Surge in director acquisitions and net institutional inflows

FOR the five trading sessions that spanned Feb 26 to March 4, the Straits Times Index (STI) gained 1.4 per cent while the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaged a 2.9 per cent decline.

This has brought the STI's total return for the 2021 year to March 4 to 6.2 per cent.

Within the STI, OCBC, UOB, DBS, Yangzijiang Shipbuilding Holdings and ST Engineering were recipients of the highest net institutional inflows from Feb 26 to March 4.

Outside the STI, Singapore Press Holdings, Thomson Medical Group, Raffles Medical Group, Q & M Dental Group and Suntec Reit saw the highest net institutional inflows for the five sessions.

Over the five sessions, the iEdge S-Reit Leaders Index declined 1.2 per cent, bringing its decline in total return for the 2021 year to March 4 to 2.6 per cent.

Among the business trusts, stapled trusts and Reits of the S-Reit sector, Suntec Reit, Ascendas India Trust and Mapletree Commercial Trust saw the highest net institutional inflows over the five sessions.

Share buybacks

There were 15 primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$32,593,306, up more than threefold from the S$9,842,773 for the preceding five sessions.

Wilmar International again led the buyback consideration tally over the five sessions, buying back 5,184,200 shares at an average price of S$5.31 per share.

This also meant that it accounted for 84 per cent of the weekly consideration tally.

As of March 4, Wilmar had purchased 0.80 per cent of its issued shares (excluding treasury shares) on the current mandate.

The five sessions also saw Singapore Exchange buy back 217,400 shares at an average price of S$9.94 per share while OUE bought back 1,218,300 shares at an average price of S$1.15 per share.

Director and substantial shareholder transactions

The five trading sessions saw 115 changes in director interests and substantial shareholdings filed for close to 50 primary-listed stocks.

This included 27 company director acquisitions and two company director disposals, with substantial shareholders filing 21 acquisitions and seven disposals.

United Global

On March 1, United Global non-executive chairman, Edy Wiranto acquired 2.6 million shares of the Catalist-listed company for a consideration of S$1,092,000.

At 42 cents per share, the married deal took his total interest from 5.77 per cent to 6.59 per cent.

Mr Wiranto is responsible for the overall strategic direction of the United Global group.

On Feb 25, the independent lubricants manufacturer in Singapore and Indonesia reported a net profit attributable to shareholders of US$3.2 million for its FY20 (ended Dec 31).

As part of its transformation initiatives, on Jan 26, the group announced that its wholly owned subsidiary United Supply Chain (USC), had formed a joint venture company with Latitude Shipping, in which USC has a 45 per cent stake while Latitude Shipping owns the remaining 55 per cent.

United Global has a market value of S$142 million and listed on Catalist in July 2016, with a fully subscribed placement at 25 cents per share.

First Sponsor Group

Between Feb 26 and March 1, First Sponsor Group (FSGL) non-executive chairman Calvin Ho Han Leong acquired 496,900 shares of the listed company for a consideration of S$680,011.

At an average price of S$1.39 per share, this increased his total interest in the property development, property holding and property financing company from 46.08 per cent to 46.14 per cent.

Appointed as the non-executive chairman of the company in April 2015, Mr Ho had served as the non-executive vice-chairman of the company since October 2007.

GHY Culture & Media

On March 1, GHY Culture & Media (GHY) executive chairman and group CEO Guo Jingyu acquired 655,800 shares of the recently listed Mainboard company for a consideration of S$490,597.

At an average price of 74.8 cents per share, this took his total interest in GHY from 59.70 per cent to 59.76 per cent.

GHY's IPO price in December 2020 was 66 cents per share.

Mr Guo founded the entertainment business, which focuses on the production and promotion of dramas, films and concerts. On Feb 26, GHY reported that its FY20 (ended Dec 31) revenue grew 92.6 per cent from FY19 to approximately S$127.1 million, led by its core TV programme and film production business.

The group also continued its revenue diversification strategy, with revenue from customers in Singapore contributing more than 30 per cent of its revenue in FY20, up from 1.4 per cent in FY2019.

