CLI debuts, appoints 2 new execs, as chair builds stake

FOR the five trading sessions that spanned Sept 17 to 23, the Straits Times Index (STI) gained 0.2 per cent, with the FTSE China A50 Index, Hang Seng Index and FTSE Bursa Malaysia KLCI averaging a 1.1 per cent decline.

Within the STI, Singapore Telecommunications Z74 , CapitaLand Integrated Commercial Trust C38U , UOB U11 , Ascendas Reit A17U and CapitaLand Investment 9CI received the highest net institutional inflows from Sept 17 to 23.

Outside the STI, ARA Logos Logistics Trust K2LU , ESR-Reit J91U , Cromwell European Reit CWBU , SPH Reit SK6U and OUE Commercial Reit TS0U received the highest net institutional inflows.

This coincided with the inclusion of the five Reits, in addition to another five Reits and one business trust in the FTSE EPRA Nareit Global Real Estate Index series, effective from the Sept 17 close.

Overall, institutions were net buyers over the five sessions, with S$301 million of net inflow, while DBS D05 , OCBC O39 and Yangzijiang Shipbuilding BS6 (Holdings) saw the highest net institutional outflows.

Share buybacks

There were nine primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$28.4 million, less than the S$34.0 million consideration for the preceding five sessions.

OCBC, UOB and The Hour Glass AGS led the consideration tally.

OCBC bought back 1.37 million shares at an average price of S$11.52 per share, while UOB bought back 360,000 shares at an average price of S$25.58 per share.

The Hour Glass bought back 1.5 million shares at an average price of S$1.56 per share.

Secondary-listed Hongkong Land H78 also bought back shares between Sept 17 and 23, paying between S$4.54 and S$4.31 per share.

Director and substantial shareholder transactions

The five trading sessions saw 90 changes in director interests and substantial shareholdings filed for more than 30 primary-listed stocks.

This included 16 company director acquisitions with three disposals filed, while substantial shareholders filed eight acquisitions and three disposals.

CapitaLand Investment

Between Sept 20 and 23, CapitaLand Investment (CLI) chairman and non-executive non-independent director, Miguel Ko Kai Kwun acquired 1.3 million shares of the company at an average price of S$3.16 per share.

With a consideration of S$4,111,170, the transactions took his direct interest in CLI to 0.03 per cent.

Prior to his appointment as CLI chairman, Mr Ko was deputy chairman of CapitaLand before his appointment as non-independent chairman on the retirement of Ng Kee Choe following on from the April 2021 annual general meeting.

On Sept 20, CLI made its trading debut on SGX, following CapitaLand's significant restructure to form two distinct entities - CLI, the listed real estate investment management business; and CapitaLand Development, the privatised property development arm.

As a global real estate investment manager, with a strong Asia foothold, CLI maintained close to S$120 billion of real estate assets under management of which more than 80 per cent were located in Asia as of June 30.

At the same time, CLI's real estate funds under management at more than S$80 billion were held via six listed Reits and business trusts, and over 20 private funds.

CLI debuted at S$2.95 per share, with a low of S$2.90 on Sept 21 and a high of S$3.46 on Sept 23.

At S$98 million, CLI's average daily trading turnover over the four sessions was markedly higher than CapitaLand's average daily trading turnover of S$37 million a day in the 2021 year through to Sept 9, and S$33 million in 2020.

Institutions were net buyers of the stock over the four sessions, while retail investors were net sellers, possibly attributed to the fact that by Sept 23, CLI had closed 20 per cent above the CLI share price used to determine shareholder's pro-rata entitlements under the restructuring scheme.

On Sept 20, CLI also announced two additions to its leadership council, expected to take effect by end November 2021.

Simon Treacy will be joining CLI as CEO of private equity real estate, responsible for driving the growth of CLI's private equity real estate business.

He was formerly the managing director, global chief investment officer and head of US equity for BlackRock Real Estate.

Patrick Boocock will be assuming the role of CEO of private equity alternative assets, in charge of building and growing CLI's private fund business in alternative assets to expand the group's unlisted fund portfolios.

Mr Boocock was previously managing partner and head of Asia at Brookfield Asset Management.

Each of the two appointees maintain a significant track record of more than 20 years in real estate, and extensive experience living and working in Asia for leading real estate investment managers.

United Global

On Sept 16, United Global 43P non-executive chairman Edy Wiranto acquired 663,700 shares of the Catalist-listed company for a consideration of S$272,117.

At 41.0 cents per share, the married deal took his total interest in United Global from 6.91 per cent to 7.12 per cent.

This followed his acquisition of 1.0 million shares at 40.5 cents per share on May 31, and 2.6 million shares at 42.0 cents per share on March 1.

