Director Eric Low builds his Hafary and Oxley stakes

FOR the 5 trading sessions that spanned Mar 11 to 17, the Straits Times Index (STI) gained 2.7 per cent, with the FTSE China A50 Index declining 2.2 per cent, the Hang Seng Index gaining 2.7 per cent and the FTSE Bursa Malaysia KLCI adding 1.1 per cent.

Overall, institutions were net buyers over the 5 sessions with S$155 million of net inflow, following on from a net outflow of S$145 million for the preceding 5 sessions.

UOB, U11 DBS Group Holdings, D05 Singapore Airlines, C6L OCBC O39 and Keppel Corporation BN4 : BN4 0% received the highest net institutional inflows for the 5 sessions through to Mar 17.

Meanwhile, Mapletree North Asia Commercial Trust, RW0U CapitaLand Investment, 9CI Yangzijiang Shipbuilding (Holdings), BS6 Hongkong Land H78 and UOL Group U14 : U14 0% reported the highest net institutional outflows for the 5 sessions.

Share buybacks

There were 16 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$36.2 million, lower than the S$46.6 million for the preceding week.

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Keppel Corporation again led the consideration tally, buying back 4,298,000 shares at an average price of S$6.12 per share. As at Mar 17, Keppel had bought back 1.48 per cent of its issued shares excluding treasury shares under its current share buyback mandate.

Director and substantial shareholder transactions

The 5 trading sessions saw 65 changes to director interests and substantial shareholdings filed for 30 primary-listed stocks.

This included 14 company director acquisitions with 2 disposals filed, while substantial shareholders filed 10 acquisitions and 3 disposals.

On Mar 14, Temasek increased its deemed interest in AEM Holdings AWX : AWX 0% to above the 11.0 per cent threshold, after increasing its deemed interest above the 10.0 per cent threshold on Mar 7.

Temasek became AEM's largest shareholder following a private placement to an indirect wholly-owned subsidiary completed on Aug 31, 2021.

Hafary Holdings

On Mar 15, Hafary Holdings 5VS : 5VS 0% non-independent non-executive director Eric Low See Ching acquired 35,574,580 shares of the company in a married deal with substantial shareholder Tee Wee Sien.

Tee sold his 8.26 per cent direct interest in Hafary Holdings to Low at 18.5 cents per share.

The filing showed that Tee still maintained a 0.44 deemed interest in the company, while Low increased his direct interest in the company from 16.18 per cent to 24.44 per cent.

The consideration for the married deal was S$6,581,297. Upon completion of the acquisition, Low and his concert parties, hold, in aggregate, 38.14 per cent of the total issued capital in the company.

Such an increase would normally trigger the requirement for a potential mandatory general offer (MGO) to be made by Low and his concert parties under Rule 14 of the Singapore Code on Takeovers and Mergers.

However, on Mar 4, Low had applied to the Securities Industry Council for dispensation from the requirement to make the Potential MGO with written confirmation that the majority shareholder of the company, Hap Seng Investment Holdings, had provided an irrevocable undertaking not to accept the Potential MGO, if made.

At the time, Hap Seng Investment Holdings held the 50.82 per cent of the total issued and paid up capital in the company.

The Securities Industry Council subsequently waived the requirement on Mar 9, subject to compliance with the conditions on dispensation in the Singapore Code on Takeovers and Mergers.

Between Mar 16 and 17, Low further acquired another 3,885,300 shares of Hafary Holdings in more married deals, also at 18.5 cents per share.

This further increased his direct interest in the company from 24.44 per cent to 25.35 per cent.

On Feb 22, Hafary Holdings reported that for its FY21 (ended Dec 31), attributable net profit grew 120.2 per cent to S$11.58 million in FY21.

The group registered FY21 revenue of S$130.1 million compared to S$84.3 million during FY20 and S$108.4 million in FY19.

Hafary Holdings is organised into 2 core business segments.

The increase in revenue for the general segment was supported by an active resale market and robust demand from home buyers.

These home buyers were observed to prefer the certainty of getting their flats in the resale market and avoid the construction delays for Build-To-Order HDB flats, caused by manpower shortages and supply chain disruption.

