Before starting with the list of Top 10 Companies in Malaysia by Market Cap, it is important to know about Market Capitalization. This article will cover the basics of market capitalization and top companies in Malaysia by market cap.
Currently, up to 100 companies have their presence on the Bursa Malaysia for market capitalization. Each company in the market looks forward to providing satisfactory services to their clients.
What is Market Capitalization?
When you look to build a company and create an investment strategy for long-term goals, you need to know about the company size, return potential, and risk. These primary keys will help you prepare better for the balance stock portfolio.
Market capitalization or Market Cap refers to the total value of a company’s share of stocks. This calculator of the complete capitalization of a company is done by multiplying the price of a stock by its total number of outstanding shares.
Talking in simpler terms, there is a company with 10 million shares, and each share has a selling price of $30. The market capitalization will stand at $300 Million. This is how you calculate a company’s market capitalization and know about its net share value.
Why is the concept of Market Capitalization so crucial for companies?
Market capitalization provides the data for the company’s net assets and the company’s share value. This helps allow the investors to understand the relative size of one company versus another. Also, the company’s market capitalization clears out the company’s worth on the open market. This gives out the market’s perception of its prospects as it shows the willingness of an investor to pay for the stock.
There is three major market capitalization bifurcation. One is large-cap, another is Mid Cap, and the last is Small cap. This segment will clear out the difference between the three capitalizations.
● Large-cap companies
These firms have a market valuation of $10 billion and above. They are well-known companies for their quality goods and the services they provide. Moreover, the organization’s consistent dividends and steady growth are an add-on. They are dominating players in their respective industries, plus the brand name is evident with the mass audience.
This is the primary reason why large-cap stocks are a good consideration. They are conservative than the investment in the small-cap or the mid-cap. The primary reason for this is the less risk in exchange for the less aggressive growth graph.
● Mid-cap companies
Mid Cap is a business with a value between $2 billion and $10 billion. These are the companies that are experiencing rapid growth in the transactional phase. These companies may see a change in the market share, improving their overall competitiveness.
The company’s growth depends on the fulfilment of the potential they hold. Moreover, these companies fall between the large and small caps on the risk/return spectrum. Although Mid-cap companies have a more growth spectrum than large-cap companies, they hold lesser risk than small-cap companies.
● Small-cap companies
These are typically those companies whose market valuation is between $300 million to $2 billion. Generally, the companies are new markets, young companies who serve a niche market or growing industries. Small-cap companies are more aggressive and have risk factors than the other two on the list. Moreover, these companies have limited resources as they are more susceptible to a business or economic downturn. Although keeping consistency aside, these small-cap businesses have more growth profit than the two on the list. These are significantly great for the one looking for long-term investment—moreover, an arena for the one who tolerates the volatile stock price swings in the short term.
The above information provides all the relevant data regarding market capitalization, why it is important to know about it. Now, this article will cover the top companies in Malaysia by market cap and information about each of the companies on the list. Moreover, the companies mentioned in the article are for an information basis none of the companies is a suggestion or a recommendation on our end. If you want to invest in any of the companies, go through the complete analysis.
List of Top Companies in Malaysia by Market Cap.
● IOI CORP
● HAP SENG
Detailed Analysis of the Top 10 Companies in Malaysia by Market Cap.
Here is the list of the Top Companies in Malaysia by Market Cap. These companies are either the monopoly or have built their potential growth in the market. Moreover, the companies are growing or have a secure setup and steady growth. This segment will cover up the top listed company in Malaysia.
Here are the complete details of the top Malaysian companies in the list:
The first one on the list of top companies in Malaysia is Malayan Banking Bhd. It is a financial sector company that operates the holding company. Their primary business is to operate through the different segments such as the Group Community Financial Services (CFS), Group Corporate Banking and Global Markets. This also includes Group Investment Banking, Group Asset Management, Group Insurance and Takaful.
