Chip Eng Seng chair builds stake, CLI conducts buybacks

FOR the five trading sessions that spanned Oct 8 to 14, the Straits Times Index (STI) gained 2.1 per cent, with the FTSE China A50 Index rising 2.3 per cent, the Hang Seng Index adding 1.0 per cent and FTSE Bursa Malaysia KLCI gaining 1.7 per cent.

Within the STI, UOB U11 , OCBC O39 , Singapore Telecommunications Z74 , Jardine Cycle & Carriage C07 and Singapore Airlines C6L : C6L 0% received the highest net institutional inflows from Oct 8 to 14.

Outside the STI, Singapore Press Holdings T39 , Geo Energy Resources RE4 , Ascott Residence Trust HMN , Raffles Medical Group BSL and CDL Hospitality Trusts J85 : J85 0% received the highest net institutional inflows.

Overall, institutions were net buyers over the five sessions, with S$145 million of net inflow, while DBS D05 , Singapore Exchange S68 and Keppel Infrastructure Trust A7RU : A7RU 0% saw the highest net institutional outflows.

Share buybacks

There were 18 primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$38.7 million.

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UOB, OCBC and CapitaLand Investment 9CI : 9CI 0% (CLI) led the consideration tally.

CapitaLand Investment bought back its shares between Oct 11 and 12 at an average price of S$3.37 per share.

The company noted that given it was listed only on Sep 20, and prior to Oct 11 had not made any share purchases under the current share purchase mandate, it did not have any treasury shares.

CLI's current intention for its treasury shares is to utilise them for the purpose of its share schemes.

Utilising treasury shares in lieu of issuing new shares enables the company to take advantage of tax deductions under the current taxation regime and mitigates the dilution impact on existing shareholders.

CLI also added that subject to prevailing market conditions, it intends to continue to make purchases of its shares to increase its number of treasury shares in readiness for partially or fully satisfying any share award obligations under the company's share schemes.

As at Oct 14, the CLI share price had gained 16.6 per cent above the share price used to determine shareholder's pro-rata entitlements under the restructuring scheme prior to its debut on Sep 20.

Secondary-listed Hongkong Land H78 : H78 0% also bought back shares for each of the five sessions between Oct 8 and 14, paying between US$4.97 and US$4.86 per share.

Secondary-listed Jardine Matheson Holdings J36 : J36 0% bought back shares for four of the five sessions paying between US$55.00 and US$52.81 per share.

Its director David Hsu also acquired 20,000 shares of the company at an average price of US$53.69 between Oct 8 and 11.

Director and substantial shareholder transactions

The five trading sessions saw 70 changes in director interests and substantial shareholdings filed for 30 primary-listed stocks.

This included 10 company director acquisitions with one disposal filed, while substantial shareholders filed 10 acquisitions and three disposals.

Chip Eng Seng Corporation

Between Oct 11 and 12, Chip Eng Seng Corporation C29 : C29 0% non-executive chairman Celine Tang acquired 1.4 million shares of the company for a consideration of S$588,000.

At 42.0 cents per share, the acquisition increased her direct interest in the homegrown construction and property development group from 37.10 per cent to 37.28 per cent.

Her preceding acquisition was on May 24, 2021 with 6.23 million shares bought at 43.0 cents per share.

Tang was appointed non-executive chairman and non-independent and non-executive director of Chip Eng Seng Corporation in October 2018.

She is also the group managing director of SingHaiyi Group 5H0 and holds the position of non-executive chairman at integrated property developer OKH Global S3N : S3N 0% that focuses on logistics and industrial properties.

She is the spouse of Gordon Tang, an entrepreneur who invests in real estate and investments, and a philanthropist who drives sports-related charity activities.

In addition, she is a non-executive director of American Pacific International Capital, a diversified international investment holding company with businesses throughout the US and China.

On Aug 5, Chip Eng Seng reported a profit before tax of S$10.9 million and profit after tax of S$9.2 million, for its first half fiscal year 2021 (ended June 30) reversing from a loss before tax of S$25.2 million and loss after tax of S$25.7 million in the first half of FY20 respectively.

On the property development side, revenue increased by 112.4 per cent year on year to S$419.1 million mainly attributable to the sale of a development site at Gladstone Street, South Melbourne and higher contributions from Park Colonial and Kopar at Newton, partially offset by lower progressive revenue recognition from the fully sold and completed Grandeur Park Residences.

