key insights
To understand who really controls Dufu Technology Corp. Berhad (KLSE:DUFU), it's important to understand the business' ownership structure. And the group with the biggest slice of the pie are individual insiders with a 35% ownership. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
So it follows that every decision Dufu Technology Berhad insiders make about the future of the company is very important to them.
The chart below zooms in on the different ownership groups for Dufu Technology Berhad.
Check out our latest analysis for Dufu Technology Berhad.
What does institutional ownership tell us about Dufu Technology Berhad?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
Dufu Technology Berhad already has a share registry. In fact, they own a significant stake in the company. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes misunderstand. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking Dufu Technology Berhad's past earnings trajectory, (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don't have many shares in Dufu Technology Berhad. According to our data, his Hui-Ta Lee, who is also the company's top executive, holds the most shares at 23%. Investors consider it a positive sign when insiders own a significant amount of shares in a company. This is because it suggests that insiders are willing to tie their wealth to the company's future. Meanwhile, the second and third largest shareholders hold 9.6% and 5.0% of the shares outstanding, respectively.
We also observed that the top 7 shareholders account for more than half of the shareholder registry, with a few small shareholders balancing the interests of the large shareholders to some extent.
Researching institutional ownership is a good way to assess and filter a stock's expected performance. The same can be done by studying analyst sentiment. There is currently no analyst coverage of this stock, so this company is unlikely to be widely held.
Insider ownership in Dufu Technology Berhad
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
Insider ownership is positive when it signals leaders are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative depending on the situation.
Our most recent data indicates that insiders own a significant proportion of Dufu Technology Corp. Berhad. It has a market capitalization of just RM1.2b, but insiders have RM414m worth of shares in their own names. This could suggest that the founders still own a large number of shares. Click here to see if they are buying or selling.
Open to the public
With an ownership of 34%, the general public, consisting mainly of retail investors, has some influence over Dufu Technology Berhad. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Private company ownership
Our data shows that Private companies own 11%, of the company's shares. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
Next steps:
It's always worth thinking about the different groups who own shares in a company. However, to understand Dufu Technology Berhad better, you need to consider many other factors. For example, we discovered that 2 warning signs for Dufu Technology Berhad (1 is not very good to us!) Here's what you need to know before investing.
of course This may not be the best stock to buy.So take a look at this free free List of interesting companies.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
