Buybacks, director transactions and stake realignments

[SINGAPORE] Over the four sessions through to the May 7 close, 16 primary-listed companies conducted buybacks with a total consideration of S$16.1 million. At the same time, more than 90 director interests and substantial shareholdings were filed for more than 40 primary-listed stocks.

Directors or CEOs reported 12 acquisitions and 13 disposals, while substantial shareholders recorded 10 acquisitions and two disposals. This included CEO or director acquisitions filed for Asti Holdings , Beng Kuang Marine , Dezign Format , Fuxing China , Huationg Global , Khong Guan , Nera Telecommunications , Vin’s Holdings and YHI International .

Avi-Tech: strategic stake sale resets control

On May 6, Avi-Tech Holdings shares were transacted through a married deal in which Global Wave Venture acquired 51,142,766 shares, representing 29.9 per cent of the company, from founder Lim Eng Hong and his related parties for total consideration of S$17 million.

This marked a shift in control at the listed entity and introduces a new strategic shareholder, resetting the ownership base for the next phase of capital allocation and positioning.

The transaction was accompanied by a leadership transition at the listed company. Lim, who founded Avi-Tech in 1981, stepped down as executive director, CEO and executive chairman, while Alvin Lim resigned as executive director and chief operating officer (COO).

Both remain with the operating subsidiary Avi-Tech Electronics, continuing as CEO and COO, respectively, preserving execution continuity despite the reset at board level.

Operationally, the group reported revenue of S$8.7 million for the first half of the 2026 financial year (ended Dec 31), with gross profit of S$700,000 and a net loss of S$1 million, reflecting weaker engineering demand and project deferments. Liquidity remains a key support, with cash of S$37.5 million and total assets of S$55.1 million against total liabilities of S$5.6 million, providing flexibility through the cycle.

From a value perspective, the reset sits alongside a net cash balance and low leverage, with capital preserved through the decision not to declare an interim dividend. This supports operational stability and allows redeployment into efficiency improvements and selective growth areas.

Supported by its new strategic shareholder and refreshed leadership structure, the group is well-positioned to drive sustainable growth and deliver long-term value creation for shareholders.

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Beng Kuang Marine: ownership rotation as Asom deal lifts earnings capture

On May 6, Amova Asset Management and Tokio Marine Life Insurance Singapore as well as oil and gas veteran Tan Kim Seng, alongside other investors, acquired 9.98 million shares for S$4.8 million that were divested by one of Beng Kuang Marine founder’s, Chua Meng Hua.

The company’s executive chairman acquired 578,286 shares and the CEO took 500,000 shares. Beng Kuang Marine said the sale reflects the founder stepping back from an executive role, with ownership rotating into institutional and management hands.

It added that the shareholder base broadened, liquidity improved and management alignment increased as the group continues to execute on offshore life-cycle services supported by a growing base of recurring work.

On Feb 26, Beng Kuang Marine announced the proposed acquisition of the remaining 49 per cent stake in Asian Sealand Offshore and Marine (Asom), which already anchors the group’s earnings base, with FY2025 revenue of about S$75 million against group’s revenue of S$98 million, and standalone profit after tax of around S$14.9 million.

The acquisition does not change revenue, which is already consolidated, but increases earnings attributable to shareholders through the removal of minority interests. Based on FY2025, this lifts attributable profit by roughly S$7 million, with no change to the underlying operating base.

Asom is the core of the group’s floating production storage and offloading (FPSO) segment, supporting 19 vessels across seven countries and securing about S$27.6 million of FY2026 revenue with a high level of repeat work. The work is driven by inspection, maintenance and life extension cycles of FPSOs, providing recurring demand and anchoring earnings visibility.

With most of FY2026 revenue already supported by a confirmed order book of around S$51.2 million, the acquisition brings the group’s main earnings driver fully in-house and improves visibility over earnings contribution.

UOB Kay Hian and Lim & Tan have initiated coverage with “buy” calls with recently raised their target prices of S$0.75 and S$0.69, respectively, pointing to recurring FPSO lifecycle demand from an ageing global fleet and the earnings uplift from the full consolidation of Asom.

The report highlights that inspection, repair and life extension work remains essential across offshore assets, and notes potential for strong earnings growth as Asom is fully consolidated within an asset-light, service-led model, with Asom forming the core of its recurring earnings base.

