CEO boosts Q & M stake following Q3 earnings growth

FOR the five trading sessions that spanned Nov 12 to 18, the Straits Times Index (STI) was unchanged, with the FTSE China A50 Index declining 1.4 per cent, the Hang Seng Index gaining 0.5 per cent and the FTSE Bursa Malaysia KLCI gaining 0.1 per cent.

Within the STI, ST Engineering S63 , Venture Corporation V03 , DBS D05 Group Holdings, Genting Singapore G13 and CapitaLand Integrated Commercial Trust C38U received the highest net institutional inflows from Nov 12 to 18.

Outside the STI, AEM Holdings AWX , UMS Holdings 558 , Mapletree North Asia Commercial Trust RW0U , Golden Agri-Resources E5H and Keppel Reit K71U received the highest net institutional inflows.

Overall, institutions were net sellers over the five sessions, with S$13.6 million of net outflow, with ComfortDelGro Corporation C52 , Singapore Exchange S68 , and Singapore Telecommunications Z74 seeing the highest net institutional outflows.

Share buybacks

There were 16 primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$55,730,528, not far from the S$59,497,760 filed for the preceding five sessions.

CapitaLand Investment 9CI , OCBC O39 and UOB U11 led the consideration tally, paying respective average prices of S$3.37, S$11.83 and S$27.64. Global Investments B73 led the buyback consideration tally for the non-STI stocks.

Secondary-listed Hongkong Land H78 bought back 2,576,100 shares, paying between US$5.765 and US$5.64 per share, while secondary listed Jardine Matheson Holdings J36 bought back 1,034,900 shares, paying between US$60.00 and US$59.83 per share.

The maximum price Jardine Matheson Holdings paid for its shares in the preceding week was also US$60.00.

Director and substantial shareholder transactions

The five trading sessions saw more than 70 changes in director interests and substantial shareholdings filed for close to 40 primary-listed stocks.

This included eight company director acquisitions with three disposals filed, while substantial shareholders filed 13 acquisitions and 11 disposals.

Q & M Dental

Between Nov 12 and 18, Quan Min Holdings acquired 7,584,300 shares of Q & M Dental Group (Singapore) QC7 (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 59.3 cents per share with a total consideration of S$4,497,276.

The acquisitions increased the deemed interest of founder and group CEO, Ng Chin Siau in Q & M from 51.60 per cent to 52.41 per cent.

Quan Min Holdings' direct holdings in Q & M also crossed above the 52.0 per cent threshold on Nov 16.

The acquisitions followed Q & M reporting on Nov 11 that its 9MFY21 (ended Sep 30) net profit had surged 154 per cent from 9MFY20, to S$35.4 million.

The group highlighted that it had grown stronger compared to the pre-Covid-19 period, with revenue rising by 58 per cent from S$36.5 million in Q4FY19 to S$57.7 million in Q3FY21, representing a 6.78 per cent quarterly compounded growth from Q4FY19 to Q3FY21.

Its Q3FY21 net profit after tax increased by 175 per cent to S$13.9 million, from S$5.1 million in Q3FY20.

Dr Ng attributed the group's strong financial performance and accomplishments to its corporate values and philosophy that enables the group to attain sustainable growth.

After founding the group in 1996, Dr Ng is presently 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.

As at Sep 30, Q & M's number of dental clinics in Singapore has grown to 90, from 81 as at Sep 30, 2020.

Similarly, in Malaysia, the number of dental clinics has increased to 38, compared to 33 previously.

To support this growth, the group has also increased its total number of dentists to 270 as at Sep 30, 2021, compared to 250 previously.

In Q3FY21, the company opened three new clinics in Singapore, in Canberra Street, Bedok Reservoir and IMM shopping mall.

Bonvests Holdings

On Nov 17, Bonvests Holdings B28 executive chairman and managing director Henry Ngo acquired 820,700 shares of the company for a consideration of S$787,872 at 96.0 cents per share.

This increased his total interest from 83.52 per cent to 83.72 per cent.

Ngo is the founder of Bonvests and responsible for mapping out the corporate and growth strategy of the group.

Under his leadership, the group has developed the property arm and diversified into waste management as well as hotel development and operations overseas.

The group announced on Nov 3 the completion of the acquisition of properties by a subsidiary, in the Ubud area of Melinggih Kelod Village, Payangan District, Gianyar Regency, Bali, Indonesia.

