Nanofilm leads significant buyback flows

FOR the five trading sessions that spanned Aug 13 to 19, the Straits Times Index (STI) declined 3.0 per cent, with the FTSE China A50 Index, Hang Seng Index and FTSE Bursa Malaysia KLCI averaging a 1.8 per cent decline.

Within the STI, Singapore Telecommunications Z74 , UOB U11 , Yangzijiang Shipbuilding Holdings BS6 and CapitaLand C31 received the highest net institutional inflows from Aug 13 to 19.

The four stocks also received the highest net institutional inflows from Aug 6 to 12.

Ascendas Reit A17U received the fifth highest net institutional inflows from Aug 13 to 19, and outside the STI, ESR-Reit J91U , Olam International O32 , Tianjin Zhong Xin Pharmaceutical T14 , ARA Logos Logistics Trust K2LU and Yanlord Land Z25 received the highest net institutional inflows.

Overall, institutions were net sellers over the five sessions, totalling S$115,805.

Share buybacks

There were 19 primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$45.6 million.

Nanofilm Technologies International MZH led the significant consideration tally, buying 4,918,400 shares at an average price of S$4.08.

On Aug 18, it filed a general announcement addressing market feedback and its management bench strength after its H1FY21 (ended June 30) results were released on Aug 13.

From its listing on Oct 29, 2020, the share price of Nanofilm Technologies has gained 52.9 per cent through to Aug 19, while ranking as a top 40 stock by trading turnover in 2021.

OCBC also bought back 1.2 million shares at an average price of S$11.79 per share.

Director and substantial shareholder transactions

The five trading sessions saw 100 changes in director interests and substantial shareholdings filed for 50 primary-listed stocks.

This included 33 company director acquisitions with three disposals filed, while substantial shareholders filed four acquisitions and three disposals.

GSH Corporation

Between Aug 13 and 18, GSH Corporation BDX executive chairman Sam Goi Seng Hui acquired 5,205,000 shares of the company for a consideration of S$872,139.

At 16.8 cents per share, this increased his total interest in the property developer, hotel and resort operator from 59.82 per cent to 60.08 per cent.

On Aug 11, GSH Corporation reported its group revenue for H1FY21 (ended June 30) decreased by 40 per cent to S$39.7 million, generating an operating loss of S$4.6 million and a net loss after tax of S$12.4 million.

In H1FY21, the group's frozen food trading business continued to grow and registered a 91 per cent increase in revenue to S$17.6 million.

In its outlook, GSH Corporation noted that the expected rejuvenation of the hotel industry depends on the type of measures taken by the Malaysia government, and when such measures are subsequently relaxed to allow F&B dine-in and staycation packages.

JB Foods

On Aug 13, JB Foods BEW executive director and CEO Tey How Keong acquired 500,000 shares of the company for a consideration of S$290,000 at 58.0 cents per share.

This took his total interest in JB Foods from 46.47 per cent to 46.64 per cent.

Mr Tey has over 25 years of experience in the cocoa business and is responsible for the overall strategic, management and business development of the group.

His preceding acquisition was on Sept 11, with 200,000 shares acquired at 54.0 cents per share. On Aug 11, JB Foods reported its H1FY21 (ended June 30) revenue increased 0.6 per cent year on year, with profit after tax decreasing 59.8 per cent to US$4.2 million.

Mr Tey noted that the lower profitability for the first half year was mainly due to a significant surge in ocean freight rates caused by global supply chain disruptions, as the company constantly reviews its strategy to overcome this challenge in impacted markets.

GHY Culture & Media

Between Aug 13 and 18, GHY Culture & Media XJB (GHY) executive chairman and group CEO Guo Jingyu acquired 428,500 shares of the company for a consideration of S$267,209.

At an average price of 62.4 cents per share, this took his total interest in GHY from 59.82 per cent to 60.08 per cent.

Mr Guo has gradually increased his total interest in GHY from 59.60 per cent prior to Dec 28, 2020.

Aztech Global

On Aug 13, Aztech Global 8AZ executive director and COO Jeremy Mun Weng Hung acquired 150,000 shares of the company for a consideration of S$177,000.

At S$1.18 per share, this took his total interest in the provider of IoT Devices, Data-communication products and LED lighting products to 0.02 per cent.

Mr Mun is responsible for the day-to-day operation and management of the group's businesses, in particular the manufacturing facilities in the PRC and Malaysia.

He has been with the group since 2002 and was previously involved in the product development and sales of LED lighting business before taking on the current role.

