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likely to invest in this firm would be long-term investors looking for dividendreturns.6The reason being that YTL Power is a company that is highly unlikely tohave a sudden surge in capital growth as its industry is one that is sustainable but notfluctuative. Additionally, from the period of July 2016 to June 2017, YTL Power’sshare price has neither increased nor decreased by a significant amount. Therefore, itdoesn’t show signs of capital growth during this financial period. However, due to itssustainability, it is able to consistently make profit and thus give good dividends to itsshareholders.7Based on a cursory reading of the chairman’s (Tan Sri Dato’ Seri [DR] Yeoh TiongLay) statement, his message was directed more towards institutional investors than to“mom and dad” investors. As his statement was very complete and detailed withplenty of information regarding the firm’s business from its financial and managementperspective.8“Mom & dad” investors would not be able to interpret the information4“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.9Therefore, thestatement 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 thenext trade can be defined as a marginal investor/shareholder. As they trade the stockon a regular basis, the stock price can be influenced by them.10In contrast, non-marginal investors are shareholders who do not trade the stock on a regular basis. Thisreport seeks to classify YTL Power International BHD’s marginal and non-marginalshareholders by analyzing their top twenty largest shareholders. The list of the top 20shareholders as at 30thJune 2017 is contained in appendix A.11The largest and second largest shareholder mentioned in the annual report is YTLCorporation BHD, accounting for 47.19% of issued shares. Founded in 1955, it is theparent company of YTL Power International BHD.12Given that YTL PowerInternational BHD is its subsidiary, it is expected that a large percentage of shares isheld by the parent company (YTL Corporation BHD) to ensure controlling interest inthe company. Based on the information given, it is highly unlikely that YTLCorporation BHD is a marginal investor. If the shares are traded consistently, there