INSIDE INSIGHTS

Staff share options continue to drive director filings

FOR the five trading sessions that spanned April 9 to 15, the Straits Times Index (STI) declined 0.1 per cent while the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaged a 0.2 per cent gain.

This has brought the STI's total return for the 2021 year to April 15 to 12.6 per cent.

Within the STI, DBS, Singapore Exchange, UOB, Mapletree Logistics Trust and Wilmar International received the highest net institutional inflows from April 9 to 15.

Outside the STI, Singapore Press Holdings, First Resources, Frencken Group, Frasers Centrepoint Trust and SIA Engineering saw the highest net institutional inflows for the same period under review.

Over the five sessions, the iEdge S-Reit Leaders Index gained 0.1 per cent, bringing the total return for the 2021 year to April 15 to 3.1 per cent.

Share buybacks

There were six primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$23,615,439, up from the S$17,475,533 in consideration for the previous week.

OCBC led the consideration tally. In its FY20 (ended Dec 31) annual report, OCBC noted that shares purchased under the share buyback programme are held as treasury shares, and recorded as a deduction against share capital, and may be subsequently cancelled, sold or used to meet delivery obligations under employee share schemes.

During FY20, OCBC purchased 6.9 million shares for S$63 million as part of its share buyback programme, while 12.0 million treasury shares were delivered to meet obligations under its employee share schemes.

Director and substantial shareholder transactions

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

This included 14 company director acquisitions and five company director disposals, with substantial shareholders filing eight acquisitions and six disposals.

Top Global

On April 9, Top Global executive director and controlling shareholder, Sukmawati Widjaja, acquired 112,000 shares of the company for a consideration of S$43,657.

At 39.0 cents per share, this increased her total interest in the real estate development, hospitality and leisure business from 86.92 per cent to 86.96 per cent.

In a series of acquisitions, Mdm Sukmawati has increased her interest in Top Global from 77.40 per cent prior to March 10.

She was previously the executive chairman of Top Global from March 12, 2010 to Dec 2, 2019.

She also co-founded the family- controlled Sinar Mas Group with her late father, Eka Tjipta Widjaja.

Sunpower Group

March and April are typically active months for the exercise of employee share options.

On April 12, Sunpower Group issued and allotted 1,338,000 ordinary shares, with 1,128,000 ordinary shares at an exercise price of S$0.116 each and 210,000 ordinary shares at an exercise price of S$0.379 each, pursuant to the exercise of options granted under the Sunpower Employee Share Option Scheme 2015.

Since the end of 2014, the share price of Sunpower Group has gained from 13.5 cents to an intraday high of S$1.00 on Jan 13, 2021, closing at 90.5 cents on April 15.

Executive chairman Guo Hong Xin and executive director Ma Ming founded Sunpower in 1997. On Feb 25, 2021, it reported that its FY20 (ended Dec 31) revenue rose 12.6 per cent year-on-year (yoy) to 4,058.8 million yuan (S$830.5 million), with group Ebitda increasing 13.0 per cent yoy to 798.2 million yuan.

The environmental protection specialist is involved in the investment, development and operation of green investment (GI) projects in the anti-smog sector in China.

As executive director Mr Guo noted that in FY20, the GI business stood out with its strong performance for the third consecutive year.

On Dec 31, 2020, the group proposed the disposal of the entire manufacturing and services (M&S) business at a consideration of 2.29 billion yuan.

This is to enable the group to keep its strategic focus on its GI business, and all resolutions were passed at a special general meeting on April 16.

As executive director and chairman of the board, Mr Guo is responsible for the overall management as well as the strategic planning & development of the group.

The issue and allotment of 1,338,000 ordinary shares which began trading on April 15, reduced Mr Guo's total interest in Sunpower Group from 19.40 per cent to 19.37 per cent and reduced Mr Ma's total interest in the group from 17.37 per cent to 17.34 per cent.

Mr Ma joined Sunpower in 1997 as the company's co-founder and served as deputy general manager.

Since the strategic expansion of the group into the GI business in 2015, Mr Ma had led the formulation of the strategic plan and business model. In addition, he is responsible for the implementation of its long-term objectives.

For FY21, Sunpower Group intends to continue to execute its two-pronged strategy that will firstly, solidify its market position as an environmentally-clean centralised provider of industrial steam, heating and electricity and secondly, tap its proven ability to identify and invest in additional promising GI projects that meet the investment objectives of the company.

