A-Sonic and Singapore Shipping directors continue with their acquisitions

FOR the three trading sessions that spanned Jan 20 to 26, the Straits Times Index (STI) gained 3.1 per cent. Institutions were net sellers of Singapore stocks with S$157 million of net outflow.

Large caps OCBC : O39 0%, DBS : D05 0%, UOB : U11 0%, Singapore Telecommunications : Z74 0% and Wilmar International : F34 0% led the net institutional outflow for the three sessions.

Meanwhile, Mapletree Logistics Trust, : M44U 0% Singapore Technologies Engineering : S63 0%, CapitaLand Integrated Commercial Trus : C38U 0%t, SATS : S58 0% and UMS Holdings : 558 0% led the net institutional inflow for the three sessions.

This followed Mapletree Logistics Trust reporting after the close of Jan 19 that its gross revenue for Q3 FY22/23 (ended Dec 31) rose by 8 per cent year on year (yoy) to S$180.2 million, mainly due to accretive acquisitions completed in Q1FY22/23 and FY21/22.

In tandem with higher gross revenue, its net property income increased by 7.3 per cent yoy to S$157.2 million.

Share buybacks

There were eight primary-listed companies conducting share buybacks over the three trading sessions through to Jan 26, with a total consideration of S$1.9 million.

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OCBC again led the consideration tally, buying back 100,000 shares at S$12.64 per share.

The bank has bought back 0.4 per cent of its issued shares (excluding treasury shares) on the current mandate.

SIA Engineering : S59 0% also bought back 71,500 shares at an average price of S$2.47 per share while Thakral Corporation : AWI 0% bought back 282,400 shares at an average price of S$0.62 per share.

Director and substantial shareholder transactions

The three trading sessions saw close to 30 changes to director interests and substantial shareholdings filed for 19 primary-listed stocks. This included four company director acquisitions with no disposals filed, while substantial shareholders filed one acquisition and three disposals.

The preceding five sessions spanning Jan 13 to 19, had seen relatively more filings as discussed below.

A-Sonic Aerospace

Between Jan 12 and 26, A-Sonic Aerospace : BTJ 0% CEO Janet LC Tan acquired 63,000 shares for a consideration of S$45,941 at an average price of S$0.73 per share.

This took her direct interest in the company from 61.07 per cent to 61.14 per cent. Tan has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.

With more than 20 years of extensive experience in the aviation industry, she is also the promoter founder of the company.

Singapore Shipping Corporation

Between Jan 12 and 25, Singapore Shipping Corporation : S19 0% executive chairman Ow Chio Kiat acquired 75,800 shares at an average price of S$0.25 per share, and consideration of S$18,746.

He maintains a 42.65 per cent total interest in the company.

With a career spanning 60 years, Ow also serves as the executive chairman of Stamford Land Corporation. He has gradually increased his total interest from 36.90 per cent in June 2014.

Challenger Technologies

On Jan 17, Digileap Capital acquired 9,182,500 shares of Challenger Technologies : 573 0% at S$0.50 per share.

With a consideration of S$4,591,250, this increased the deemed interest of non-executive non-independent director Keith Tan Keng Soon from 15.15 per cent to 17.44 per cent.

His preceding acquisition was on Sep 28, 2022, with 3,100 shares acquired at S$0.53 per share. Tan was appointed a non-executive non-independent director of the company on Nov 29, 2021.

He is the chairman of the Dymon Asia Private Equity Investment Committee and a founding partner of Dymon Asia Capital.

Prior to Dymon, he was a director at Abax Global Capital, a special situations hedge fund based in Hong Kong, where he originated, structured, and executed investment transactions across Asia.

AnnAik

On Jan 17, Low Kheng, the spouse of AnnAik : A52 0% executive chairman cum CEO, Ow Chin Seng, purchased 1,435,000 shares of the company for a consideration of S$100,450.

At S$0.07 per share, the married deal increased Ow’s total interest in the manufacturer and distributor of stainless-steel products from 38.79 per cent to 39.78 per cent.

Ow is primarily responsible for the business and strategic development of the group.

With over 40 years of experience in the hardware and steel industry, he has been instrumental in the strategic direction and development of the group.

