WEBULL

Private companies among OSK Holdings Berhad's (KLSE:OSK) largest stockholders and were hit after last week's 10% price drop

Simply Wall St · 04/07 22:40

Key Insights

  • The considerable ownership by private companies in OSK Holdings Berhad indicates that they collectively have a greater say in management and business strategy
  • Yellow Rock (L) Foundation owns 50% of the company
  • Insider ownership in OSK Holdings Berhad is 14%

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Every investor in OSK Holdings Berhad (KLSE:OSK) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 50% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, private companies endured the biggest losses as the stock fell by 10%.

Let's take a closer look to see what the different types of shareholders can tell us about OSK Holdings Berhad.

See our latest analysis for OSK Holdings Berhad

ownership-breakdown
KLSE:OSK Ownership Breakdown April 7th 2025

What Does The Institutional Ownership Tell Us About OSK Holdings 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 OSK Holdings Berhad does have institutional investors; and they hold a good portion of the company's stock. 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 OSK Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KLSE:OSK Earnings and Revenue Growth April 7th 2025

OSK Holdings Berhad is not owned by hedge funds. Yellow Rock (L) Foundation is currently the largest shareholder, with 50% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Leong Ong is the second largest shareholder owning 3.2% of common stock, and Ean Hai Toh holds about 2.0% of the company stock. Leong Ong, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Ju Ong is the owner of 1.3% of the company's shares.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of OSK Holdings Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

It seems insiders own a significant proportion of OSK Holdings Berhad. Insiders own RM470m worth of shares in the RM3.3b company. 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 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over OSK Holdings Berhad. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 50%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 example, we've discovered 2 warning signs for OSK Holdings Berhad (1 shouldn't be ignored!) that you should be aware of before investing here.

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.