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Retail investors who hold 48% of SNS Network Technology Berhad (KLSE:SNS) gained 11%, insiders profited as well

Simply Wall St · 03/19 23:28

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To get a sense of who is truly in control of SNS Network Technology Berhad (KLSE:SNS), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that reaped the most benefits after last week’s 11% price gain, insiders also received a 44% cut.

Let's delve deeper into each type of owner of SNS Network Technology Berhad, beginning with the chart below.

See our latest analysis for SNS Network Technology Berhad

ownership-breakdown
KLSE:SNS Ownership Breakdown March 19th 2025

What Does The Institutional Ownership Tell Us About SNS Network Technology Berhad?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that SNS Network Technology Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 SNS Network Technology Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KLSE:SNS Earnings and Revenue Growth March 19th 2025

Hedge funds don't have many shares in SNS Network Technology Berhad. From our data, we infer that the largest shareholder is Wai Onn Pah (who also holds the title of Head of Marketing) with 29% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. For context, the second largest shareholder holds about 8.4% of the shares outstanding, followed by an ownership of 5.6% by the third-largest shareholder. Interestingly, the second-largest shareholder, Wei Ming Siow is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders. In addition, we found that Yun Hung Ko, the CEO has 4.4% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. 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 SNS Network Technology 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. 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.

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 a reasonable proportion of SNS Network Technology Berhad. It has a market capitalization of just RM737m, and insiders have RM322m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SNS Network Technology Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - SNS Network Technology Berhad has 2 warning signs (and 1 which is potentially serious) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.