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INSIDE INSIGHTS

MD Ong Pang Aik increases Lian Beng stake following FY19 results

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Lian Beng Group's Ong Pang Aik was instrumental in growing the business from its early days as a subcontractor into an A1-graded building construction enterprise.

FOR the five trading sessions from Aug 2 to 8, the Straits Times Index (STI) declined 3.7 per cent, with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging a 3.3 per cent decline, weighed by the Hang Seng Index's decline of 4.6 per cent.

By comparison, the iEdge S-Reit Index generated a more defensive 0.9 per cent decline over the five sessions, with dividend distributions paring the decline to 0.4 per cent.

The week of broad declines has brought the STI's 2019 total return through to Aug 8 to 6.1 per cent.

Share buybacks

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There were five primary-listed stocks conducting share buybacks over the five sessions ended Aug 8, with a total consideration of S$9.5 million, less than the preceding five sessions' S$11.2 million (based on filings by 7.30 pm on Aug 8).

Boustead Singapore, Stamford Land Corporation, Keppel Reit and Singapore Shipping Corporation led the buyback tally by consideration.

The number of companies buying back shares, in addition to the number of directors filing acquisitions or disposals was considerably lower than average due to the earnings season in full effect.

Indofood Agri Resources

On Aug 6, PT Indofood Sukses Makmur Tbk (PT ISM) acquired 1,845,200 shares of Indofood Agri Resources for a consideration of S$599,690, at a price of S$0.325 per share.

PT ISM is a holding company of Indofood Singapore Holdings Pte Ltd (ISHPL) with an interest of approximately 83.84 per cent of the total number of issued shares in ISHPL.

The acquisition increased the total interest of PT ISM in Indofood Agri Resources from 79.92 per cent to 80.05 per cent.

Prior to this, PT ISM acquired a total of 12,753,000 shares of Indofood Agri Resources during the period of July 8 to 16, and Aug 1 to 5.

This followed a voluntary conditional cash offer by PT ISM to take Indofood Agri Resources private lapsing on June 25.

Lian Beng Group

Between Aug 1 and 7, Ong Sek Chong & Sons Pte Ltd acquired 1,089,500 shares of Lian Beng Group. The consideration for the acquisitions was S$544,750 at an average price of S$0.50 per share.

This took the total interest of Ong Sek Chong & Sons Pte Ltd in the home-grown construction group from 29.56 per cent to 29.78 per cent.

Lian Beng Group chairman and managing director, Ong Pang Aik, and Ms Ong Lay Hua maintain deemed interests in Ong Sek Chong & Sons Pte Ltd.

As of Aug 6, Mr Ong maintained a 35.45 per cent total interest in Lian Beng Group, with Ms Ong maintaining a total interest of 32.99 per cent.

Mr Ong joined the group in 1978 and was instrumental in growing the business from its early days as a subcontractor into an A1-graded building construction enterprise registered with BCA today.

The group is principally involved in the construction of residential, industrial and commercial projects, and civil engineering projects as a main contractor.

On July 30, the group released its FY19 results (ended May 31) noting that it was cautiously optimistic about the outlook for the construction sector in the months ahead.

In July 2019, it secured a S$235 million construction contract to construct a fresh food distribution centre for NTUC FairPrice Co-operative Ltd.

This, along with another S$117-million contract secured in March 2019, has boosted its order book to S$1.4 billion and is expected to provide the group with a steady flow of activities through FY22.

Shinvest Holdings

Between Aug 1 and 6, Shinvest Holding managing director Teo Teck Leong acquired 164,300 shares of the listed company for a consideration of S$275,161 at an average price of S$1.67 per share.

This took Mr Teo's total stake in the listed company from 10.452 per cent to 11.001 per cent.

Between July 17 and 25, he increased his total interests in the specialist manufacturer, acquiring total 211,000 shares at an average price of S$1.51 per share.

Mr Teo is the CEO of the company's wholly-owned subsidiary, Sin Hong, and has been a director of GD Tech since March 2011.

He also sits on the board of all of Sin Hong's subsidiaries and one of the subsidiaries of GD Tech, and oversees the businesses of Sin Hong and its subsidiaries and GD Tech and its subsidiaries.

Mr Teo has gradually increased his total interest in Shinvest Holding from 8.283 per cent on Jan 26, 2017.

On Aug 5, Shinvest Holding independent director Chau Sik Ting acquired 3,200 shares of Shinvest Holding for a consideration of S$5,600 at an average price of S$1.75 per share.

This took Dr Chau's direct interest in the listed company from 0.302 per cent to 0.313 per cent.

Dr Chau serves as the medical adviser to SembCorp Marine and is an accredited specialist in occupational medicine with Singapore's Ministry of Health.

He is a medical practitioner by profession and has been an independent non-executive director of China Dairy Group Ltd, since 2004.

AEI Corporation

On July 26, AEI Corporation substantial shareholder Ho Kee acquired 83,800 shares of the listed company for a consideration of S$53,619 at an average price of S$0.64 per share.

The acquisition brought Mr Ho Kee's direct interest in AEI Corporation from 4.89 per cent to 5.04 per cent.

Back on July 4, AEI Corporation's non-executive chairman Sun Quan also increased his deemed interest in the listed company from 51.05 per cent to 51.09 per cent.

Hwa Hong Corporation

Between Aug 1 and 6, Hwa Hong Corporation (Hwa Hong) substantial shareholder David Ong Eng Hui increased his direct stake in Hwa Hong from 5.738 per cent to 5.763 per cent.

Dr Ong acquired 159,100 shares of the property rental investor and developer for a consideration of S$49,021 at S$0.308 per share.

This also increased the deemed and hence total Hwa Hong interest of Dr Ong's father, Steven Ong Kay Eng, to 15.416 per cent.

Dr Ong's preceding acquisitions of Hwa Hong shares was between July 25 and 29 at an average price of S$0.303 per share.

On Aug 7, Hwa Hong substantial shareholder Ong Eng Yaw acquired 23,000 shares of the listed company for a consideration of S$6,900, at S$0.30 per share, taking the substantial shareholder's total interest in Hwa Hong to 13.001 per cent.

Jadason Enterprises

On Aug 7, Jadason Enterprises substantial shareholder Liaw Hin Hao acquired 320,000 shares of the listed company for a consideration of S$11,200 or S$0.035 per share.

The substantial shareholder's direct stake in the printed circuit board supplier has gradually increased to 8.2056 per cent, from 6.0834 per cent as at Dec 29, 2017.

Asiatic Group (Holdings)

On Aug 6, Asiatic Group (Holdings) executive director Tan Boon Siang acquired 1.36 million shares of the Catalist-listed company for a consideration of S$5,440, at a price of S$0.004 per share.

This marginally increased his direct interest in the energy and fire protection business from 4.42 per cent to 4.51 per cent.

Mr Tan joined the group in 1993 and is responsible for the management and supervision of the land-based fire-fighting and protection business.

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