Moreover, the CFS Segment holds the retail banking services to individual, small, medium enterprise and business banking customers. Talking about Group Insurance and Takaful, this segment is all about the underwriting of all general and life insurance businesses classes. Moreover, this includes the offshore investment life insurance business, general takaful and family takaful businesses. Maybank was founded in 1960 on May 31, headquartered in Kuala Lumpur, Malaysia.
Another leading company on the list of top companies in Malaysia is CIMB Group Holdings Bhd. The company primarily belongs to the financial sector belonging to the regional banking industry. CIMB is the leading operator of different segments such as Consumer Banking, Commercial Banking, Wholesale Banking, and CIMB Digital Assets & Group Funding. The commercial banking segment actively deals in financial solutions for both conventional and Islamic to various businesses. Although the banks provide their services in different banking segments, it also provides leading services in the commercial sector.
The wholesale banking centre takes care of both corporate and institutional clients. The CIMB also engages in the digital business and ventures through the Digital Assets & Group Funding segment. CIMB was founded in 1924 by Kheng Chiang Wee and Kheng Whatt Wee, headquartered in Kuala Lumpur, Malaysia.
Axiata Group Bhd. is another add-on to the top listed company in Malaysia. The company belongs to the communication sector, working actively in the wireless telecommunication industry. They are currently operating as an investment holding company that engages in mobile communication and network transmission-related services. Moreover, they operate in segments like mobile services, interconnect services, pay television transmission services, and other data services. Also, their infrastructure segments offer telecommunication infrastructure and services. Although the company primarily deals in the communication segment, they also look towards digital services. Axiata was founded on 1992 June 12, headquartered in Kuala Lumpur, Malaysia.
The third one on the list of top 10 companies in Malaysia is Nestlé (Malaysia) Bhd. Nestle is a worldwide famous brand. In Malaysia, they operate as an investment holding company. The primary business of Nestle is the manufacturing, marketing and sale of food products. They are currently operating through different segments such as Food and Beverages and Others. There are many famous products of Nestle, such as caffeine products. The Food and Beverages segment includes junior foods, milk, breakfast cereals, hot cereals, creamers, beverages, and coffee.
Moreover, there are other add-ons, such as culinary products, chilled dairy, ice cream, confectionery and chocolate, and health science products. Although the company primarily deals in food and beverages, the other segments they deal in consist of Nutrition, Nestlé Professional, Nespresso and Nestle Health Science. Nestle has been operating since 1912, and its headquarter is located in Petaling Jaya, Malaysia.
Another one on the list of the top companies in Malaysia by market cap is Sime Darby Plantation Bhd. The company belongs to the processing industry sector and engages in producing certified sustainable palm oil (CSPO). They have been operating in different segments such as Upstream Malaysia, Upstream Indonesia, Upstream Papua. The list also includes the New Guinea and Solomon Island (PNG/SI); Downstream, and Other Operations.
This process is divided into two parts: the Upstream Malaysia segment develops, cultivates, and manages oil palm and rubber plantation estates. On the other hand, these control the mill’s fresh fruit bunches (FFB) into crude palm oil (CPO) and palm kernel (PK). Later this comes out as a complete product and sells rubber.
On the other hand, the Upstream Indonesia segment deals in the development, cultivation, and management of oil palm plantation estates; although this complete process comes under them, they also go for the milling of FFB into CPO and PK.
The other estate under them, The Upstream PNG/SI segment, deals in the oil palm and sugar cane plantation estates. These look forward to the milling of FFB into CPO and PK. This also includes refining sugar cane, coconut oil, cattle rearing, and beef production.
Moreover, other segments include producing and selling refined oils and fats, coconut oils, biodiesel products, and many more. The last part consists of the Trading of agricultural products and services. The company’s establishment happened in 2007, headquartered in Petaling Jaya, Malaysia.
