ST Engg buys back shares at S$3.49; Digital Core Reit files first buyback

FOR the five trading sessions that spanned Nov 25 to Dec 1, the Straits Times Index (STI) gained 1.2 per cent, with the Hang Seng Index adding 4.8 per cent and the FTSE Bursa Malaysia KLCI declining 0.3 per cent.

Overall, institutions were net buyers of Singapore stocks for the five sessions, with S$161 million of net inflow. This brought the 2022 year to Dec 1 net institutional inflow to S$1.29 billion.

Jardine Cycle & Carriage : C07 0%, UOB : U11 0%, Chip Eng Seng : C29 0%, CapitaLand Integrated Commercial Trust : C38U 0%, CapitaLand Investment : 9CI 0%, Genting Singapore : G13 0%, Keppel Corporation : BN4 0%, Thai Beverage : Y92 0%, Singapore Airlines : C6L 0% and Sheng Siong Group : OV8 0%led the net institutional inflow for the five sessions.

For Singapore’s 100 most traded stocks, the banks, consumer cyclicals, and the telecommunications sectors led the net fund inflow in November, with the three sectors albeit in a different order – telecommunications, banks and consumer cyclicals – also leading the net fund inflow for the past 11 months.

For November, the Reit sector led the net fund outflows, with the sector also leading the net fund outflows over the past 11 months.

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Share buybacks

There were 24 primary-listed companies conducting share buybacks over the five sessions ended Dec 1, with a total consideration of S$10.6 million, matching the consideration pace for the preceding week.

For the companies, Singapore Technologies Engineering : S63 0% (ST Engg) led the consideration tally, buying back 500,000 shares at S$3.49 per share. The company has bought back 0.18 per cent of its issued shares (excluding treasury shares) on the current mandate.

On Nov 28, ST Engg provided a business update, highlighting that group 9M 2022 revenue reached S$6.5 billion, a 19 per cent increase from 9M 2021, with strong contract wins of S$10.3 billion in 9M 2022, including S$4.8 billion secured in Q3 2022.

Digital Core Reit Management

On Dec 1, Digital Core Reit Management abought back 1.1 million units of Digital Core Reit : DCRU 0% at 61.9 US cents per share. With a consideration of US$681,923, the units represented 0.1 per cent of the issued units.

Prior to the Dec 1 open, the leading pure-play data centre Reit announced that it intends to proceed with the 100 per cent debt-funded acquisition of a 25 per cent interest in a Frankfurt facility for approximately US$140 million, and no longer intends to proceed with the equity fund raising scenario.

This week (Dec 6) will mark the one-year anniversary since the listing of Digital Core Reit which is sponsored by Digital Realty.

As of Sep 30, the Reit’s portfolio value was US$1.45 billion, with 10 data centres and 100 per cent occupancy based on net rentable area.

Director and substantial shareholder transactions

The five trading sessions saw close to 80 changes to director interests and substantial shareholdings filed for 30 primary-listed stocks.

This included 10 company director acquisitions with no disposals filed, while substantial shareholders filed five acquisitions and one disposal.

Asian Pay Television Trust

Between Nov 23 and 28, the non-executive director of the trustee-manager of Asian Pay Television Trust : S7OU 0% (APTT), Dai Yung Huei, increased his deemed interest from 18.59 per cent to 18.75 per cent.

This saw 2,825,500 units of APTT acquired by Araedis Investment for a consideration of S$305,668 at 10.8 cents per unit.

Dai is the chairman of Da Da Digital Convergence Co and the founder of Dafeng TV – the first publicly traded cable TV provider in Taiwan, which operates in domestic markets including New Taipei City and Kaohsiung City. Between 1996 and 2019, Dai was the chairman of Dafeng TV.

Baker Technology

Between Nov 28 and 30, Baker Technology : BTP 0% executive director Benety Chang acquired 165,700 shares at an average price of 53.2 cents per share.

With a consideration of S$88,076, this increased his total interest in the company from 53.24 per cent to 53.32 per cent.

