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Case Study Berjaya Auto Berhad (KLSE: BJAUTO,5248) Corporate Finance FNCE 3000 Name Student ID Tan How Ann 18871605 Tutor’s Name: Mr Md Saifur Rahman Tutorial Day: Friday Tutorial Time: 10am – 11am (3216 Words)
Introduction Berjaya Auto Berhad (BAuto) was incorporated in Malaysia since 11 May 2010. Before it was listed as public company, it was a private limited company which goes by the name of Fiscal Start Sdn Bhd. Later on 14 February 2011, Fiscal Start Sdn Bhd then change the company name to Berjaya Auto Sdn Bhd, on 11 July 2011, Berjaya Auto Sdn Bhd was successfully converted to public company and was listed in Malaysia stock exchange, Bursa Malaysia Main Market as stock symbol “BJAUTO”, stock code “5248” on the 18 November 2013. Berjaya Auto Berhad business is mainly on distribution and retailing Mazda vehicles in Malaysia. It also provides aftersales services and spare parts for Mazda vehicles that was sold in Malaysia via Bermaz Motor Sdn Bhd and Bermaz Motor Trading Sdn Bhd. Berjaya Auto Berhad headquarter was located in Shah Alam, Malaysia. 1The company most significant subsidiaries recorded as 12 July 2016:2 Name of Subsidiaries Equity holdings Bermaz Motor Sdn Bhd 100% Bermaz Motor Trading Sdn Bhd 100% Bermaz Motor International Ltd 100% Berjaya Auto Philippines Inc. 60% Mazda Malaysia Sdn Bhd 30% Inokom Corporation Sdn Bhd 29% This report provides an overview of Berjaya Auto Berhad, as in shareholder analysis, a risk-return analysis and a decomposition of its cost of capital. ______________________ 1“Company Overview of Berjaya Auto Berhad”, accessed on 22 August 2016, 2 “Annual Report 2016”, Berjaya Auto Bhd, accessed 22 August 2016, , 16
1.0 Shareholder Analysis A marginal investor is defined as those investors that have certain level of education or knowledge regarding finance or stocks. Normally marginal investors in a firm are more likely to influence the share price of the company, they are the buyers and sellers of the company shares in the market. They usually own a lot of company shares and trade them on daily basis. Besides that, marginal investor also possesses significant of capital and time to invest in a well-diversified portfolio. Hence this part of the report will discover and profile the marginal investors of Berjaya Auto Bhd provided the top 20 shareholder list in the annual report 2016 of Berjaya Auto Bhd. Appendix A contain the table of top 20 investors of Berjaya Auto Bhd as of 12 July 2016. The largest investor that was on the list as of 12 July 2016, is Maybank Nominees (Tempatan) Sdn Bhd. As recorded, Maybank Nominees (Tempatan) Sdn Bhd on behalf of Dynamic Milestone Sdn Bhd has brought 196,000,000 shares which is the total of 17.11% of the outstanding shares under nominees account.