Penta-Ocean Construction books 29% stake in Koh Bros Eco Engineering

FOR the five trading sessions that spanned June 4 to 10, the Straits Times Index (STI) ended 0.1 per cent lower, taking its total return for the 2021 year to June 10 to 13.0 per cent.

Within the STI, Singapore Airlines, Singapore Exchange, Mapletree Logistics Trust, OCBC and CapitaLand received the highest net institutional inflows from June 4 to 10.

Outside the STI, Singapore Press Holdings, Suntec Reit, Wing Tai Holdings, Ascott Residence Trust and Keppel Reit received the highest net institutional inflows over the five sessions.

Overall, institutions were net sellers over the five sessions, to the amount of S$150 million, led by Singapore Telecommunications which received S$117 million in net institutional outflow.

Share buybacks

There were 12 primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$27,786,507.

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OCBC led the consideration tally, buying 1,950,000 shares at an average price of S$12.44 per share. Wing Tai Holdings bought back 1,117,000 shares at an average price of S$1.77 per share.

Director and substantial shareholder transactions

The five trading sessions during the period saw 120 changes in director interests and substantial shareholdings filed for more than 30 primary-listed stocks.

This included eight company director acquisitions with two disposals, while substantial shareholders filed eight acquisitions and seven disposals.

Koh Brothers Eco Engineering

Penta-Ocean Construction completed its subscription for 810 million shares of Koh Brothers Eco Engineering on June 8.

The issue price of 4.7 cents per share was 31 per cent higher than the volume weighted average price of 3.6 cents per share for the Catalist-listed company on March 12, which was the preceding full market day prior to the signing of the subscription agreement.

Penta-Ocean Construction now maintains a 28.75 per cent direct interest in of Koh Brothers Eco Engineering.

The subscription reduced Koh Brothers Group's direct interest in Koh Brothers Eco Engineering from 76.94 per cent to 54.82 per cent.

This saw the deemed interest of Koh Brothers Eco Engineering non-executive and non-independent chairman Francis Koh Keng Siang similarly reduced. Mr Koh's total interest in Koh Brothers Eco Engineering is now 55.29 per cent.

Koh Brothers Eco Engineering has signalled that the subscription enables the group to expand its existing suite of capabilities to leverage on the growth in public sector construction activities in Singapore.

The company noted that it intends to further deliberate on the group's strategy in due course, which may include bidding for more capital-intensive projects and other potential growth opportunities.

Koh Brothers Eco Engineering provides engineering, procurement and construction services for infrastructure, water and wastewater treatment, building, bio-refinery and renewable energy projects.

Mr Koh also serves as the managing director and group CEO of Koh Brothers Group where he has held various positions in administration, finance and project management since 1987.

Mr Koh was the main driving force behind the expansion of Koh Brothers Group into real estate and leisure & hospitality, and credited with spearheading the business to establish its brand name in Singapore.

In 2020, the Singapore construction sector was one of the most adversely impacted sectors by necessary Covid-19 containment measures.

With the gradual resumption of construction activities, revenue for the sustainable engineering solutions group in H2FY20 (ended Dec 31) saw a marked improvement of 32 per cent compared to H1FY20.

Correspondingly, net profit attributable to shareholders in H2FY20 was S$1.9 million, a turnaround from the net loss of S$13.6 million reported in H1FY20.

Q & M Dental Group (Singapore)

On June 4, Quan Min Holdings transferred 9,746,535 shares of Q & M Dental Group (Singapore) to Quan Min Plus.

This reduced the total interest of Q & M Dental Group (Singapore) non-independent executive director and CEO Ng Chin Siau from 52.55 per cent to 51.31 per cent.

Back on Oct 23, Q & M Dental Group (Singapore) announced that nine of the group's promising next generation dentists had signed 10-year service agreements with the company and entered into an arrangement similar to that entered into between the founding dentists of the group through Quan Min Holdings, to hold their shares in the company.

The nine dentists had subsequently incorporated Quan Min Plus to act as their investment holding company.

More recently, on June 4, Q & M Dental Group (Singapore) announced that the Ministry of Health approval to Acumen Diagnostics granted to provide offsite Covid-19 polymerase chain reaction swab and serology services.

Acumen Diagnostics is a 51 per cent subsidiary of Q & M Dental Group (Singapore) and has approval to provide these services at the former Siglap Secondary School as well as any approved sites appointed by HPB in accordance with the tender from June 2, 2021 to June 1, 2023, subject to certain conditions.

Alset International

Between June 3 and 8, Alset International executive chairman and CEO Chan Heng Fai acquired 4,883,400 shares of the Catalist-listed company for a consideration of S$327,285 at 6.7 cents per share.

This increased his total interest in Alset International from 85.55 per cent to 85.72 per cent and followed his acquisition of 8,759,700 shares at 6.3 cents per share between May 27 and June 2.

ABR Holdings

On June 3, ABR Holdings managing director Ang Yee Lim acquired 200,000 shares of the company for a consideration of S$96,000 at an average price of 48.0 cents per share.

This took his interest in the restaurant operator from 51.40 per cent to 51.50 per cent and followed his acquisition of 607,000 shares at an average price of 48.8 cents per share between May 20 and 25.

Mr Ang has over 10 years of experience in the food and beverage business and more than 30 years of experience in property development and investment in Singapore, Malaysia, Indonesia and Thailand.

Second Chance Properties

Between June 4 and 9, Second Chance Properties founder and CEO Mohamed Salleh Marican acquired 183,200 shares of the company for a consideration of S$50,380.

At 27.5 cents per share, this increased his total interest in the properties and securities investor, apparel and gold retailer, from 69.01 per cent to 69.03 per cent.

This followed his acquisition of 1,000,100 shares between May 27 and June 3, again at 27.5 cents per share.

Old Chang Kee

On June 7, Goodview Properties acquired 19,000 shares of Old Chang Kee for a consideration of S$13,490.

At 71 cents per share, this increased the Far East Organization Centre Pte Ltd's deemed interest in Old Chang Kee from 11.98 per cent to the 12.00 per cent threshold.

Goodview Properties' substantial shareholding in Old Chang Kee has increased from 11.70 per cent as of the end of its FY20 (ended March 31).

On May 27, Old Chang Kee announced that its FY21 revenue decreased by approximately S$12.7 million or 14.4 per cent for the year, mainly due to a fall in revenue from retail outlets, offset by higher revenue from delivery, catering and events.

The group's gross margin improved by 1.9 per cent to 65.6 per cent in FY21, mainly due to economies of scale from the large-scale catering of packed meals to foreign workers dormitories and improved food cost controls and higher production staff efficiency.

Other income also increased by approximately S$6.1 million due to government grants such as the Jobs Support Scheme, Wage Credit Scheme, Special Employment Grant Scheme and property tax rebates.

The group pointed out that its retail revenues remain below pre- Covid-19 levels due to various social distancing measures put in place, resulting in operational losses for some of its retail outlets.

The group added that it is continuing to review if there is a need to provide for further impairment to its assets, depending on how Covid-19 pans out in the months ahead.

With overseas operations in Iskandar Malaysia, London and Perth similarly impacted by Covid-19, the group has sought new revenue streams including frozen meal kit home deliveries and increased the range of snack deliveries and bento meals for its stay-at-home customers.

Old Chang Kee executive chairman Han Keen Juan and his spouse Ng Choi Hong are the respective controlling and deemed controlling shareholders of the popular food and beverage chain that specialises in curry puffs and other snacks.

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