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INSIDE INSIGHTS

Earnings week sees fewer director filings

FOR the five trading sessions from May 3 through to May 9, the STI declined by 3 per cent while the Hang Seng Index and S&P/ASX 200 Index declined by 5.4 per cent and 0.8 per cent respectively.

This has brought the STI's 2019 total return through to May 9 to 8.4 per cent.

Share buybacks

There were nine primary-listed stocks conducting share buybacks over the five sessions ended May 9, with a total consideration of S$11.7 million. Japfa, AEM Holdings and Trek 2000 International commenced new buyback mandates.

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Director and substantial shareholder transactions

The five sessions spanning May 3 to 9 saw over 100 changes in director interests or substantial shareholdings filed for approximately 40 primary-listed stocks.

There were 12 company director acquisitions and two disposals filed, with substantial shareholders filing six acquisitions and 11 disposals.

ARA US Hospitality Trust

On May 9, ARA US Hospitality Trust (AUHT) debuted on SGX. AUHT is a hospitality stapled group comprising ARA US Hospitality Property Trust, a real estate investment trust, and ARA US Hospitality Management Trust, a registered business trust.

This is the first pure-play US upscale select-service hospitality portfolio to be listed on SGX with a market capitalisation of US$670 million.

AUHT offers investors a unique opportunity to gain exposure to a high quality, upscale select-service hospitality portfolio in the United States. The majority of the proceeds raised from the offering will be applied towards payment of the redemption proceeds to ARA XVI and repayment of the Existing Loan Facilities.

Distributable income is forecast to be US$26.7 million for the eight-month period of May 1 to Dec 31, 2019 (forecast period 2019) and US$40.8 million for the projection year 2020. This would imply an annualised distribution yield of 8 per cent and 8.2 per cent respectively for forecast period 2019 and projection year 2020.

The largest of the AUHT cornerstone investors are Gordon and Celine Tang who subscribed for 53.8 million units, representing a 9.5 per cent direct interest.

Mr Tang is the founder of Haiyi Holdings Pte Ltd in addition to being the group managing director of SingHaiyi Group, non-executive chairman of Chip Eng Seng Corporation as well as the non-executive chairman of OKH Global.

Fortress Minerals

On May 2, Fortress Minerals non-executive and non-independent director Loong Ching Hong acquired 1,250,000 shares of the listed company for a consideration of S$275,000. The married deal took his total interest in Fortress Minerals from 1.05 per cent to 1.30 per cent.

Mr Loong is presently the group's general manager of Selangor Dredging Berhad, a property development company listed on Bursa Malaysia and the holding company of SDB Mining, a controlling shareholder of Fortress Minerals.

In addition, he is a substantial shareholder and non-executive director of Norwest Minerals, a gold and base metals exploration company listed on the Australian Stock Exchange.

Fortress Minerals Group is a leading iron ore concentrate producer in Malaysia, renowned for its culture, innovation and ground-breaking development of infrastructure and mining assets in Bukit Besi, Malaysia. The stock debuted on the Catalist Board on March 27.

DBS Group Holdings

On May 6, DBS Group Holdings non-executive and independent director Olivier Lim Tse Ghow acquired 10,000 shares of the listed company for a consideration of S$265,300. This took his direct interest in the group to 0.00263 per cent.

Mr Lim is also the non-executive chairman of Certis CISCO Security Pte Ltd and Frasers Property Australia Pty Ltd. In addition, he is a director of Raffles Medical Group Ltd, Banyan Tree Holdings and Northlight School, and also serves as a member of the board of JTC Corporation.

MS Holdings

On May 2, MS Holdings executive director and CEO Jovan Yap Chin Hock increased his interest in the listed company from 85.91 per cent to 86.70 per cent. Mr Yap acquired 1.3 million shares of MS Holdings for a consideration of S$71,500. The preceding week saw him acquire 4.2 million shares of MS Holdings for a consideration of S$231,000.

Mr Yap is responsible for the overall management of the group's operations and supports executive chairwoman, Ng Chui Hwa in developing the corporate and business development strategies of the group.

Sing Investments & Finance

On May 6, FH Lee Holdings (Pte) Ltd acquired 40,800 shares of Sing Investments & Finance for a consideration of S$60,165.

This increased the total interest of Sing Investments & Finance's managing director, Lee Sze Leong, and deputy managing director, Lee Sze Siong, to 30.006 per cent and 30.048 per cent, respectively.

Cheung Woh Technologies

On May 2, Nexsuss Holdings Pte Ltd acquired 490,000 shares of Cheung Woh Technologies for a consideration of S$60,417. This took its substantial shareholding in the manufacturer and supplier of precision HDD components from 63.02 per cent to 63.18 per cent.

Cheung Woh Technologies finance and administrative director Law Yu Chui is deemed interested in the shares held by Nexsuss Holdings Pte Ltd. Ms Law is responsible for the group's finance and administrative matters, which include cash flow planning, foreign exchange management, financial analysis and human resource management.

Reclaims Global

Between May 2 and 6, Reclaims Global executive chairman Chan Chew Leh acquired 106,000 shares of the listed company for a consideration of S$23,720. This took Mr Chan's interest in Reclaims Global from 38.2 per cent to 38.3 per cent.

The Catalist-listed stock is an eco-friendly integrated service provider in the construction industry, specialising in the recycling of construction and demolition waste, customisation of excavation solutions and operating fleet management.

Mr Chan has worked in the construction industry since 1970s and is responsible for spearheading the group's corporate direction. He started his career as an independent sub-contractor in 1977 to undertake drainage works and external works for residential properties.

Noel Gifts International

Between May 2 and 6, Noel Gifts International managing director Alfred Wong Siu Hong acquired 94,800 shares of the listed company for a consideration of S$19,460.

This took his total stake in Noel Gifts International from 45.24 per cent to 45.32 per cent. Mr Wong's preceding acquisitions in the listed company were in Nov 2018 and involved 814,600 shares.

Mr Wong is the founder of Noel Gifts International, and has been its managing director since the company commenced operations.

With over 40 years of experience in the hampers, flowers and gifts business, he is in charge of the strategic planning, overall financial management and growth of the group.

Since 1997, Mr Wong has also been spearheading the property division, overseeing property investment and development.

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