Fifty director acquisitions filed; Clearbridge Health debuts on Catalist

THE five trading sessions spanning Dec 15 to 21 saw the Straits Times Index (STI) decline 1.6 per cent. Notable corporate actions over the week included Singtel's 6.8 cent interim dividend and 3.0 cent special dividend that went ex-div on Dec 18.

The STI's dividend-inclusive return for the year through to Dec 21 came to 21.3 per cent, compared to an average 18.7 per cent return for the benchmarks of Japan, Hong Kong and Australia.

There were 15 stocks that conducted share buybacks over the five sessions with a total consideration of S$13.0 million, a similar pace to the past two weeks. OCBC again led the buyback tally, accounting for three-quarters of the S$13.0 million. Following OCBC in the tally were Silverlake Axis, Singapore Post and Q & M Dental Group.

Over the five sessions, 66 SGX primary-listed stocks lodged 175 changes in interests of directors or substantial shareholders. There were 50 director acquisitions and one disposal filed, with substantial shareholders filing 26 acquisitions and four disposals.

Ongoing acquisitions were filed for Accrelist, Avi-Tech Electronics and UOB-Kay Hian Holdings. Accrelist executive chairman and managing director Terence Tea Yeok Kian continued to build his stake in the Catalist-listed stock, taking his total holding in the company to 23.03 per cent, which has gradually increased from 20.23 per cent at the end of 2016.

Avi-Tech Electronics founder and CEO, Lim Eng Hong, boosted his stake in the company to 35.0267 per cent, which has gradually increased from 34.2893 per cent at the end of 2016.

UOB-Kay Hian Holdings chairman and managing director Wee Ee Chao also boosted his total stake in the stock to 26.47 per cent, which has been gradually built higher from 25.62 per cent at the beginning of the year.

GSH Corporation

GSH Corporation executive chairman Sam Goi Seng Hui increased his stake in the property developer over four sessions spanning Dec 15 to 20. Mr Goi acquired 3,524,800 shares of GSH Corporation, taking his direct stake in the stock to 49.36 per cent (from 49.18 per cent). The 3,524,800 shares were acquired at an average price of S$0.4997.

Mr Goi's preceding transaction was on Aug 29, when four million shares were acquired at S$0.51 per share. Back in November, GSH Corporation reported a Q3FY17 (ended Sept 30) net profit after tax of S$2.9 million, compared to S$1 million in its Q3FY16.

Following on from the completion of the investment into the food logistics hub (Henan Zhongyuan on March 10) the group recorded S$1.2 million share of profit from the associated company in its Q3FY17.

Centurion Corporation

On Dec 19 and 20, Centurion Corporation non-executive directors David Loh Kim Kang and Han Seng Juan increased their direct stakes in the stock. Mr Han acquired 3.8 million shares, taking his direct stake in Centurion Corporation to 1.007 per cent, while Mr Loh acquired 1,974,300 shares, taking his direct stake to 2.52 per cent.

Mr Loh and Mr Han also maintain shareholding interests in Centurion Global Ltd, and its wholly-owned subsidiary Centurion Properties Pte Ltd. This boosts the respective total interests of Mr Loh and Mr Han in Centurion Corporation to 55.561 per cent and 54.969 per cent.

As noted in this column last month, Centurion Corporation reported that for its Q3FY17 (ended Sept 30) net profit from core business operations grew 43 per cent yoy to S$10.2 million with revenue growing 15 per cent yoy to S$32.3 million.

Centurion Corporation owns and operates workers and student accommodation assets across Singapore, Malaysia, Australia, the United Kingdom and the United States. Its workers accommodation assets are managed under the Westlite brand and its student accommodation assets are managed under the Dwell brand.

On Nov 30, the company announced the completion of an acquisition of a portfolio of six student accommodation assets located in the United States. The acquisition of the six portfolio assets were made by Centurion US Student Housing Fund, in which the company's wholly-owned subsidiary, Centurion Overseas Investments Pte Ltd, holds an approximate 28.74 per cent stake.

BHG Retail Reit

On Dec 13, Beijing Hualian Mall (Singapore) Commercial Management Pte Ltd acquired one million units of BHG Retail Reit at S$0.74 per unit. This took the aggregate deemed interest of Beijing Hualian Group in BHG Retail Reit to 34.13 per cent.

BHG Retail Reit is managed by BHG Retail Trust Management Pte Ltd - an indirect wholly-owned subsidiary of the sponsor, Beijing Hualian Department Store Co Ltd. The sponsor is part of the BHG Group, which includes, inter alia, Beijing Hualian Group.

For its Q3FY17 (ended Sept 30) BHG Retail Reit's gross revenue rose 7.0 per cent yoy and net property income rose 10.5 per cent yoy. The growth in top line and net property income were attributed to underlying rental uplifts achieved for new and renewed leases, as well as in-built rental escalation for ongoing tenancies.

As at Sept 30, 2017, portfolio committed occupancy rate stood high at 99.0 per cent and BHG Retail Reit's gearing ratio remained healthy at 32.5 per cent. The distribution per unit of 1.41 cents for Q3FY17 was 9.3 per cent higher yoy.

BHG Retail Reit is the first retail Reit sponsored by an established PRC home-grown retail property operator. The Reit maintains a diversified portfolio of five retail properties strategically located in major cities in China, namely Beijing, Chengdu, Hefei, Xining and Dalian, with voluntary right of first refusal agreements for 15 properties that may potentially be offered to BHG Retail Reit as future pipeline assets.

The CEO of BHG Retail Trust Management Pte Ltd, Chan Iz-Lynn, noted with the Q3FY17 results that management will continue to pursue sustainable growth through both organic and acquisition channels.

Union Gas Holdings

On Dec 18 and 19, Union Gas Holdings' founder and non-executive chairman, Teo Kiang Ang acquired 943,500 shares at S$0.245 per share. This took Mr Teo's direct stake in the company to 70.47 per cent.

Union Gas Holdings is an established provider of fuel products in Singapore with over 40 years of operating track record in the business of retail LPG, CNG and diesel.

The company listed on Catalist in July 2017 with an initial offer price of S$0.25, some 43 years after Mr Teo founded the business as a sole proprietorship in 1974. The new shares were primarily issued for the acquisition of dealers for the retail LPG business, diversification into the supply and retail of piped natural gas to customers in the services and manufacturing industries, in addition to general working capital purposes.

Clearbridge Health

On Dec 18, Clearbridge Health listed on Catalist raising S$24.6 million and opening with a market capitalisation of S$134.7 million.

Clearbridge Health specialises in the delivery of precision medicine in Asia in addition to providing laboratory and healthcare services. Its precision medical technology businesses include Clearbridge BioPhotonics which develops the next generation microscope technology; and Clearbridge BioMedics, which developed the ClearCell® FX System - one of the world's first fully automated cell retrieval systems.

As at Dec 22, non-independent chairman Johnson Chen maintained a 15.69 per cent direct interest in the stock, while CEO Jeremy Yee maintained a 0.06 per cent stake.

The listing of Clearbridge Health took the number of IPOs on SGX to 20 in 2017, raising S$4.7 billion, more than double that of funds raised in 2016.

While on the topic of health, we wish you a Merry Christmas and the best of health for 2018!