Asian Pay Television Trust

Between Nov 15 and 16, Dai Yung Huei, non-executive director of the trustee-manager of Asian Pay Television Trust S7OU (APTT) increased his deemed interest in APTT from 17.04 per cent to 17.15 per cent.

In total, 1,900,000 units of APTT were acquired by Araedis Investment for a consideration of S$260,200 at an average price of 13.7 cents per unit.

Araedis Investment has increased its direct stake in APTT from 15.00 per cent on 25 June 2020, while Dai was appointed a non-executive director of the trustee-manager of APTT on Aug 13, 2021.

Dai is also the chairman of Da Da Digital Convergence and the founder of Dafeng TV, the first publicly traded cable TV provider in Taiwan, which operates in domestic markets including New Taipei City and Kaohsiung City.

APTT is the first listed business trust in Asia focused on pay-TV and broadband businesses and has an investment mandate to acquire controlling interests in and to own, operate and maintain mature, cash generative pay-TV and broadband businesses in Taiwan, Hong Kong, Japan and Singapore.

On Nov 12, APPT reported stable revenue of S$75.5 million and higher Ebitda of S$46.2 million for its Q3FY21 (ended Sep 30).

For the 9MFY21, total revenue and Ebitda were S$223.5 million and S$136.8 million.

The Ebitda margin improved by 1.7 percentage points to 61.2 per cent for the quarter and 1.4 percentage points to 61.2 per cent for the 9 months, mainly driven by lower operating expenses.

On the results, CEO of the trustee-manager, Brian McKinley noted that the growth strategy was yielding results, with continued growth in subscribers and revenue, which has been increasing for 5 consecutive quarters in both Singapore dollars and NT$ compared to the prior corresponding period.

Credit Bureau Asia

Between Nov 11 and 16, Credit Bureau Asia TCU founder, executive chairman and CEO Koo Chiang acquired 138,300 shares of the company for a consideration of S$159,482, at an average price of S$1.15 per share.

This took his direct interest in Credit Bureau Asia from 68.00 per cent to 68.10 per cent.

His preceding acquisition in the credit information business was on Sep 10, with 17,600 shares acquired at S$1.25 per share.

Since establishing the credit information business in Singapore in 1993, Koo has over 20 years of experience in the credit information industry and is responsible for the group's strategic direction and overseeing its overall growth and performance.

IReit Global

On Nov 12, IReit Global Group UD1U non-executive director Bruno de Pampelonne acquired 150,000 units of the group at 65.0 cents per unit.

With a consideration of S$97,500, this increased his direct interest in IReit Global from 0.05 per cent to 0.06 per cent.

This followed his acquisition of 200,000 units at 65.0 cents per unit between Oct 28 and Nov 1.

He has some 35 years of experience in various segments of the financial markets, from debt and real estate to equity, and from banking to asset management.

He is currently a senior partner of Tikehau Capital and chairman of Tikehau Investment Management SAS in Paris, and chief executive officer of Tikehau Investment Management Asia in Singapore.

Tikehau Capital is a global alternative asset management group with 30.9 billion euro (S$47.5 billion) of assets under management as at Jun 30.

Tikehau Capital and City Developments jointly own IReit Global Group.

EnGro Corporation

On Nov 15, EnGro Corporation S44 chairman and chief executive officer Tan Cheng Gay acquired 15,800 shares of the company for a consideration of S$20,466.

At an average price of S$1.30 per share, this increased his total interest in the leading provider of building materials from 14.66 per cent to 14.67 per cent.

This followed his acquisition of 37,000 shares at S$1.29 per share on Oct 28 and 20,500 shares at S$1.40 per share on Aug 17.

Tan is a stalwart of the company, having been with EnGro Corporation since its inception, and was appointed as director in 1973.

He has since served as the executive director and steers the strategic direction and vision of the group.

Megachem

On Nov11, Megachem 5DS managing director Sidney Chew Choon Tee acquired 50,000 shares of the company for a consideration of S$21,250.

At 42.5 cents per share, this increased his total interest in the one-stop specialty chemical solutions provider from 35.47 per cent to 35.51 per cent.

Chew's preceding acquisitions were on Nov 8, with 48,000 shares acquired at 43.0 cents per share and Oct 22 with 10,000 shares acquired at 42.0 cents per share.

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