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INSIDE INSIGHTS

Institutions build deemed interests in tech sector leaders

FOR the five trading sessions spanning Oct 25 to 31, the Straits Times Index (STI) gained 1.9 per cent with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging a 0.6 per cent gain.

This has brought the STI's 2019 total return through to Oct 31, to 9.1 per cent.

Share buybacks

There were a dozen primary-listed stocks conducting share buybacks over the last nine sessions of October with a total consideration of S$4,947,979.

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Keppel Reit, Stamford Land Corporation and Global Investments led the consideration tally.

As at Oct 31, Keppel Reit Management had bought back a total of 27,737,600 units of Keppel Reit, representing 0.8148 per cent of its issued units as of the April 23 start date for the current mandate.

The previous year's mandate had seen Keppel Reit Management buying back 1.004 per cent of the units of Keppel Reit.

Director and substantial shareholder transactions

The five sessions spanning Oct 25 to 31 saw 100 changes in director interests and substantial shareholdings filed for 40 primary-listed stocks.

There were 10 company director acquisitions and two disposals filed, with substantial shareholders filing 12 acquisitions and 14 disposals.

GuocoLand

On Oct 29, GuocoLand Assets Pte Ltd acquired 17,141,975 shares of GuocoLand for a consideration of S$35,141,049.

The married deal, transacted at S$2.05 per share, increased the deemed interest of Guoco Group Ltd in GuocoLand from 65.24 per cent to 66.69 per cent.

GuocoLand is part of Guoco Group Ltd, owned by the Hong Leong Group.

The acquisition took GuocoLand's non-independent non-executive director Quek Leng Chan's total interest in GuocoLand from 70.37 per cent to 71.81 per cent.

He also acquired another 1,333,333 shares in GuocoLand at S$2.05 on Oct 30, increasing his total interest in the listed company to 71.93 per cent.

Mr Quek is also the chairman & CEO of Hong Leong Company (Malaysia) Berhad.

On Oct 24, GuocoLand reported that its revenue and gross profit for its Q1FY19 (ended Sept 30) increased by 62 per cent to S$272.5 million and 77 per cent to S$88.9 million respectively, as compared to Q1FY18.

The improvement in performance was mainly due to higher progressive recognition of sales from Martin Modern at River Valley.

Venture Corporation

Schroders plc has deemed interests in Venture Corporation, on behalf of clients in their role as global investment managers.

Recently this deemed interest has been consolidating around the 7.0 per cent level.

Note that substantial shareholder acquisitions or disposals are filed if interests in voting shares of listed corporations (or voting units in a listed business trust or real estate investment trust) cross a percentage level.

Over the past two years, Schroders plc has been gradually building its deemed interest in Venture Corporation from 5.0 per cent on Oct 30, 2018, to 6.0 per cent on May 17, 2019, then to 7.0 per cent on Aug 5, 2019.

This means that Schroder plc has increased its deemed interest in Venture Corporation by approximately 5.8 million shares over a 12-month period, with the most recently filed acquisition of 95,000 shares on Oct 23 for a consideration value of S$1,460,625.

Schroders plc is a British multinational asset management company founded in 1804 and as at June 30, was responsible for close to 500 billion euros of assets for its clients.

Venture Corporation is expected to report its Q3FY19 results (ended Sept 30) after the market close on Nov 8. For its Q2FY19 Venture Corporation reported net profit of S$90.8 million on revenue of S$903.5 million, with its H1FY19 revenue and net profit holding steady year on year.

AEM Holdings

On Oct 25, UBS Group AG increased its deemed interest in AEM Holdings from 4.9 per cent to 5.4 per cent.

The acquisition of 1,343,800 shares that took UBS Group AG's deemed interest back above the substantial shareholder threshold were acquired for a consideration of S$1,980,824 at an average price of S$1.474 per share.

Previously, UBS Group AG had ceased being a substantial shareholder of AEM Holdings on March 26.

On Oct 29, another substantial shareholder filing also revealed that in the preceding week, with the aggregation of its global position, Morgan Stanley's deemed interest in AEM Holdings had crossed above the 5.0 per cent substantial shareholder threshold again.

Earlier this year, Morgan Stanley's deemed AEM interest was reported to have crossed into substantial shareholder territory on April 25, before it had ceased to be a substantial shareholder on May 6.

Q & M Dental

Between Oct 24 and 25, Quan Min Holdings Pte Ltd acquired 1,735,100 shares of Q & M Dental Group (Singapore) (Q & M) for a consideration of S$916,211 at an average price of S$0.528 per share.

Quan Min Holdings Pte Ltd is an investment holding company incorporated in Singapore and Q & M's ultimate parent company.

Q & M founder and group chief executive officer, Ng Chin Siau, maintains a 43.91 per cent direct shareholding in Quan Min Holdings Pte Ltd (as at Dec 31).

The Oct 24 acquisition increased Dr Ng's total interest in Q & M from 56.79 per cent 57.01 per cent.

His total interest in Q & M has gradually increased from 53.59 per cent at the end of 2018, and 49.88 per cent at the beginning of 2018.

Cache Logistics Trust

On Oct 30, ARA Trust Management (Cache) Ltd chairman and non-executive director, Lim How Teck, acquired 100,000 units of Cache Logistics Trust at $0.725 per unit.

The total consideration of the acquisition amounted to S$72,500 and took Mr Lim's stake in Cache Logistics Trust from 0.1293 per cent to 0.1385 per cent.

His preceding acquisition was on Aug 26 and involved 200,000 shares at S$0.72 per unit.

Mr Lim is also the chairman of Heliconia Capital Management Pte Ltd, Redwood International Pte Ltd and Catalist-listed NauticAWT.

KTMG

On Oct 29, KTMG non-executive and lead independent director Goh Yeow Tin acquired 100,000 shares of the Catalist-listed company for a consideration of S$12,500.

This took Mr Goh's direct interest in KTMG from 0.002 per cent to 0.061 per cent.

KTMG was formerly known as Lereno Bio-Chem and completed its reverse takeover exercise on Feb 18.

On May 13, the Malaysia-based apparel contract manufacturer for a range of clothing held its official Catalist listing ceremony at the SGX.

UOB-Kay Hian Holdings

Between Oct 24 and 30, UOB-Kay Hian Holdings (UOBKH) chairman and managing director, Wee Ee Chao increased his total stake in UOBKH, which is now at 29.42 per cent.

Mr Wee acquired 5,600 shares for a consideration of S$6,720 at S$1.20 per share.

The UOBKH chairman has gradually increased his total stake in UOBKH from 26.51 per cent at the end of 2017.

China Jinjiang Environment Holding Company

On Oct 30, two China Jinjiang Environment Holding Company (CJE) directors filed increased interests in the listed company.

Executive director and general manager Zhang Chao increased his total interest in CJE by 1,050,000 shares pursuant to the vesting of awards under the Jinjiang Environment performance share plan.

The consideration was S$189,000 at S$0.18 per share and increased Mr Zhang's total interest in CJE from 0.04 per cent to 0.11 per cent.

Mr Zhang is mainly responsible for the execution, supervision and management of CJE's daily business.

Meanwhile, the company's executive director and deputy general manager Wang Ruihong increased his total interest in CJE by one million ordinary shares also pursuant to the vesting of awards under the performance share plan.

The consideration of the transaction was S$180,000, also at S$0.18 per share.

This increased Mr Wang's total interest in CJE from 0.08 per cent to 0.14 per cent.

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