From a value perspective, the transaction reflects three points.

First, it increases earnings attributable to shareholders as the group moves to full ownership of its core FPSO life-cycle platform. Second, the stake is acquired at around eight times FY2025 earnings, consistent with comparable offshore life-cycle service providers. Third, it simplifies the ownership structure, with Asom fully in-house and improving visibility over earnings contribution.

Overall, the transaction shifts the focus to earnings contribution, strengthening alignment between ownership and operations without changing the underlying operating base.

Asti: CEO acquires controlling stake through off-market transaction

Asti announced that its executive chairman and CEO, Eddie Ng, acquired 40 million shares on May 6 at S$0.09 per share via an off-market transaction, committing S$3.6 million and increasing his direct stake to 15.65 per cent from 10.54 per cent. The acquisition was executed at a 4.25 per cent discount to the last traded price prior to the trading halt, and establishes him as the controlling shareholder.

Ng previously founded iTrue Technologies in 2005. He has experience in semiconductor inspection and manufacturing systems, and prior involvement with Asti’s operating subsidiaries before taking on the CEO role in January 2024.

He stepped into the position following a period of governance lapses and trading suspension, with an initial focus on restoring compliance, stabilising operations and re-engaging customers. His increased stake further aligns management with the group’s capital base as the business transitions into a more stable operating phase.

The increase in his stake follows Asti’s trading resumption in January 2026 after completing a two-year restructuring, with the group emerging with a debt-free balance sheet and a refocused strategy centred on semiconductor back-end services, including tape-and-reel packaging and integrated circuit programming.

For FY2025, Asti reported revenue of S$36.9 million, up 11.8 per cent year on year, with gross margin expanding to 26.9 per cent from 11.5 per cent. The group returned to profitability, with net profit attributable to shareholders of S$1.1 million compared to a net loss of S$24.5 million in FY2024.

The group also generated operating cash flow of S$5 million and ended FY2025 with S$16.5 million in cash and positive working capital of S$21.8 million, following the repayment of approximately S$8.6 million in borrowings.

From a value perspective, the increase in ownership aligns control with a balance sheet that has been reset and an earnings base that has returned to profitability. It reflects a business that has stabilised post-restructuring, with further value dependent on execution and the scalability of its semiconductor services platform.

Fuxing China: CEO increases stake as dividend policy anchors payouts

Fuxing China’s CEO, Hong Shao Lin, increased his deemed interest in the company through a series of on-market transactions on May 4 and 5. Across four trades, he acquired a total of 87,000 shares for S$81,085, raising his deemed shareholding to 0.43 per cent of issued share capital. The purchases were conducted via the open market.

For FY2025, Fuxing reported net profit of 20.5 million yuan (S$3.8 million), up from 900,000 yuan in the previous year, supported by improved cost discipline and lower financing costs. Gross profit rose 8 per cent to 49.5 million yuan, with gross margin improving to 7.4 per cent.

As the fourth-largest zipper manufacturer globally in terms of sales value, the group’s revenue remains centred on the zipper segment, which accounted for 61.3 per cent of FY2025 revenue, alongside contributions from trading and processing.

While overall revenue declined, the processing segment delivered improved margins on higher efficiency and automation, supporting gross margin expansion. A site visit by KGI Securities in January 2026 highlighted the group’s integrated manufacturing base in Jinjiang with headcount reducing to about 1,100 from around 3,000 in 2007, reflecting increased automation across production lines to improve operating margins.

On Mar 31, Fuxing announced a dividend policy targeting a minimum annual payout of 15 per cent of profit attributable to equity holders for FY2026 through FY2028.

For FY2025, the board recommended a final dividend of 0.15 yuan per share, amounting to approximately three million yuan and representing about 15 per cent of profit attributable to shareholders. The policy formalises capital allocation discipline alongside the group’s improving earnings base and cash flow generation.

From a value perspective, the disposal of its subsidiary Jianxin generated proceeds of 45.6 million yuan and a gain of 20.2 million yuan. Fuxing’s borrowings declined by 91 million yuan, with the group moving into a net cash position of 62.6 million yuan, alongside operating cash flow of 76.2 million yuan.

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