Chemical Industries (Far East)

On April 8, S P Lim Holdings (SPLH) acquired 650,000 shares of Chemical Industries (Far East) for a total consideration of S$448,500 at 69.0 cents per share.

The married deal took the deemed interest of Chemical Industries (Far East) managing director Lim Soo Peng from 47.21 per cent to 48.07 per cent.

Back on Nov 2, the company reported that its H1FY21 (ended Sept 30) gross profit increased to S$8.9 million, from S$6.4 million in H1FY20.

The increase in gross profit was mainly due to lower cost of sales arising from a decrease in energy charges by S$2 million or 32.5 per cent in H1FY21 from H1FY20.

Mr Lim is also the founder of Chemical Industries (Far East).

As managing director, he manages and develops the businesses of the group and implements the board's decisions and also undertakes the executive responsibilities of the group's performance.

Low Keng Huat (Singapore)

Between April 8 and 13, Low Keng Huat (Singapore) executive director Alvin Teo Poh Kheng acquired 790,000 shares of the company for a total consideration of S$368,573, at an average price of 46.7 cents per share.

This took his deemed interest in the property development, hotel and investment business from 0.34 per cent to 0.45 per cent.

Recently appointed to the board of Low Keng Huat (Singapore) on April 5, Mr Teo is responsible for the group's property business in Singapore.

On April 1, the company reported that its FY21 (ended Jan 31) net profit attributable to shareholders increased to S$48.7 million, from S$12.8 million in FY20.

The increase was mostly attributed to higher profit in the investment segment due to a gain on the sale of the 50 per cent of equity interest in AXA Tower offset by lower profits in the hotel and development segments.

The net profit attributable to shareholders would have been a negative S$1.5 million if it excludes the gain on the sale of the 50 per cent equity stake in AXA Tower.

A-Sonic Aerospace

On April 9, A-Sonic Aerospace chief executive officer Janet LC Tan acquired 100,000 shares of the company for a consideration of S$57,500 at 57.5 cents per share.

This took her total interest in the company from 54.74 per cent to 54.91 per cent.

Ms Tan's preceding acquisitions were on March 16, with 179,400 shares acquired at 48.2 cents per share and 44,800 shares at 45.3 cents per share on March 10.

A-Sonic Aerospace has two areas of businesses, aviation and logistics, and operates in 28 cities in 16 countries, spanning four continents in Asia, North America, Sub-Continent India, and Europe.

Ms Tan's responsibilities include setting the overall long-term business direction, developing business strategies, and implementing growth strategies for A-Sonic Aerospace and its subsidiaries.

On June 30, 2020, A-Sonic Aerospace announced that SGX had granted the company a 12-month extension for the company to meet watchlist exit requirements, to June 4, 2021.

In its quarterly update filed on March 1, the company maintained that it remained on the SGX watchlist solely because it had not achieved an average daily market capitalisation of S$40 million.

For its FY20 (ended Dec 31), A-Sonic Aerospace achieved 127.5 per cent year-on-year growth in profit before tax to US$7.92 million, with its net book value strengthening 21.5 per cent year-on-year to US$36.24 million as at Dec 31, 2020.

The group's bank gearing level was also reduced by 4.8 per cent to US$1.76 million as at Dec 31, 2020.

In the FY20 annual report, Ms Tan highlighted that last year, A-Sonic Aerospace continued in its resolve to streamline its logistics business, to further solidify foundations, with the group focusing its efforts on two overarching strategies.

These involve each member entity in its logistics network to seek to operate efficiently, effectively and productively, while the group leverages on qualitative sources of growth with investments in technology and business productivity.

Union Steel Holdings

On April 9, Union Steel Holdings executive director Ang Yew Chye acquired 28,500 shares of the company for a consideration of S$12,255.

At 43.0 cents per share, this took his direct interest in the one-stop supply service firm for recycled ferrous and non-ferrous metals needs from 9.25 per cent to 9.33 per cent.

His preceding acquisition on April 5 saw Mr Ang acquire 23,000 shares at 40.0 cents per share.

Prior to this, Mr Ang had acquired 54,300 shares at an average price of 38.8 cents per share between March 17 and 24.

He 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 group and has almost 30 years of experience in the scrap metal recycling business.

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

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes