Buybacks & director acquisitions rise amid STI pull back

FOR the 5 trading sessions that spanned Nov 26 to Dec 2, the Straits Times Index (STI) declined 4.0 per cent, with the FTSE China A50 Index declining 1.0 per cent, the Hang Seng Index declining 3.7 per cent and the FTSE Bursa Malaysia KLCI declining 1.1 per cent.

Within the STI, CapitaLand Investment, DBS D05 Group Holdings, Mapletree Log Trust M44U , UOL U14 Group and Keppel DC Reit AJBU received the highest net institutional inflows from Nov 26 to Dec 2.

Outside the STI, Singapore Press Holdings T39 , AEM Holdings AWX , Top Glove BVA , Sembcorp Marine S51 and Frencken Group E28 received the highest net institutional inflows during the period.

Overall, institutions were net sellers over the 5 sessions, with S$486 million of net inflow, with Singapore Airlines C6L , Singapore Telecommunications Z74 , ComfortDelGro, C52 OCBC O39 and Jardine Matheson J36 Holdings seeing the highest net institutional outflows.

Share buybacks

There were 26 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$206.7 million, up almost fivefold from the S$42.5 million for the preceding five sessions.

CapitaLand Investment 9CI , led the consideration tally, paying an average price of S$3.36 per share, the same average price it paid for the buybacks in the preceding 5 sessions.

As of Dec 2, it had bought back 1.01 per cent of its issued shares (excluding treasury shares) since commencing buybacks on Oct 12. Secondary-listings Hongkong Land H78 and Jardine Matheson Holdings also bought back shares over the 5 sessions.

Director and substantial shareholder transactions

The 5 trading sessions saw 110 changes in director interests and substantial shareholdings filed for more than 50 primary-listed stocks. This included 29 company director acquisitions with 5 disposals filed, while substantial shareholders filed 27 acquisitions and 4 disposals.

Among the substantial shareholder transactions, on Nov 30, Wee Investments acquired 2,060,000 shares of UOL Group at an average price of S$6.88 per share, with another 200,000 shares acquired on Dec 1 at an average price of S$6.95 per share, taking its direct interest in the company from 14.77 per cent to 15.04 per cent.

Q & M Dental

Between Nov 25 and 30, Quan Min Holdings acquired 12,728,900 shares of Q & M QC7 Dental Group (Singapore) (Q & M) shares. Quan Min Holdings is an investment holding company incorporated in Singapore and Q & M's ultimate parent company.

The shares were acquired at an average price of 62.3 cents per share with a consideration of S$7,935,530.

The acquisitions increased the deemed interest of founder and group CEO, Ng Chin Siau in Q & M from 52.74 per cent to 54.09 per cent.

This followed the acquisition of 3,050,300 shares at 58.9 cents per share between Nov 23 and 24 and 7,584,300 shares at 59.3 cents per share between Nov 12 and 18.

Dr Ng founded the group in 1996. He is responsible for its corporate direction.

He leads the group in all aspects of its business strategies, policy planning and business development in Singapore, Malaysia, and China.

StarHub

On Nov 25, chief executive and executive director of StarHub CC3 , Nikhil Eapen acquired 730,000 shares of the company at an average price of S$1.38 per share.

With a consideration of S$1,005,870, this took his deemed interest in the communications, entertainment, and digital solutions provider to 0.04 per cent.

This was his first acquisition of shares in the company since he was appointed chief executive in January 2021.

Nikhil is responsible, together with the executive team, for leading StarHub's transformation and value creation for all stakeholders.

At StarHub's 2021 Investor Day on Nov 22, Nikhil and the senior leadership team launched the company's next 5-year strategic transformation and growth programme, DARE+.

This initiative follows the successful conclusion of DARE 1.0, which ended in October 2021 and delivered cost savings of over S$270 million, exceeding the original target of S$210 million.

DARE+ sees StarHub aiming to achieve sustainable revenue and gross profit growth, and potential growth in dividends, with superior value propositions enabled by the continued introduction of new 5G products and solutions, further operating cost savings through digitalisation, and progressive declines in fixed cost through the continued evolution of operating models.

StarHub targets to deliver S$220 million in gross profit growth and S$280 million in cost savings cumulatively between FY2022 and FY2026.

Nikhil noted that DARE+ is the next giant step for StarHub in its transformation journey to transcend beyond telco, is laser-focused on growth in all areas, and is no less ambitious than DARE 1.0.

He added that StarHub is transforming into a full-on digital life and digital services provider of enriching connectivity, entertainment and other lifestyle experiences, as well as innovative business solutions for its customers, with frictionless digital engagement at its core.

Prior to his current appointment, Nikhil was deputy chief executive officer, ST Telemedia and president and group chief executive officer of ST Telemedia's Infrastructure Technology.

He led corporate development activities across its communications, data centres and technology holdings, most recently building and acquiring cloud-centric platforms in IT, cybersecurity and enterprise software.

He also previously served as a member of StarHub's board strategy committee.

Prior to joining ST Telemedia, he was an investment banker for over 18 years at Citigroup, working in the firm's Hong Kong, New York and South East Asian offices.

From 2008 to 2015, he was managing director and head of Asia-Pacific technology, media and telecommunications corporate and investment banking at Citigroup, based in Hong Kong, where he led capital markets and M&A transactions across South-east Asia, Greater China, India and the US.

Credit Bureau Asia

Between Nov 26 and Dec 2, Credit Bureau Asia TCU founder, executive chairman and CEO Koo Chiang acquired 537,300 shares of the company for a consideration of S$651,479 at an average price of S$1.21 per share.

This increased his direct interest from 68.10 per cent to 68.30 per cent.

His preceding acquisitions included 53,200 shares at S$1.16 per share, between Nov 17 and 22 and 138,300 shares at S$1.15 per share between Nov 11 and 16.

Since establishing the credit information business in Singapore in 1993, he has over 20 years of experience in the credit information industry and has been instrumental in the success and expansion of the group over the past 2 decades.

Fortress Minerals

Between Nov 30 and Dec 1, Fortress Minerals OAJ non-executive and non-independent director Teh Lip Kim acquired 400,000 shares of the Catalist-listed company at an average price of 38.0 cents per share.

With a consideration of S$152,000 this increased her direct interest in the explorer, miner, producer, and seller of iron ore concentrate from 0.10 per cent to 0.18 per cent.

She also maintains a 33.29 per cent deemed interest in Fortress Minerals which takes her total interest to 33.47 per cent.

Teh was appointed to the board of Fortress Minerals in February 2019.

She is presently the managing director and substantial shareholder of Selangor Dredging, a property development company listed on Bursa Malaysia and the holding company of SDB Mining, a controlling shareholder of Fortress Minerals.

On Oct 8, Fortress Minerals reported revenue of US$27.3 million for its H1FY22 (ended Aug 31), a year-on year increase of 35.8 per cent, driven by higher average realised selling price which was up by 49.1 per cent year on year, underpinned by a robust pricing environment.

AnnAik

On Nov 26, AnnAik A52 executive director and COO Ng Kim Keang acquired 609,400 shares of the manufacturer and distributor of stainless steel products for a consideration of S$46,065. At 7.6 cents per share, this took his direct interest in AnnAik from 2.44 per cent to 2.65 per cent.

Ng joined the company in January 2003 as financial controller, then was promoted to executive director in January 2005 and chief operating officer in March 2015. Currently, he is responsible for managing the overall operations and the finance and accounting matters of the group.

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