For its construction segment, revenue increased 82.2 per cent year on year to S$164.6 million. The increase was mainly attributable to CAG, PUB C4A, Tampines N8C31 and Sengkang N4C39 and C40 and new revenue contribution from projects under CES Salcon, which was acquired in December 2020.

On Sep 29, Chip Eng Seng Corporation announced that its wholly owned subsidiary, CES Engineering & Construction, has been appointed by the Housing & Development Board as the replacement main contractor for the remaining building works to be undertaken for the build-to-order housing project at Marsiling Grove in Woodlands.

The group also noted that its first half FY21 revenue from the hospitality segment decreased by 5.9 per cent to S$18.8 million mainly due to lower contribution from Park Hotel Alexandra, partially offset by higher contributions from the other hotels.

However, the education segment saw first half FY21 revenue increase by 50.7 per cent to S$17.3 million mainly due to higher contributions from the Invictus-brand international schools and Primus Schoolhouse.

With the two Invictus schools in Singapore obtaining EduTrust certification, the group noted that Invictus Singapore will be able to accept student pass holders as an additional source of enrolment growth when the border reopens.

Asian Pay Television Trust

Between Oct 7 and 13, Dai Yung Huei, non-executive director of the trustee-manager of Asian Pay Television Trust S7OU : S7OU 0% (APTT) increased his deemed interest in APTT from 16.93 per cent to 17.04 per cent.

In total, 1,933,000 units of APTT were acquired by Araedis Investment for a consideration of S$254,074 at an average price of 13.1 cents per unit.

This followed Dai's acquisition of 2,090,800 units at 13.0 cents per share between Oct 1 and 4.

He was appointed a non-executive director of the trustee-manager of APTT on Aug 13.

Dai is 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.

Between 1996 and 2019, Dai was the chairman of Dafeng TV. Under his stewardship, it obtained its cable television licence in Taiwan, and successfully listed the company on the Taiwan Stock Exchange in 2002.

Dafeng TV was an early adopter of Gigabit Passive Optical Networks and Fibre-to-the-home network structure.

Dai also sits on the board of Dafeng TV, Taipei City University of Science and Technology, as well as Gnalu Education Foundation.

He has increased his deemed interested in APTT from 16.01 per cent at the time of his appointment.

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.

Raffles Education Corporation

On Oct 12, Raffles Education Corporation NR7 : NR7 0% lead independent non-executive director Lim How Teck acquired 1 million shares of the company for a consideration of S$88,000.

At 8.8 cents per share, this took his total interest in the education group from 0.07 per cent to 0.15 per cent.

His preceding acquisition was on Sep 6, with 1 million shares acquired at 9.6 cents per share.

Lim is also the chairman of Heliconia Capital Management, ARA Logos Logistics Trust and Boogle Group. He is also a board director of CSE Global, Mizuho Securities (Singapore), Heliconia Holdings, Yang Kee Logistics (Singapore), Singapore DTT Corporation and Nexusun International.

Keong Hong Holdings

On Oct 6, Keong Hong Holdings 5TT : 5TT 0% substantial shareholder, Liu Haiyan increased her deemed interest in the company from 23.99 per cent to 24.08 per cent.

The 199,000 shares were acquired for a consideration of S$68,655 at 34.5 cents per share.

Liu has increased her deemed interest in Keong Hong Holdings from 21.00 per cent as at Dec 17, 2020.

Keong Hong Holdings completed its FY21 on Sep 30 and is expected to report financial results in the final week of November.

GSH Corporation

On Oct 8, GSH Corporation BDX : BDX 0% executive chairman Sam Goi Seng Hui acquired 99,800 shares of the company at 16.8 cents per share, with a consideration of S$16,766.

His total interest in the property developer, hotel and resort operator is 63.62 per cent.

This followed his acquisition of 434,400 shares at 17.0 cents per share on Sep 23.

GSH Corporation noted in August that the recovery of its hotel segment would mostly depend on international leisure travel being permitted and the type of measures taken by the Malaysia government, and when such measures are subsequently relaxed to allow food and beverage (F&B) dine-in and staycation packages.

Following the Oct 10 announcement that Malaysia had vaccinated 90 per cent of its adult population, the share price of GSH Corporation subsequently gained 6.6 per cent to 17.9 cents at the Oct 14 close.

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