AnnAik executive director cum chief operating officer Ng Kim Keang also acquired 1,462,500 shares at S$0.07 per share on Jan 17.

With a consideration of S$102,375 this increased his direct interest in the company from 2.87 per cent to 3.38 per cent.

Ng joined the company in January 2003 as financial controller and was promoted to executive director in January 2005 and chief operating officer in March 2015.

He is currently responsible for managing the overall operations and the finance and accounting matters of the group.

These were the first director acquisitions filed for the company since it reported its H1FY22 (ended Jun 30) financials on Aug 10, when AnnAik reported attributable profit of S$2.86 million, compared to S$1.23 million in H1FY21.

This was attributed to the higher turnover and gross profit achieved in both the distribution and manufacturing of steel flanges divisions fuelled by a hike in steel prices and strong demand.

In addition, the contribution of profit from its environmental division also contributed positively to the overall performance.

This followed on from the group achieving an attributable profit in FY21 of S$3.09 million, compared to S$177,000 in FY20.

Plato Capital

Between Jan 12 and 17, Plato Capital : YYN 0% chairman, non-Independent and non-executive director Lim Kian Onn acquired 123,200 shares at an average price of S$1.87 per share.

With a consideration of S$229,786 this increased his deemed interest in the investment group from 73.46 per cent to 74.47 per cent.

The shares were acquired by Cosima Investments, a company that is 100 per cent owned by Lim.

His preceding acquisition was on Nov 22, with 3,100 shares acquired at S$1.23 per share, with his deemed interest in Plato Capital gradually growing from 65.13 per cent at the end of 2019.

Lim founded the Libra Capital Group in 1994 and co-founded the ECM Libra Group in 2002.

The holding company of the ECM Libra Group, ECM Libra Group is listed on the Main Market of Bursa Malaysia Securities. For its H1FY22 (ended Jun 30)

Plato Capital reported a net attributable loss of S$0.25 million compared to a net loss of S$1.04 million in H1FY21.

On Jan 10, Plato Capital announced that its 70 per cent owned subsidiary Positive Carry received a non-binding offer (subject to a due diligence by the potential third party purchaser) for all the shares owned by TYK Capital.

The indicative and tentative cash consideration for the offer is RM120 million (S$36.49 million).

The group noted that with the 70 per cent ownership, Plato Capital’s portion of the consideration for the potential disposal is an indicative and tentative amount of RM84 million.

Accrelist

On Jan 17, Accrelist : QZG 0% executive chairman and managing director Terence Tea Yeok Kian acquired 1,082,000 shares at an average price of S$0.05 per share.

With a consideration of S$53,812, it increased his total interest in the Catalist-listed investment holding company from 22.51 per cent to 22.87 per cent.

This followed his acquisition of 846,600 shares between Nov 30 and Dec 12, also at an average price of S$0.05 per share.

Tea is responsible for the overall growth of the group, leading its strategic direction, including acquiring and nurturing new businesses.

On Jan 13, Accrelist reported H1FY23 (ended Sep 30) revenue of S$50.7 million, a decrease of S$60.9 million from S$120.6 million in 1HFY22.

This was mainly attributed to the decline in the electronic component distribution business unit (EBU) revenue on the sharp decline in the demand of smartphones in China, coupled with the global shortage in microcontroller units.

Accrelist noted that its H1FY23 group gross profit margin did improve to 14 per cent from 7.7 per cent in H1FY22 through the EBU’s greater cost containment efforts in view of rising logistics and transportation costs and the ability to capitalise margin on chip shortages as official distributors.

Serial System

On Jan 13, Serial System : S69 0% substantial shareholder Sam Goi Seng Hui acquired 300,000 shares at S$0.08 per share.

With a consideration of S$24,900, this increased his total interest in Serial System above the 17 per cent threshold, from 16.99 per cent to 17.03 per cent.

Serial System is a leading distributor of electronic components and consumer products in Asia. It has one of the largest distribution networks in Asia, with 21 offices and 13 warehouses throughout Asia-Pacific.

It also has a wide customer base of more than 5,000, spanning a diverse range of industries such as consumer electronics, household appliances, industrial, telecommunications, electronic manufacturing services, security and surveillance, automotive and medical.

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