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INSIDE INSIGHTS

Director filing momentum returns

FOR the five trading sessions spanning May 15 to 21, the Straits Times Index (STI) gained 1.3 per cent with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging a 3.1 per cent gain. This has brought the STI's decline in total return for the 2020 year to May 21 to 20.8 per cent.

Over the five sessions, the iEdge S-Reit 20 Index gained 4.6 per cent bringing its decline in total return for the 2020 year to May 21 to 13.9 per cent.

Share buybacks

There were eight primary-listed stocks conducting share buybacks over the five sessions that spanned May 15 to 21 with a total consideration of S$5.6 million, higher than the S$1.7 million for the preceding week.

Singapore Technologies Engineering (STE) led the buyback tally, buying back one million shares in clips of 500,000 shares on May 20 and 21. At an average price of S$3.19 per share, these were the first buybacks conducted by STE on the new mandate approved on May 15. The preceding mandate saw the global technology, defence and engineering group repurchase 8,299,100 shares, representing 0.27 per cent of its issued shares (excluding treasury shares) as of the previous mandate date on April18, 2019.

Director and substantial shareholder transactions

The five trading sessions spanning May 15 to 21 saw 110 changes in director interests and substantial shareholdings, filed for more than 40 primary-listed stocks. This included 18 company director acquisitions, with four disposals filed, and substantial shareholders filing 10 acquisitions with seven disposals.

Luxking Group Holdings

On May 15, Fullwealth Trading Ltd increased its direct interest in Luxking Group Holdings from 14.65 per cent to 18.83 per cent. Acquired via a married deal, the consideration of the 529,500 shares was S$105,900 at 20 cents per share.

Luxking Group Holdings executive chairman and CEO Leung Chee Kwong is deemed to be interested in the shares held by Fullwealth Trading by virtue of his 100 per cent shareholding in Fullwealth Trading.

Mr Leung is a founder of Luxking Group Holdings and is responsible for the formulation and execution of overall business strategies and policies as well as the overall management of the group.

Back on Feb 26, the manufacturer of pressure-sensitive adhesive tape products in China reported its H1 FY20 (ended 31 Dec). Group revenue increased 15 per cent year on year (yoy) attributed to broad-based sales growth across its business segments. This saw the group narrow its loss after tax by 62.1 per cent yoy to 3.5 million yuan (S$699,400) in H1 FY20.

Mr Leung has more than 20 years of experience in the adhesive tape business. He was also previously the vice-manager of Wingtai Adhesive Product Factory Co Ltd from 1984 and subsequently was promoted to general manager in 1989.

Singapore Technologies Engineering

Further to the listed company leading the buyback tally for the past five sessions, on May 15, Singapore Technologies Engineering (STE) non-executive and independent director Lim Chin Hu acquired 30,000 shares for a consideration of S$98,400. At S$3.28 per share, this took his direct interest in STE from 44,400 shares to 74,400 shares. Other listed companies where Mr Lim also serves as a director include Singapore Exchange and Nasdaq-listed, Kulicke & Soffa Inc.

Roxy-Pacific Holdings

Between May 14 and 20, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 209,800 shares of the listed company for a consideration of S$68,185. At 32.5 cents per share, the transaction followed his acquisition of 100,000 shares, also at 32.5 cents per share between May 6 and 13 and 50,000 shares at 32 cents per share on May 4.

Mr Tan maintains a 0.77 per cent interest in Roxy-Pacific Holdings. He has been a non-executive director of Roxy-Pacific Holdings since December 2006. He was re-designated from the position of non-executive and non-independent director to independent director in January 2012 and was last re-elected as director in April 2018.

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings. He is also currently the managing director of Winmark Investments Pte Ltd, Corporate Brokers International Pte Ltd and ZhenXing Commercial Consultancy (Shanghai) Co Ltd.

Koda

Between May 15 and 18, Koda lead independent director Tan Choon Seng acquired 100,000 shares of the listed company for a consideration of S$35,760. At an average price of 35.76 cents per share, this took his interest in the Original Design Manufacturer of furniture to 0.12 per cent.

Mr Tan was first appointed to the Koda board on Nov 18, 2016 as an independent director. He is currently the lead independent director, chairman of the audit committee and member of the remuneration committee and nominating and governance committee.

He has considerable experience from senior leadership roles and directorships held at listed companies and multinationals.

Hwa Hong Corporation

On May18, Hwa Hong Corporation (Hwa Hong) substantial shareholder David Ong Eng Hui acquired 105,600 shares of the listed company for a consideration of S$30,624 at 29 cents per share.

Dr Ong has gradually increased his total interest in Hwa Hong from 5.32 per cent at the end of 2018, to 6.21 per cent as of May 18 .

The acquisition also increased the deemed and hence total Hwa Hong interest of his father, Steven Ong Kay Eng, to 16.10 per cent.

CSC Holdings

On May 14, CSC Holdings substantial shareholders, Chiu Hong Keong and Khoo Yok Kee, acquired 2 million shares of the listed company for a consideration of S$30,000. At a price of 1.5 cents per share, the acquisition increased their total interest in CSC Holdings from 7.98 per cent to 8.06 per cent.

Back on Feb 13, CSC Holdings reported that for the 9M FY20 the group recorded net profit before tax of S$5.5 million, a turnaround from a loss before tax of S$10.3 million in 9M FY19.

JEP Holdings

Between May 14 and 19, JEP Holdings executive director Zee Hoong Huay acquired 200,000 shares of the Catalist-listed company for a consideration of S$39,000. At an average price of 19.5 cents per share, the acquisitions increased his total interest in JEP Holdings from 15.41 per cent to 15.45 per cent.

He is a veteran in the metal tooling and precision engineering industries with over 30 years of industrial experience and capabilities.

Mr Zee, the co-founder and managing director of JEP Industrades Pte Ltd, joined the company as executive director on Aug 27, 2015. He has gradually increased his total interest in JEP Holdings from 14.77 per cent on July 7, 2019.

LHT Holdings

On May 19, LHT Holdings chairman, managing director and CEO Yap Mui Kee acquired 19,800 shares of the listed company for a consideration of S$12,290.

At an average price of 62.1 cents per share, this took her total interest in the manufacturer of high quality wooden pallets, boxes and crates from 13.93 per cent to 13.97 per cent.

Ms Yap's preceding acquisitions were on April 27 with 27,800 shares acquired at 57.0 cents per share, and on April 6 with 50,000 shares bought at 57.6 cents per share.

Ms Yap has been the executive director of the company since Jan 2, 1988 and is in charge of all sales and marketing functions of the group. After her appointment as acting managing director on Feb 26, 2016, she became chairman, managing director and CEO on Feb 10, 2017.

She has over 25 years of experience in sales and marketing and plays a key role in exploring opportunities in new markets. Part of her responsibility is also to monitor market developments and streamline the company's product development efforts according to market demands.

Ms Yap also spearheads the group's RFID (radio frequency identification) ECR (efficient consumer response) pallet tracking system and is actively involved in the group's ECR pallet rental business in Singapore and Malaysia.

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

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