Renaldo Santosa adds to Japfa stake after Q3 2021 results

FOR the four local trading sessions that spanned Oct 29 to Nov 4, the Straits Times Index (STI) gained 0.5 per cent, with the FTSE China A50 Index declining 0.6 per cent, the Hang Seng Index declining 0.9 per cent and the FTSE Bursa Malaysia KLCI declining 2.0 per cent.

Within the STI, UOB U11 , DBS D05 Group Holdings, ComfortDelGro C52 Corporation, Ascendas Reit A17U and Thai Beverage Y92 : Y92 0% received the highest net institutional inflows for the first three sessions of November.

For the month of October, UOB and DBS Group Holdings also led the net institutional inflows, while Thai Beverage saw the seventh highest net institutional inflows.

On the other hand, ComfortDelGro and Ascendas Reit recorded net institutional outflows in October while posting respective share price gains of 3.3 per cent and 3.0 per cent, respectively.

The first three sessions of November saw ComfortDelGro and Ascendas Reit add another 2.6 per cent and 1.0 per cent share price gains, respectively.

Singapore Exchange S68 , Yangzijiang BS6 Shipbuilding Holdings, OCBC O39 , Keppel Corporation BN4 and Singapore Airlines C6L : C6L 0% recorded the largest net institutional outflows over the first three sessions of November.

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Three of the five, Yangzijiang Shipbuilding Holdings, OCBC and Keppel Corporation received net institutional inflows in October.

Outside the STI, Suntec Reit T82U , NetLink NBN Trust CJLU , Ascott Residence Trust HMN , SPH Reit SK6U and Singapore Press Holdings T39 : T39 0% received the highest net institutional inflows for the first three sessions of November.

Of the stocks, Suntec Reit was the only stock that recorded net institutional outflows in October.

Meanwhile, Japfa UD2 , Manulife US Reit BTOU , Frencken Group E28 , Sinjia Land 5HH and Raffles Medical Group BSL : BSL 0% were the non-STI stocks that saw the most net institutional outflows for the first three sessions of November, with the latter two stocks booking net institutional inflows for October.

Overall, institutions were net sellers over the first three sessions of November, with approximately S$30 million of net outflow, following net inflows of close to S$140 million in October.

Share buybacks

There were 13 primary-listed stocks conducting share buybacks over the four trading sessions spanning Oct 29 to Nov 3, with a total consideration of S$11.8 million.

Wing Tai Holdings W05 , OCBC and Wilmar International F34 : F34 0% led the consideration tally.

Wing Tai repurchased 1,612,800 shares at an average price of S$1.94.

After the property and lifestyle company's new buyback mandate was approved on Oct 26, it bought back 0.47 per cent of its issued shares (excluding treasury shares) through to Nov 3.

In the preceding two buyback mandates, Wing Tai bought back 0.15 per cent of its shares and 1.01 per cent of its shares.

Secondary-listed Hongkong Land H78 : H78 0% also bought back shares for three of the four sessions, paying between US$5.60 and US$5.46 per share.

Secondary-listed Jardine Matheson Holdings J36 : J36 0% bought back shares over all four sessions, paying between US$60.00 and US$56.80 per share.

For the month of October, Hongkong Land bought back 12,310,950 shares, paying between US$4.79 per share and US$5.45 per share.

In October, Jardine Matheson Holdings bought back 687,789 shares, paying between US$51.79 per share and US$58.00 per share.

Hongkong Land was the STI's strongest performer in October, while Jardine Matheson Holdings was the fourth strongest STI stock for the month.

The total consideration of the buybacks of the two secondary-listed companies in October was above S$100 million.

Director and substantial shareholder transactions

The four trading sessions saw 76 changes in director interests and substantial shareholdings filed for 40 primary-listed stocks.

This included 8 company director acquisitions with 2 disposals filed, while substantial shareholders filed 11 acquisitions and 5 disposals.

Japfa

On Nov 2, Renaldo Santosa acquired 590,000 Japfa shares at 65.5 cents per share.

He was appointed an alternate director to Handojo Santosa on Apr 15. Handojo Santosa is the executive chairman of Japfa, and the father of Renaldo Santosa.

With a consideration of S$386,450, the Nov 2 acquisition increased the deemed interest of Renaldo Santosa in the leading industrialised agri-food company from 57.13 per cent to 57.16 per cent.

His preceding acquisition of 115,000 shares at 87.0 cents per share was on May 10.

On Oct 28, Japfa reported that its 9 months fiscal year 21 (ended Sep 30) revenue grew 22.2 per cent to US$3.38 billion on the back of higher sales volumes.

Japfa chief executive officer Tan Yong Nang noted that despite a weak Q3FY21 marked by the negative effects of Covid-19 in two out of three segments, Japfa delivered a good 9MFY21 performance on the back of a strong H1FY21.

