likely to invest in this firm would be long term investors looking for dividend

Likely to invest in this firm would be long term

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likely to invest in this firm would be long-term investors looking for dividend returns. 6 The reason being that YTL Power is a company that is highly unlikely to have a sudden surge in capital growth as its industry is one that is sustainable but not fluctuative. Additionally, from the period of July 2016 to June 2017, YTL Power’s share price has neither increased nor decreased by a significant amount. Therefore, it doesn’t show signs of capital growth during this financial period. However, due to its sustainability, it is able to consistently make profit and thus give good dividends to its shareholders. 7 Based on a cursory reading of the chairman’s (Tan Sri Dato’ Seri [DR] Yeoh Tiong Lay) statement, his message was directed more towards institutional investors than to “mom and dad” investors. As his statement was very complete and detailed with plenty of information regarding the firm’s business from its financial and management perspective. 8 “Mom & dad” investors would not be able to interpret the information 4 “Definition of Capital Growth,” The Economic Times, accessed April 25, 2018, . 5 “Understanding the Dividend Yield on a Stock,” The Balance, accessed April 25, 2018, - stock-2388525. 6 “Long Term Investments,” Investopedia, accessed April 21, 2018, . 7 “YTL Power Annual Report 2017,” YTL Power International Berhad, accessed April 21, 2018, al%20Berhad-AnnualReport2017.pdf. 8 “YTL Power Annual Report 2017,” YTL Power International Berhad, accessed April 21, 2018,
given whereas institutional investors would understand it clearly. 9 Therefore, the statement is assumed to be directed more towards institutional investors. Any investor of a firm who is most likely to buy or sell the company’s stock on the next trade can be defined as a marginal investor/shareholder. As they trade the stock on a regular basis, the stock price can be influenced by them. 10 In contrast, non- marginal investors are shareholders who do not trade the stock on a regular basis. This report seeks to classify YTL Power International BHD’s marginal and non-marginal shareholders by analyzing their top twenty largest shareholders. The list of the top 20 shareholders as at 30 th June 2017 is contained in appendix A. 11 The largest and second largest shareholder mentioned in the annual report is YTL Corporation BHD, accounting for 47.19% of issued shares. Founded in 1955, it is the parent company of YTL Power International BHD. 12 Given that YTL Power International BHD is its subsidiary, it is expected that a large percentage of shares is held by the parent company (YTL Corporation BHD) to ensure controlling interest in the company. Based on the information given, it is highly unlikely that YTL Corporation BHD is a marginal investor. If the shares are traded consistently, there

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