Previously Chang had acquired 21,000 shares at 47.0 cents per share on Nov 8, 301,700 shares at 47.5 cents per share on Aug 23, 115,000 shares at 46.0 cents per share on Aug 12 and 132,000 shares at of 44.9 cents per share on Aug 2.

As the major shareholder of the company, Chang has extensive experience in the offshore oil and gas industry.

Grand Venture Technology

On Nov 30, Grand Venture Technology : JLB 0% (GVT) executive chairman Ricky Lee Tiam Nam acquired 60,000 shares at an average price of 50 cents per share. With a consideration of S$30,000, this increased his direct interest in the innovative precision manufacturer from 15.35 per cent to 15.37 per cent.

His preceding acquisitions included 40,000 shares at 50.5 cents per share on Oct 14 and 50,000 shares at 76.8 cents per share between Jun 13 and 15.

Lee was one of the founding directors of the company. He is responsible for the overall strategic direction and development of the group. He has decades of experience in the manufacturing, assembly/servicing and precision engineering industries, beginning his career in 1982 as a machinist in Pan-World Precision Engineering.

On Nov 8, GVT providing a quarterly business update, said group revenue rose 3.2 per cent to S$32.9 million in Q3 2022, from S$31.9 million in Q3 2021, mainly lifted by a sharp increase in contributions from the electronics, aerospace, medical and others, segments. The increase was partially eroded by a slowdown in business activity in the semiconductor segment, with the manufacturing solutions and service provider maintaining that the near-term demand in the back-end semiconductor segment is expected to remain volatile.

LY Corporation

On Nov 29, LY Corporation : 1H8 0% founder and executive director Tan Kwee Chai acquired 200,000 shares of the company via a married deal.

At an average price of 7.8 cents per share, the consideration of the acquisition was S$15,600.

This took his total interest in the manufacturer and exporter of wooden bedroom furniture from 73.12 per cent to 73.17 per cent.

His preceding acquisition was back on Jan 11, with 714,200 shares acquired via a married deal, in addition to another 50,000 shares via the open market, at an average price of 11 cents per share.

Tan, who started furniture making in 1976, has been a director of LY Furniture since its incorporation and has been instrumental in the group’s growth, leading to the expansion of its business and operations.

A-Sonic Aerospace

Between Nov 25 and 29, A-Sonic Aerospace : BTJ 0% CEO Janet LC Tan acquired 13,000 shares for a consideration of S$7,944 at an average price of 61.1 cents per share. This took her direct interest in the company from 60.79 per cent to 60.80 per cent.

It followed the acquisition of 46,000 shares at 58.5 cents per share between Nov 21 and 23, 58,000 shares at 54.9 cents per share between Nov 10 and 16, and 19,000 shares at 52.3 cents per share between Nov 7 and 8.

Tan has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.

With over 20 years of extensive experience in the aviation industry, Tan is also the promoter founder of A-Sonic Aerospace.

Her current responsibilities include setting the overall long-term business direction, developing business strategies, and implementing growth strategies.

Megachem

Between Nov 24 and 25, Megachem : 5DS 0% managing director Sidney Chew Choon Tee acquired 10,000 shares at S$0.50 per share.

This increased his total interest in the one-stop specialty chemical solutions provider from 35.79 per cent to 35.80 per cent.

Chew has gradually increased his total interest from 35.23 per cent at the end of 2019. He was first appointed a director of the leading chemical player in Singapore and the region, in April 1989.

Accrelist

On Nov 30, Accrelist : QZG 0% executive chairman and managing director Terence Tea Yeok Kian acquired 132,700 shares at 4.8 cents per share.

With a consideration of S$6,336 this increased his total interest in the Catalist-listed investment holding company from 22.24 per cent to 22.28 per cent. (*See amendment note)

Tea is responsible for the overall growth of the group and his main role is to determine the strategic direction of the group, including acquiring and nurturing new businesses.

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

*Amendment note: An earlier version of this article gave an incorrect percentage figure for Terence Tea’s initial total interest in the company.