Hextar Industries Berhad (KLSE:HEXIND) is a company that attracts significant interest from private companies, according to recent data. These private companies hold a majority 60% ownership of the stock, indicating that they stand to gain the most or lose the most from their investment in the company. On the other hand, individual investors account for 29% of the company’s stockholders.
Institutional investors, which typically indicate a less risky investment, are not prominent among Hextar Industries Berhad’s shareholders. This could be due to various reasons, such as the company being considered too risky, thinly traded, or relatively small. Additionally, if a company hasn’t needed to raise capital, institutions may not have had the opportunity to build a position. Another possibility is that professional investors simply don’t view Hextar Industries Berhad as a promising investment option, possibly due to its past performance or lack of analysis.
One notable shareholder of Hextar Industries Berhad is Hextar Holdings Sdn Bhd., which owns a significant 60% of the company. This indicates that they have considerable influence, if not outright control, over the corporation’s future. The second and third largest shareholders are Ah Chai Ng and Yau Choy Mok, each owning 1.6% of the shares outstanding.
While institutional ownership and analyst coverage are important indicators of a stock’s expected performance, Hextar Industries Berhad appears to be flying under the radar in terms of analyst coverage. This lack of coverage could be attributed to its relatively smaller size or perceived lack of attractiveness as an investment option.
When assessing a company’s ownership, it’s also important to consider insider ownership. In the case of Hextar Industries Berhad, insiders do own shares in the company, with a total value of RM109m. Insider ownership is generally viewed positively as it indicates that the board is aligned with shareholders. However, when too much power is concentrated within this group, it can be a cause for concern.
The general public, including retail investors, holds a 29% stake in Hextar Industries Berhad. While this may not be enough to significantly influence company policies, it does demonstrate that the collective impact of retail investors should not be ignored.
It is worth noting that the 60% ownership by private companies may include related parties. Insiders may have an interest in the company through a holding in a private company, rather than as individuals. This aspect could be a subject for further research.
Considering ownership structure is important when assessing a company, but it should not be the sole determining factor. Other key factors such as investment risk should also be taken into account. In the case of Hextar Industries Berhad, there are 2 warning signs that investors should be aware of. Conducting thorough research and understanding these risks is crucial before making any investment decisions.
In conclusion, although private companies hold the majority of Hextar Industries Berhad’s stock, it is essential to consider other aspects such as institutional ownership, analyst coverage, insider ownership, and the stake held by the general public. These factors contribute to a more comprehensive analysis of the company’s prospects and potential risks.
