With a 64% stake, Tai Sin Electric Limited (SGX:500) insiders have a lot riding on the company

If you want to know who really controls Tai Sin Electric Limited (SGX:500), then you’ll have to look at the makeup of its share registry. The group holding the largest number of shares in the company, around 64% to be precise, are individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So it follows, every decision made by insiders of Tai Sin Electric regarding the company’s future would be crucial to them.

Let’s delve deeper into each type of owner of Tai Sin Electric, starting with the chart below.

View our latest analysis for Tai Sin Electric

ownership-breakdown

What Does The Lack Of Institutional Ownership Tell Us About Tai Sin Electric?

Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. This Sin Electric might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

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Sin Electric is not owned by hedge funds. The company’s CEO Boon Hock Lim is the largest shareholder with 27% of outstanding shares. With 6.6% and 6.3% of the shares outstanding respectively, Chye Huat Lim and Boon Hoh Lim are the second and third largest shareholders.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each other’s interests somewhat.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. 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 Tai Sin Electric

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.

It seems that insiders own more than half the Tai Sin Electric Limited stock. This gives them a lot of power. That means they own S$112m worth of shares in the S$175m company. That’s quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tai Sin Electric. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Tai Sin Electric better, we need to consider many other factors. Be aware that Tai Sin Electric is showing 1 warning sign in our investment analysis you should know about…

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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 into account 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.

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