For its H1FY21 (ended June 30), Aztech Global reported that net profit after taxation more than doubled to S$29.4 million from S$13.0 million, with its net profit margin improving to 11.8 per cent.

Serial System

On Aug 16, Serial System S69 executive chairman and group CEO Derek Goh Bak Heng acquired 450,000 shares of the electronic components distributor for a consideration of S$63,770. At an average price of 14.2 cents per share, the acquisitions increased his total interest in Serial System from 40.33 per cent to 40.38 per cent.

His preceding acquisitions were on June 28 with 300,000 shares bought at 12.9 cents per share, June 24 with 100,000 shares acquired at 13.7 cents per share and June 22 with 570,000 shares acquired at 13.6 cents per share.

Mr Goh founded Serial System as a sole proprietorship in 1988, incorporated Serial System in 1992 and was the founding chairman and CEO when Serial System listed in 1997.

He maintains overall management responsibilities for the group, including leading the board in charting its future direction.

On Aug 13, Serial System posted a turnaround net profit of US$5.8 million for its H1FY21 (ended June 30) following a loss of US$4.5 million in H1FY20. The company attributed the result to higher revenue and gross profit margin as business segments recovered from the earlier impact of the pandemic.

Since its H2FY20, Serial System has embarked on a strategic shift to widen its base of suppliers and customers, increase its consumer electronics distribution activity in South-east Asia, and restructure costs and streamline internal efficiency.

Mr Goh noted with the result that Serial System has remained focused on recovery strategies initiated a year ago and in view of these initiatives, expects to continue to deliver profit in H2FY21.

Broadway Industrial Group

Between Aug 13 and 17, Broadway Industrial Group B69 independent director Teo Ho Pin acquired 265,100 shares for a consideration of S$40,405. At 15.2 cents per share, this took his direct interest in the precision-machined component manufacturer to 0.06 per cent.

Appointed to the board on May 17, he is also an independent director of Tiong Seng Holdings BFI , ISOTeam 5WF and King Wan Corporation 554 , and the senior adviser to Surbana Jurong (managed services division). He is also an adjunct professor in the Department of Building at the National University of Singapore and a visiting professor at the Singapore University of Technology and Design.

On Aug 13, Broadway Industrial Group lead independent director Basil Chan acquired 150,000 shares for a consideration of S$23,100. At 15.4 cents per share, this took his direct interest in the company to 0.03 per cent.

Mr Chan has more than 35 years of audit, financial and general management experience having held senior finance positions in both private and public companies. He is the founder and managing director of MBE Corporate Advisory and currently an independent director of AEM Holdings AWX , Grand Banks Yachts G50 , Memories Group 1H4 and Nera Telecommunications N01 .

On Aug 11, the group reported H1FY21 (ended June 30) group revenue increased 10.6 per cent to S$211.4 million from S$191.1 million in H1FY20. Attributed to an increase in shipment volume and higher average selling price of its hard disk drive products, the group reported a 7.4 per cent year-on-year increase in net profit from operations to S$7.3 million. This was on the back of a shift in its product mix from personal and mobile computing segments to the high performance enterprise segment.

Key hard disk drive customers also continued to report strong market demand for mass capacity drives, driven by their original equipment manufacturer customers and cloud companies.

Enviro-Hub Holdings

Between Aug 18 and 19, Enviro-Hub Holdings L23 executive chairman Raymond Ng acquired 605,000 shares of the environmental management solutions group for a consideration of S$45,980 at 7.6 cents per share. This took his total stake in the stock from 34.65 per cent to 34.70 per cent.

Mr Ng is responsible for the group's overall management, business development, investment decisions as well as strategic direction and planning.

Tye Soon

On Aug 16, Tye Soon BFU managing director David Chong Tek Yew acquired 62,800 shares of the company for a consideration of S$24,417. At an average price of 38.9 cents per share, this increased his total interest in the independent automotive parts distributor from 2.65 per cent to 2.72 per cent.

Joining as group general manager/executive director in 1998, Mr Chong was appointed deputy managing director in 2002, before being appointed managing director in February 2014.

On Aug 12, Tye Soon reported a net profit of S$2.1 million for H1FY21 (ended June 30), up from S$0.1 million in H1FY20. The company noted that the distribution of automotive parts in the aftermarket has remained relatively resilient globally as moving vehicles on the road require replacement parts due to the wear and tear of such parts.

The company added that he signing of a cooperation agreement with Bapcor Group in April this year is expected to lead to the development of plans and initiatives intended to have a positive yield over the extended horizon.

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