Tan added that the diversification of Japfa's revenue and profit streams, coupled with the relentless focus of its local teams, continues to be a strength for the group.

He also noted that the company has continued its plan to grow its dairy segment, AustAsia, into the largest independent raw milk producer in China, by forging new strategic partnerships with growing Chinese food and beverage companies as shareholders of AustAsia.

Union Steel Holdings

On Nov 1, Union Steel Holdings BLA : BLA 0% co-founder and executive director Ang Yew Chye acquired 380,000 shares of the company for a consideration of S$266,000 at 70 cents per share.

This took his direct interest from 9.40 per cent to 10.36 per cent. This was Ang's first acquisition in the company since late April.

Ang is the co-founder of the group and was appointed executive director in August 2004.

He is responsible for the day-to-day operation and management of the companies and he has more than 30 years of experience in the scrap metal recycling business.

For its FY21 (ended Jun 30) Union Steel Holdings achieved a net profit of S$7.7 million, a turnaround from the net loss of S$7.8 million in FY20.

The multi-business investment holding company has three primary business drivers - metals, scaffolding and engineering.

The two largest shareholders of Union Steel Holdings are its chairman, Ang Yu Seng with a 34.85 per cent interest, and substantial shareholder Sam Goi Seng Hui with a 21.80 per cent interest (as at Sep 16). Goi's son, Goi Kok Ming, also serves as a non-executive director of Union Steel Holdings.

Ang Yu Seng noted last month that the metals division is the main revenue contributor of the group, accounting for nearly two-thirds of total group revenue.

He also noted that the outlook for metal prices is forecast to remain stable with some upward pressure in the near term, adding that the group is positive that this division will continue to be a significant contributor in the current and next financial year.

IReit Global

Between Oct 28 and Nov 1, IReit Global Group UD1U : UD1U 0% non-executive director Bruno de Pampelonne acquired 200,000 units of IReit Global at 65.0 cents per unit.

With a consideration of S$130,000, this increased his direct interest in IReit Global from 0.03 per cent to 0.05 per cent.

He has approximately 35 years of experience in various segments of the financial markets, from debt and real estate to equity, and from banking to asset management.

He is currently a senior partner of Tikehau Capital and chairman of Tikehau Investment Management in Paris, and chief executive officer of Tikehau Investment Management Asia in Singapore.

Tikehau Capital is a global alternative asset management group with 30.9 billion euros of assets under management as at Jun 30.

Tikehau Capital and City Developments jointly own IReit Global Group.

IReit Global's current portfolio comprises five freehold office properties in Germany, five freehold office properties in Spain and 27 freehold retail properties in France.

This includes the acquisition announced on Sep 24 which saw Sadena Real Estate, a wholly-owned subsidiary of IReit Global, enter into a public deed of sale with Inmobiliaria Colonial, SOCIMI, on Sep 23 to acquire an office building known as "Parc Cugat" located in Sant Cugat del Valles, Barcelona, Spain.

EnGro Corporation

On Oct 28, EnGro Corporation S44 : S44 0% chairman and chief executive officer Tan Cheng Gay acquired 37,000 shares of the company for a consideration of S$47,545.

At an average price of S$1.29 per share, this increased his total interest in the leading provider of building materials from 14.63 per cent to 14.66 per cent.

His preceding acquisition of 20,500 shares at S$1.40 per share was on Aug 17.

Tan is a stalwart of the company, having been with EnGro Corporation since its inception, and was appointed as director in 1973.

He has since served as the executive director and steers the strategic direction and vision of the group.

For its H1FY21 (ended Jun 30), EnGro Corporation's revenue recovered with a 37.7 per cent year-on-year growth to S$62.4 million, with its key operating segments achieving better results in H1FY21 compared to same period the previous year, in addition to outperforming pre-Covid levels in 2019.

The company also noted that most of the joint ventures in China recorded stronger performance due to pent up demand.

EnGro Corporation is a leading provider of building materials, with more than 40 years of operational experience shaping landscapes in various parts of Asia.

Forise International

On Nov 2, Forise International 8A1 : 8A1 0% executive director Leo Peng Weile acquired 304,400 shares of the company at 10.5 cents per share.

With a consideration of S$31,962 this increased his deemed interest in Forise International from 29.10 per cent to 29.81 per cent.

Peng has over 18 years of experience in investment banking, direct investment, asset management, corporate advisory, financial restructuring advisory, and strategic planning, and has strong knowledge relating to the capital markets in China, Hong Kong, Singapore and Australia.

The principal activities of the subsidiaries of Forise International consist of corporate advisory, management consulting services and investment holding.

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