With the results, Mr Guo noted that content innovation remains the group's core foundation.

GHY substantial shareholder Ho Ah Huat also acquired 148,900 shares at an average price of 74.8 cents per share on March 1.

Kingsmen Creatives

On March 2, three directors of Kingsmen Creatives increased their interests in the leading communication design and production group.

Group CEO Andrew Cheng acquired one million shares of the listed company for a consideration of S$240,000. This took his direct interest in Kingsmen Creatives from 0.33 per cent to 0.82 per cent.

Mr Cheng oversees the group's day-to-day management, as well as its corporate affairs, business development and also the strategic planning functions.

Kingsmen Creatives chairman and co-founder Benedict Soh Siak Poh increased his total interest from 23.04 per cent to 23.29 per cent, with Islanda acquiring 500,000 shares for a consideration of S$120,000.

Similarly, deputy chairman and co-founder Simon Ong Chin Sim acquired 500,000 shares of for a consideration of S$120,000.

All three transactions were married deals.

Both the chair and deputy chairman have contributed significantly to the growth of Kingsmen Creatives since its establishment in 1976.

On Feb 27, the group reported a net loss of S$11.1 million for its FY20 (ended Dec 31), compared to a net profit of S$0.5 million for FY19.

This was the first FY loss in the company's history, coinciding with the Covid-19 lockdowns, temporary closures and capacity limitations.

Mr Cheng noted that the group's working capital position remains healthy and the long-term business outlook is positive.

He added that as uncertainty remains, the group will continue its tight cost-control measures, while continuing to seek opportunities to deliver differentiated solutions, especially in areas such as thematic and experiential attractions and branded pop-up and experiential installations, as its markets recover.

As at Jan 31, the group had secured contracts of S$107 million, of which S$90 million is expected to be recognised in FY21.

Fu Yu Corporation

Between Feb 25 and March 1, Fu Yu Corporation independent director Haytham T KH S Al Essa acquired one million shares of the listed company for a consideration of S$285,000.

This took the direct interest of the recently appointed director to 0.13 per cent.

On Feb 23, Fu Yu Corporation reported that its FY20 (ended Dec 31) net profit grew 33.3 per cent to S$16.9 million from S$12.7 million in FY19, with the group ending the year with a cash balance of S$106.6 million and zero borrowings.

Although group revenue was softer, group CEO Elson Hew noted that the Singapore operations had displayed a resilient performance with stable revenue and higher segment profit.

Alset International

On March 2, Alset International (formerly Singapore eDevelopment) executive chairman and CEO Chan Heng Fai acquired 2,257,400 shares of the Catalist-listed company for a consideration of S$146,686, at an average price of 6.5 cents per share.

This increased his total interest in the company from 67.52 per cent to 67.64 per cent.

On March 1, the global enterprise reported an FY20 (ended Dec 31) net profit of S$59.7 million, a significant turnaround from a net loss of S$13.6 million in FY19.

JB Foods

Between March 1 and 2, JB Foods non-independent, non-executive director and vice-chairman Sam Goi Seng Hui acquired 222,700 shares of the listed company for a consideration of S$132,343.

At an average price of 59.4 cents per share, this increased his total interest in the major cocoa ingredients producer from 24.28 per cent to 24.35 per cent.

On Feb 25, JB Foods reported FY20 (ended Dec 31) revenue of US$417.8 million, an 18.5 per cent increase from FY19, mainly driven by higher shipment volume for the cocoa ingredients, and the increase in the average selling price of cocoa ingredients due to the increase in the price of cocoa beans.

Profit after tax of US$19.3 million was down 26.3 per cent from FY19, attributed to a lower profit margin contributed by an increase in cocoa bean costs arising from the introduction of the living income premiums in the Ivory Cost and Ghana.

iFAST Corporation

On March 3, iFAST Corporation executive director Dennis Goh Bing Yuan acquired 10,000 shares of the listed company for a consideration of S$58,500. This took his total interest in the wealth management Fintech platform from 0.31 per cent to 0.35 per cent.

Back on Feb 5, iFAST reported that its FY20 net profit grew 122.3 per cent from FY19, to S$21.15 million.

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