He is responsible for the overall strategic direction of the group. His career spans over 30 years with top management positions in mining, shipping, construction and heavy equipment leasing business.

The independent lubricant manufacturer has a market value of more than S$120 million and listed on Catalist in July 2016, with a fully subscribed placement at 25.0 cents per share.

On Aug 11, the company reported its H1FY21 (ended June 30) net profit attributable to shareholders increased 91.9 per cent from H1FY20 to US$3.2 million, on the back of an increase in the share of profit from its 60 per cent owned lubricants joint venture business.

Aztech Global

Between Sept 21 and 22, Aztech Global 8AZ executive chairman and CEO Michael Mun Hong Yew increased his deemed interest in the company from 70.01 per cent to 70.07 per cent.

Acquired at an average price of S$1.03 per share, the consideration of the 477,600 shares was S$492,220.

Mr Michael Mun is responsible for identifying and implementing business growth strategies across the group as well as overseeing the group's growth and operating functions.

He has more than 40 years of experience in the electronics industry.

On Sept 17, Aztech Global executive director and COO Jeremy Mun Weng Hung acquired 50,000 shares of the company at S$1.05 per share.

With a consideration of S$52,500, this took his total interest in Aztech Global from 0.02 per cent to 0.03 per cent.

Mr Jeremy Mun is responsible for the day-to-day operation and management of the group's businesses, in particular, the manufacturing facilities in China and Malaysia.

Supported by its core strengths in R&D, design, engineering and manufacturing, the key products of Aztech Global are IoT devices, data-communication products and LED lighting products.

On July 30, Mr Michel Mun maintained that barring unforeseen circumstances, the group was cautiously optimistic about its performance for the rest of 2021, based on its healthy balance sheet position, strong order book secured to date and measures in place to mitigate the threat of Covid-19 infection resurgence.

In its H1FY21 (ended June 30), the net profit of Aztech Global more than doubled from H1FY20 to S$29.4 million, with the net profit margin improving to 11.8 per cent for H1FY21.

Tai Sin Electric

On Sept 20, Tai Sin Electric 500 executive director and CEO Bernard Lim Boon Hock acquired 350,000 shares of the company for a consideration of S$133,000.

At an average price of 38.0 cents per share, this took Mr Lim's total interest in Tai Sin Electric from 16.99 per cent to 17.07 per cent, and followed his acquisition of 504,600 shares at 38.4 cents per share between Sept 2 and 6 and 2,312,600 shares at 37.9 cents per share between Aug 27 and Sept 1.

Fortress Minerals

Between Sept 17 and 20, Fortress Minerals OAJ non-executive and non-independent director Loong Ching Hong acquired 60,000 shares of the Catalist-listed company for a consideration of S$23,850.

At 39.8 cents per share, this took his total interest in Fortress Minerals from 1.44 per cent to 1.45 per cent. Mr Loong has increased his total interest from 1.31 per cent at the end of 2020.

Fortress Minerals Group is a leading iron ore concentrate producer in Malaysia, producing magnetite iron ore concentrate mined from the East, Valley and West Deposits in the Bukit Besi Mine, primarily sold to steel mills and trading companies in China and Malaysia.

On July 14, Fortress Minerals reported its Q1FY22 (ended May 31) revenue of US$17.3 million, which was up 143.8 per cent from Q1FY21, on the back of a 61.6 per cent increase in sales volume with a record average realised selling price of iron ore.

Fortress Minerals is expected to report its H1FY22 results in early October.

Hafary Holdings

Between Sept 17 and 20, Hafary Holdings 5VS executive director and CEO Low Kok Ann acquired 97,700 shares of the company for a consideration of S$16,218.

At 16.6 cents per share, this increased his total interest in the leading building material supplier from 8.49 per cent to 8.52 per cent, and followed his acquisition of 200,000 shares at 16.5 cents per share between Sept 3 and 6 and 130,000 shares at 16.7 cents per share on Sept 1.

GSH Corporation

Between Sept 20 and 21, GSH Corporation BDX executive chairman Sam Goi Seng Hui acquired 61,000 shares at 17.0 cents per share.

With a consideration of S$10,472, this increased his total interest in the property developer, and hotel and resort operator from 63.59 per cent to 63.60 per cent.

RE&S Holdings

On Sept 22, RE&S Holdings 1G1 (RE&S) executive director and president Hiroshi Tatara acquired 22,500 shares of the Catalist-listed company for a consideration of S$4,408.

At an average price of 19.6 cents per share, this increased his total interest in RE&S from 62.24 per cent to 62.25 per cent.

Mr Tatara is also the founder of RE&S and has been active in overseeing the group's overall corporate strategy. He relocated to Singapore from Osaka, Japan in 1976.

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