25 companies conduct buybacks, with S$64 million combined consideration

FOR the 5 trading sessions that spanned Aug 26 to Sep 1, the Straits Times Index (STI) declined 0.8 per cent, with the FTSE China A50 Index sliding 1.3 per cent, the Hang Seng Index falling 2.2 per cent and the FTSE Bursa Malaysia KLCI slipping 0.1 per cent.

Overall, institutions were net sellers of Singapore stocks for the 5 sessions ended Sep 1, with S$38 million of net outflows. Jardine Matheson Holdings : J36 0%, Singapore Exchange : S68 0%, Singapore Technologies Engineering : S63 0%, Ascendas Reit : A17U 0% and Hongkong Land : H78 0% led the net institutional outflows for the 5 sessions. Meanwhile, OCBC : O39 0%, Keppel Corporation : BN4 0%, DBS : D05 0%, UOB : U11 0% and City Developments : C09 0% led the net institutional inflows for the 5 sessions.

Share buybacks

There were 25 primary-listed stocks conducting share buybacks over the 5 sessions, with a total consideration of S$64 million. Keppel Corporation led the 5-session buyback consideration tally, buying back just over 3.9 million shares at an average price of S$7.24 per share.

Keppel has bought back 2.45 per cent of its issued shares (excluding treasury shares) on the current mandate as of Sep 1. Also of note, CosmoSteel Holdings : B9S 0%, which bought back 160,000 shares over the 5 sessions had bought back 9.84 per cent of its issued shares (excluding treasury shares) on its current mandate as of Aug 31.

For the month of August, more than 30 primary-listed stocks bought back shares, with a total consideration of S$332.3 million. Keppel, Wilmar International : F34 0%, OCBC, CapitaLand Investment : 9CI 0% and Yangzijiang Financial Holding : YF8 0% led the monthly consideration tally.

Director and substantial shareholder transactions

The 5 trading sessions saw 50 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 11 company director acquisitions with 1 disposal filed, while substantial shareholders filed 3 acquisitions and 8 disposals.

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Wilmar International

On Aug 29, Wilmar International : F34 0% non-executive director Kuok Khoon Hua disposed of 220,000 shares via a market transaction at S$4.06 per share. The consideration of the acquisition totalled S$894,683 and marginally reduced his total interest in Asia’s leading agribusiness group from 0.965 per cent to 0.962 per cent.

Kuok filed similar sized market transactions, which were acquisitions, back in 2018. In that year, he acquired 225,000 shares at S$3.04 per share on Jun 28, and 222,000 shares at S$3.08 per share, on Jun 25.

Kuok was first appointed to the board of Wilmar in July 2016. He is the chairman of Kerry Holdings, the main investment holding company of the Kuok Group in Hong Kong.

He is also an executive director of Kerry Logistics Network and a non-executive director of Kerry Properties, both of which are companies listed on the Hong Kong Stock Exchange, and an independent director of Sea, listed on the New York Stock Exchange.

Back on Aug 4, Wilmar reported a record US$1.16 billion net profit for H1 2022, on the back of an improved performance across all key business segments as well as higher contributions from its associates and joint ventures.

Samudera Shipping Line

Between Aug 25 and 26, Samudera Shipping Line : S56 0% executive director and CEO Bani Maulana Mulia acquired 97,600 shares at an average price of S$1.02 cents per share. This followed his acquisition of 49,100 shares at S$1.02 cents per share between Aug 18 and 19.

He maintains a 0.64 per cent direct interest in Samudera Shipping Line, which is primarily engaged in container shipping transportation of cargo in the Asian region.

The group’s vessels and services currently ply trade routes connecting various ports in South-east Asia, the Indian Subcontinent, the Far East and the Middle East. Bani was appointed group CEO on Sep 1, 2020 and is responsible for the group’s strategic direction, growth and day-to-day operations. He is also the president director of Samudera Indonesia.

Nordic Group

Between Aug 26 and 29, Nordic Group : MR7 0% executive chairman Chang Yeh Hong acquired 173,000 shares at an average price of 48.9 cents per share. With a consideration of S$84,590, this increased his direct interest in the company from 54.54 per cent to 54.58 per cent.

