3 Companies with Significant Insider Ownership of more than 50%

In our previous article, we identified 3 such companies. In this article, we will be looking at another 3 companies with the same characteristics.

1) Hyphens Pharma International Limited (SGX: 1J5)

Hyphens Pharma International Limited (“Hyphens Pharma”) is Singapore’s leading specialty pharmaceutical and consumer healthcare group leveraging on its diverse footprint in ASEAN countries. The Group has a direct presence in Singapore, Vietnam, Malaysia, Indonesia and the Philippines, and is supplemented by a marketing and distribution network covering 10 other markets – Bangladesh, Brunei, Cambodia, China, Hong Kong S.A.R., Macau S.A.R., Myanmar, Oman, South Korea and Sri Lanka.

The largest shareholder for Hyphens Pharma belongs to Mr. Lim See Wah, who has a 39.88% stake in the company. He is the Founder, Chairman, Executive Director and Chief Executive Officer at Hyphens Pharma.

Mr. Lim is responsible for overseeing the overall operations and managing the Group’s strategic direction. He has more than 25 years of experience working in the pharmaceutical industry.

Meanwhile, the 2nd largest shareholder belongs to Mr. Tan Chwee Choon, who has a 12.79% stake in the company. Currentlyy, he is the Executive Director at Hyphens Pharma and has amassed more than 35 years of experience in the pharmaceutical and consumer healthcare industries, and is currently responsible for managing the Group's Indochina operations.

2) LHN Limited (SGX: 41O)

LHN Limited is a real estate management services group, with the expertise in space optimisation, and logistics service provider headquartered in Singapore. The Group currently has three main business segments, namely:

• Space Optimisation Business
• Facilities Management Business
• Logistics Services Business

The single largest shareholder for LHN Limited belongs to the Lim Family, which has a 54.03% stake in the company. It is led by Mr. Kelvin Lim, who is the Executive Chairman, Executive Director & Group Managing Director for LHN Limited.

Other notable shareholders include Ms. Lim Bee Choo, who has a 0.97% direct stake and deemed to have an interest in the 54.03% stake held by the Lim Family. She is the Executive Director & Group Deputy Managing Director for LHN Limited.

3) Valuemax Group Limited (SGX: T6I)

ValueMax Group Limited is an investment holding company. The Company is engaged in the provision of management services. The Company and its subsidiaries provide pawnbroking and secured moneylending services, as well as the retail and trading of pre-owned jewelry and gold.

The single largest shareholder for Valuemax belongs to Yeah Hiang Nam Family, which has a 64.51% stake in the company. It is led by Mr. Yeah Hiang Nam himself, who is the Managing Director and Chief Executive Officer for Valuemax. On top of the 64.5% stake held by the Family, Mr. Yeah also has a direct stake of 6.35% in the company.

The 2nd largest shareholder for Valuemax belongs to Ms. Tan Hong Yee, who has an 8.84% stake in the company. As both Mr. Yeah Hiang Nam and Ms. Tan Hong Yee are husband and wife, as such, they are deemed to have an interest in the shares held by each other and their total interest comes up to 73.3%.

Conclusion

To summarize, significant insider ownership resonates well with retail investors as the insiders’ interest are aligned with them. This means that the insiders are more incentivized to create more shareholder value in the long run.

Lastly, it is important for retail investors to look at their past financial performance to have a clearer understanding on whether the company’s business performance and prospects have been improving with the high insider ownership.

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