (KLSE:DPHARMA), then you’ll have to look at the makeup of its share registry. With 51% stake, sovereign wealth funds possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual investors make up 26% of the company’s shareholders.
Let’s delve deeper into each type of owner of Duopharma Biotech Berhad, beginning with the chart below.
See our latest analysis for Duopharma Biotech Berhad
What Does The Institutional Ownership Tell Us About Duopharma Biotech 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.
We can see that Duopharma Biotech Berhad does have institutional investors; and they hold a good portion of the company’s stock. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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. Permodalan Nasional Berhad is currently the largest shareholder, with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 8.4% and 4.0% of the shares outstanding respectively, Employees Provident Fund of Malaysia and Lembaga Tabung Haji, Endowment Arm are the second and third largest shareholders.
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 Duopharma Biotech Berhad
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
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 seems the board members have no more than RM4.1m worth of shares in the RM1.3b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Duopharma Biotech 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 Duopharma Biotech Berhad better, we need to consider many other factors. Case in point: We’ve spotted 3 warning signs for Duopharma Biotech Berhad you should be aware of, and 1 of them shouldn’t be ignored.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