On Aug 5 the group reported its H1 2022 revenue rose by 62 per cent year on year to S$79.8 million as the segments, project services and maintenance services, improved over H1 2021 with the easing of movement restrictions worldwide.

Chang is responsible for, among other things, the reviewing of business plans, strategic positioning and business expansion of the group and has more than 18 years of experience in the banking industry. The group provides project and maintenance services for industries such as marine, offshore oil and gas, petrochemical, pharmaceutical, semiconductor, infrastructure, public environment, and security agencies.

On Aug 11, Nordic Group announced its entry into Forbes Asia’s “Best Under A Billion” list of public companies. The group also noted it had S$232.7 million worth of contracts in its order book as of Jun 30, 2022, to be recognised up to 2024.

EnGro Corporation

On Aug 26, EnGro Corporation : S44 0% chairman and CEO Tan Cheng Gay acquired 50,000 shares for a consideration of S$62,260. At an average price of S$1.25 per share, this increased his total interest in the leading provider of building materials from 14.68 per cent to 14.72 per cent. His preceding acquisition was on Nov 29, 2021, with 3,300 shares acquired at S$1.29 per share.

Tan is a stalwart of the company, having been with EnGro Corporation since its inception, and was appointed director in 1973. He has since served as the executive director and steers the strategic direction and vision of the group.

On Aug 11, EnGro Corporation reported its H1 2022 revenue grew 3.7 per cent to S$64.7 million compared to H1 2021, mainly due to the recovery of construction activities in Singapore and Malaysia.

Hong Fok Corporation

On Aug 26, Hong Fok Corporation : H30 0% executive director and joint CEO Cheong Sim Eng acquired 35,000 shares, for a consideration of S$36,750 at S$1.05 cents per share. He maintains a 20.41 total interest in the property developer. His preceding acquisition of 43,000 shares at 98.0 cents per share was on Jun 10.

Cheong is principally involved in the group’s overall operations and management, with greater emphasis in Singapore and he has over 37 years of experience in the property development business.

On Aug 11, Hong Fok posted H1 2022 revenue of S$55.6 million, compared to S$42.8 million for H1 2021.

The increase in revenue was mainly attributed to increases in sales of the residential units of Concourse Skyline, net increase in rental income of its properties mainly from the hotel, YOTEL Singapore Orchard Road, with these increases partially offset by a fall in property management income.

The group noted that the performance of YOTEL experienced a recovery in H1 2022 due to the pent-up global demand for travel and maintained that if this demand stays and the economic outlook continues to improve, the occupancy rate and room rates of YOTEL should improve.

However, the group added that the increase in energy cost and higher agents’ commission cost may dampen YOTEL’s net contribution.

Mooreast Holdings

On Aug 30, Mooreast Holdings : 1V3 0% founder, executive director, CEO and deputy chairman Sim Koon Lam acquired 108,000 shares at an average price of 13.1 cents per share. With a consideration of S$14,176 this increased his total interest in the Catalist-listed company from 73.68 per cent to 73.72 per cent.

Sim has over 35 years of business and technical experience in the O&G industry. As CEO, his core responsibilities include operations management and business development.

He founded Mooreast Asia in 2010 and established Mooreast Pte Ltd in Singapore in 1993 as Vryhof Anchors’ Asian subsidiary to support regional operations and after-sales services.

With operations mainly in Singapore and a European sales office in Rotterdam, the Netherlands, Mooreast is a total mooring solutions specialist, serving the offshore O&G, marine and offshore renewable energy industries.

On Aug 12, Mooreast Holdings announced a 122 per cent year-on-year increase in net profit for its H1 2022 to S$0.9 million on revenue of S$13.0 million.

The company also noted it had successfully secured a US$2.6 million project to deliver 15 units of midwater arch buoys to Asia’s first commercial-scale floating wind farm.

The writer is the market strategist at Singapore Exchange (SGX). To read SGX’s market research reports, visit sgx.com/research.