First sponsor chair raises stake; buybacks resume

FOR the four local trading sessions that spanned Aug 6 to 12, the Straits Times Index (STI) gained 0.2 per cent, while the FTSE China A50 Index, Hang Seng Index and FTSE Bursa Malaysia KLCI averaged a 1.4 per cent gain.

Within the STI, DBS D05 , CapitaLand C31 , Yangzijiang Shipbuilding Holdings BS6 , Singapore Telecommunications Z74 and UOB U11 received the highest net institutional inflows from Aug 6 to 12.

Outside the STI, Golden Agri-Resources E5H , ESR-Reit J91U , Singapore Press Holdings T39 , StarHub CC3 and Olam International O32 received the highest net institutional inflows over the four sessions.

Overall, institutions were net buyers over the four sessions, to the amount of S$77 million, with OCBC O39 , Singapore Exchange S68 and Mapletree Commercial Trust N2IU reporting the highest net institutional outflows.

Share buybacks

There were seven primary-listed stocks conducting share buybacks over the four sessions with a total consideration of S$4,060,083. Singapore Technologies Engineering S63 , The Hour Glass AGS and OUE LJ3 led the consideration tally. ST Engineering bought back 500,000 shares, at an average price of S$4.08 per share, and The Hour Glass bought back 600,000 shares at S$1.47 cents per share.

Director and substantial shareholder transactions

The four trading sessions saw 60 changes in director interests and substantial shareholdings filed for 28 primary-listed stocks.

This included five company director acquisitions with two disposals filed, while substantial shareholders filed a total of eight acquisitions and three disposals.

First Sponsor Group

Between Aug 4 and 11, First Sponsor Group ADN (FSGL) non-executive chairman Calvin Ho Han Leong increased his total interest in the company by 1,276,400 shares.

With a consideration of S$1.83 million, and average price of S$1.43 per share, the acquisitions increased both his direct and indirect interests in FSGL, with his total interest increasing from 46.63 per cent to 46.77 per cent.

These acquisitions followed Mr Ho's acquisition of 4,039,518 shares at S$1.33 per share between May 18 and 19.

Appointed as the non-executive chairman of the company in April 2015, Mr Ho had served as the non-executive vice-chairman of the company since October 2007.

He has also been instrumental in assisting the group's senior management in the conceptualisation and setting of the strategic direction and corporate values of the group.

He has accumulated extensive experience during his tenure as chief executive officer of Singapore-incorporated Tai Tak Estates (Tai Tak), having been involved in its businesses, including in plantations, listed and private equities, as well as property holding and development.

Between Aug 4 and 6, the FSGL alternate director to the non-executive chairman, Ho Han Khoon, acquired 195,000 shares of the listed company for a consideration of S$273,329. At S$1.40 per share, this increased his total interest in FSGL from 31.70 to 31.72 per cent.

Following on from FSGL issuing 5,434,680 new shares on Aug 12 pursuant to the exercise of warrants, Mr Calvin Ho and Mr Ho Han Khoon saw their total interests in FSGL reduced from 46.77 per cent to 46.63 per cent and 31.72 per cent to 31.61 per cent respectively.

Appointed as an alternate director to Mr Calvin Ho in May 2014, Mr Ho Han Khoon also holds the position of executive vice-president of Tai Tak, where he has the responsibility of overseeing the group's overall business and financial strategy, investments and operations.

Following FSGL reporting half yearly results in 2020, Mr Ho Han Khoon made a similar acquisition of 195,000 shares, between July 23 and 28, for a consideration S$244,798 at S$1.26 per share.

On July 30, FSGL reported H1FY21 (ended June 30), net profit of S$69.0 million, which was up 18.7 per cent from S$58.1 million in H1FY20.

This in turn, followed on from 49.4 per cent year-on-year net profit growth in H1FY20.

Subsequently, in July, the group entered into a joint venture to subscribe for a 36 per cent equity stake in a project company that owns and will redevelop two adjacent plots of mixed-use development land in Humen, Dongguan.

The development land has a saleable gross floor area (GFA) of approximately 110,000 sq m, which comprises approximately 82,000 sq m of residential GFA and 28,000 sq m of commercial GFA.

The principal business activities of the group are property development, property holding and property financing.

This marked the group's fourth property development acquisition in the Greater Bay Area for the year.

Property financing was the key contributor to the group's revenue and profitability in FY20, delivering S$97.9 million in gross profit, accounting for 57 per cent of its FY20 total gross profit.

GHY Culture & Media

On Aug 12, GHY Culture & Media XJB (GHY) executive chairman and group CEO Guo Jingyu acquired 1,825,200 shares of the company for a consideration of S$1,154,567.

At an average price of 63.3 cents per share, this took his total interest in the company from 59.78 per cent to 59.95 per cent.

It followed his acquisitions of 143,800 shares at 72.7 cents per share on March 19 and 655,800 shares at 74.8 cents per share on March 1.

Mr Guo founded the entertainment business, which focuses on the production and promotion of dramas, films and concerts.

On Aug 11, GHY reported that H1FY21 (ended June 30) revenue increased 17.9 per cent year on year to S$43.8 million.

This was mainly attributed to the TV programme and film production business, which saw revenue almost double from H1FY20.

Despite the ongoing impact of Covid-19, the group was able to complete the filming of a drama and has released two films, with several productions (including a drama and an online short-form series) in progress.

Barring unforeseen circumstances, the group expects to commence production of at least another five dramas in the second half of 2021.

Mr Guo noted with the results that being close to the ground, the company would stay vigilant to changes and has the agility to ramp-up productions across its two growth engines of TV programme and film production and concert production when the Covid-19 situation improves.

Uni-Asia Group

On Aug 4, Uni-Asia Group CHJ substantial shareholder Ham Yong Kwan increased his direct interest in the company from 8.77 per cent to 9.14 per cent. He acquired 289,800 shares for a consideration of S$303,319 at S$1.05 per share.

He has gradually increased his interest in Uni-Asia Group from 2.20 per cent in March 2020, with his direct interest reported to cross over the 5.00 per cent substantial shareholding threshold in a filing on Jan 27.

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