6. IOI CORP
IOI Corp. Bhd. is another leading investment holding company with a list of top companies in Malaysia. It primarily belongs to the process industries sector, leading agricultural commodities and milling industry—the company deals in manufacturing palm oil, oleo-chemicals, specialty oils and fats. The segments through which it operates are Plantation, Resource-Based Manufacturing, and Other Operations.
Talking about the plantation segment involves the cultivation of oil palm, rubber, and palm oil. Moreover, it is a resource-based manufacturing company that has a complete focus on oleochemicals.
This includes specialty oils and fats, palm oil refinery, and palm kernel crushing. Although the company was established on 1969 October 31, headquartered in Putrajaya, Malaysia, it has been playing a monopoly in the market.
7. HAP SENG
The Hap Seng Consolidated Bhd is another one on the list of top Malaysian companies. It is an investment holding company that engages in plantations, property investment and development. The other business includes the credit financing and Trading of fertilizers, automotive, building materials, and stone quarries.
They are leading operators in different segments like Plantation, Property, Credit Financing, Automotive, Trading, and Building Materials. Each segment includes something like the Plantation segment cultivates oil palm and processes fresh fruit bunches. On the other hand, the Property segment is about investing and developing properties. Similarly, the different segments include Credit Financing, which provides financial services; Automotive trades, motor vehicles, spare parts, and services motor vehicles. The last segment is Trading, which trades and distributes fertilizers and agrochemicals. The last one is the Building Materials segment deals in stone quarries and asphalt plants and manufactures bricks. Hap Seng was founded in 1975 on March 24 headquartered in Kuala Lumpur, Malaysia.
Genting Bhd. is another example of the Top 10 Companies in Malaysia by Market Cap. It is an investment holding and management firm and investment which engages in the entertainment business and leisure hospitality. The primary operating segments are Leisure and Hospitality, Plantation, Power, Property, Oil and Gas, and Investments and Others. The leisure and hospitality segment holds gaming, hotels, food and beverages, theme parks, retail, entertainment, and attractions. This list goes on and includes:
- Tours and travel-related services.
- The development and operation of integrated resorts.
- Other support services.
On the other hand, there is a plantation segment about the oil palm plantations, palm oil milling, and related activities.
Talking about their power segment, they are into electricity generation and sullying the power. Although the company’s primary focus is the entertainment business, they also deal in all other features. The list of different segments is the Property segment, Oil and Gas, the Investments and Others segment like interest income from financial assets. Genting was founded in 1965 by Goh Tong Lim, headquartered in Kuala Lumpur, Malaysia
Inari Amertron Bhd. is another one on the Top 10 Companies in Malaysia by Market Cap. This is another investment holding company that engages in manufacturing services, and the company is operating through Segment I and Segment II.
Segment I includes all the electronic manufacturing, outsourced semiconductor assembly, and test services. On the other hand, segment II has all the investment holdings, and segment II focuses on investment holding. Moreover, Inari Amertron Bhd. Founded on May 5, 2010, headquartered in Petaling Jaya, Malaysia.
The last one on the list of Top 10 Companies in Malaysia by Market Cap is Malaysia Airports Holdings Bhd. This is an investment company that engages in airports’ operations, management, and maintenance. They are currently operating through the segments like Duty-Free and Non-Dutiable Goods. The list includes Malaysia Airport Services, Agriculture and Horticulture. The list continues to Hotel, Project and Repair Maintenance, Overseas Airport Services, and Project and Repair Maintenance.
Every segment includes some or other services such as The Duty-Free, and Non-Dutiable Goods manages duty-free and non-duty-free outlets. This also provides management services regarding retail, fashion, food, and beverage outlets at designated airports.
The Malaysian airport includes the services such as the management, operation, and maintenance of designated airports in Malaysia and related services. On the other hand, Agriculture and Horticulture include cultivating and selling oil palm and other agricultural products and providing horticulture activities.
Note – Also Read our latest article about the top 10 best forex trading apps in Malaysia