Customers of the general segment include homeowners, architecture, interior design and renovation firms.

At the same time, the increase in revenue for the project segment was attributed to pent-up demand in the construction and renovation sector in 2021.

Customers of the project segment include architecture firms, property developers and construction companies.

Prior to his appointment as non-independent non-executive director in January 2014, Low served on the board as executive director and in the company as CEO.

Low is also executive director and deputy CEO of Oxley Holdings. 5UX : 5UX 0% On Mar 16, Low also acquired 50,000 shares of Oxley Holdings at 17.3 cents per share.

He maintains a 28.12 per cent direct interest in Oxley Holdings.

Tai Sin Electric

Between Mar 10 and 14, Tai Sin Electric 500 : 500 0% executive director and CEO Bernard Lim Boon Hock acquired 393,500 shares of the company at an average price of 38.9 cents per share.

With a consideration of S$153,260, this took his total interest in Tai Sin Electric from 17.21 per cent to 17.29 per cent.

His preceding acquisitions were on Feb 16 with 550,000 shares acquired at 39.0 cents per share and on Sep 22, 2021, with 71,100 shares acquired at 37.5 cents per share.

Lim has gradually increased his total interest in Tai Sin Electric from 14.82 per cent at the end of 2019.

He has been an executive director of Tai Sin Electric since September 1997.

Creative Technology

On Mar 11, Creative Technology C76 : C76 0% independent non-executive director George Yeo Yong Boon acquired 50,000 shares of the company at S$2.51 per share.

With a consideration of S$125,500 this took his interest from 0.19 per cent to 0.26 per cent.

Yeo has been acquiring shares in Creative Technology since Feb 11.

He was appointed to the board of the company on Nov 15, 2021.

He has more than 40 years of experience in both the public and private sectors and was chairman of Hong Kong listed Kerry Logistics Network from 2012 to 2019 and senior adviser to Kuok Group from 2019 to 2021.

Yeo has also been an independent non-executive director of Hong Kong-listed AIA Group since 2012 and Nasdaq-listed Pinduoduo since 2018.

Frencken Group

On Mar 11, Frencken Group E28 : E28 0% chairman and non-executive non-independent director Gooi Soon Chai acquired 50,000 shares of the company at S$1.53 per share.

With a consideration of S$76,500, this took his total interest in the integrated technology solutions company from 23.47 per cent to 23.48 per cent.

This followed his acquisition of 100,000 shares at S$1.50 per share between Mar 7 and 8 and 50,000 shares at S$1.92 per share on Dec 15.

Appointed as the group's chairman in August 2016, he has over 30 years of experience in the global technology industry.

Uni-Asia Group

On Mar 16, Uni-Asia Group CHJ : CHJ 0% executive director and CEO Kenji Fukuyado acquired 50,000 shares of the company for a consideration of S$55,993.

At S$1.12 per share, this took his total interest in Uni-Asia Group from 1.72 per cent to 1.78 per cent.

His preceding acquisition was back on Dec 2, 2020 with 50,000 acquired at an average price of 63.3 cents per share.

Fukuyado was appointed Uni-Asia Group CEO in April 2020.

He joined the group in 2001 and has over 30 years of experience in the finance industry, including structured finance such as tax lease, asset finance, loan syndication, corporate finance, and asset management.

On Feb 28, Uni-Asia Group reported a net profit of US$18.0 million in FY21 (ended Dec 31), the highest net profit recorded since its listing and this was a strong recovery from the loss of US$7.5 million in FY20.

The alternative investment company, asset manager and integrated service provider of vessels and properties also noted that the group continued to cut its borrowings, reducing debt levels from US$114.0 million a year earlier to US$83.8 million as at Dec 31.

Megachem

Between Mar 15 and 16, Megachem 5DS : 5DS 0% managing director Sidney Chew Choon Tee acquired 20,000 shares of the company at 45.0 cents per share.

This increased his total interest in the one-stop specialty chemical solutions provider from 35.63 per cent to 35.65 per cent.

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