Wilmar chairman increases stake at S$3.88 following Q3 update 

FOR the five trading sessions that spanned Oct 28 to 3 Nov, the Straits Times Index (STI) gained 2.9 per cent, with the Hang Seng Index gaining 0.4 per cent and the FTSE Bursa Malaysia KLCI declining 2.0 per cent.

Overall, institutions were net buyers of Singapore stocks for the five sessions ending Nov 3, with S$290 million of net inflows. This brought the 2022 year-to-Nov-3 net institutional inflows to just over S$750 million.

UOB : U11 0%, DBS : D05 0%, OCBC Bank : O39 0%, Sembcorp Marine : S51 0% and Singtel : Z74 0% led the net institutional inflows for the five sessions. Meanwhile, CapitaLand Investment : 9CI 0%, Suntec Reit : T82U 0%, Singapore Exchange : S68 0%, Sats : S58 0% and Jardine Matheson Holdings : J36 0% led the net institutional outflows for the five sessions.

Share buybacks

There were 17 primary-listed stocks conducting share buybacks over the five sessions ending Nov 3, with a total consideration of S$12.7 million, a similar pace to the consideration totals for the past two weeks.

Sembcorp Industries : U96 0% led the five-session buyback consideration tally, buying back 2.2 million shares at an average price of S$2.99 per share.

Sembcorp Industries has bought back 0.27 per cent of its issued shares (excluding treasury shares) on the current mandate, as of Nov 3.

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Director and substantial shareholder transactions

The five trading sessions saw close to 70 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 11 company director acquisitions with no disposals filed, while substantial shareholders filed seven acquisitions and two disposals.

Wilmar International

Between Nov 1 and 3, Wilmar International : F34 0%’s chairman and chief executive officer (CEO) Kuok Khoon Hong increased his deemed interest in the stock.

HPRY Holdings, which Kuok is deemed interest in, acquired 650,000 shares of Wilmar on Nov 1, then another 36,700 shares on Nov 2, and 485,300 shares on Nov 3, with all transactions booked at S$3.88 per share.

The total consideration of the three acquisitions was S$4,547,360 and increased Kuok’s total interest in Wilmar International from 12.94 per cent to 12.96 per cent.

Following the Oct 28 close, Wilmar International provided a financial summary, reporting its third consecutive record quarter result in 2022, with core net profit for the third quarter of 2022 surging 38 per cent from Q3 2021.

Wilmar International’s record results were driven by good performance across all core segments.

This brought the group’s core net profit to US$1.95 billion for the first nine months of 2022, up 49 per cent from a year ago.

Wilmar International operates an integrated agribusiness model that encompasses the entire value chain of the agricultural commodity business.

In the face of the commodity market volatility this year, Kuok noted in August that the integrated and diversified business model of Wilmar International, as well as its cautious approach to risk management when agri-commodities were at or near historical highs had enabled the group to deliver record results this year.

Kuok oversees the management of the group with a particular focus on new business development.

He maintains extensive experience in the industry and has been involved in the grains, edible oils, and oilseeds businesses since 1973.

Trans-China Automotive Holdings

Between Oct 28 and Nov 2, Trans-China Automotive Holdings : VI2 0% (TCA) executive chairman and CEO Francis Tjia acquired 2,584,300 shares of the Catalist-listed company at an average price of 19.3 cents per share.

The acquisitions were conducted through Octo Holdings Limited, which Tjia wholly owns, and the consideration for the acquisitions totalled S$498,345.

Meanwhile, on Oct 31, controlling shareholder TCA International Limited effected a partial disposal of 11,449,546 shares in the capital of TCA to certain limited partners of TCA, LP (LPs). This was in connection with a distribution of shares to the LPs on a pro-rata basis, announced on Oct 18.

The LPs receiving shares under this distribution included TCA Management Limited, which acquired 4,106,635 shares.

Octo Holdings Limited holds more than 20 per cent of voting shares in TCA Management Limited and thus maintains an interest in the shares directly held by TCA Management Limited.

This means that while TCA International Limited’s direct interest in TCA was reduced by 1.94 per cent on Oct 31, Octo Holding’s deemed interest in the company was reduced by a lesser percentage of 1.25 per cent.

Thus, despite the acquisitions between Oct 28 and Nov 2, Tjia’s total interest in TCA was reduced from 78.49 per cent to 77.68 per cent.

Tjia has more than 20 years of experience in the automobile industry in China, with TCA’s automobile dealership group focused on the distribution of premium and ultra-premium automobiles under the BMW, McLaren, and Genesis brands.

The group’s dealerships are primarily located in key cities in the Greater Bay Area and other select Tier 2 cities in China.

GSH Corporation

Between Oct 27 and Nov 1, GSH Corporation : BDX 0% executive chairman Sam Goi Seng Hui acquired 1,946,000 shares at 16.0 cents per share.

With a consideration of S$311,360, this increased Goi’s total interest in GSH Corporation from 63.85 per cent to 63.95 per cent.

In addition to serving as the executive chairman of Tee Yih Jia Food Manufacturing since 1977, Goi has a wealth of investment experience across a range of listed and private entities in numerous industries, such as food and beverage, consumer essentials, recycling, distribution, and logistics.

Asian Pay Television Trust

Between Oct 26 and 27, Dai Yung Huei, non-executive director of the trustee-manager of Asian Pay Television Trust : S7OU 0% (APTT), increased his deemed interest from 18.44 per cent to 18.48 per cent.

This saw 562,700 units of APTT acquired by Araedis Investment for a consideration of S$54,019 at 9.6 cents per unit.

His preceding acquisitions were between Oct 12 and 17, with 3,226,700 units of APTT acquired at 9.5 cents per unit, and back in January, with 3.6 million units acquired at 13.85 cents per unit.

Dai has gradually increased his deemed interest in APTT from 16.72 per cent prior to his appointment as non-executive director of the trustee-manager of APTT on Aug 13, 2021.

APTT is scheduled to announce key financial information and business updates for Q3 2022 and the first nine months of 2022, after the Nov 14 market close.

APTT has an investment mandate to acquire controlling interests in and to own, operate and maintain mature, cash generative pay-TV and broadband businesses in Taiwan, Hong Kong, Japan, and Singapore.

JB Foods

On Oct 27, JB Foods : BEW 0% CEO Tey How Keong acquired 36,000 shares at 48.0 cents per share.

With a consideration of S$17,280, this increased his total interest in the global cocoa ingredient producer from 46.88 per cent to 46.89 per cent.

This followed acquisitions of 113,400 shares at an average price of 49.6 cents per share between Sep 29 and 30.

Tey was appointed to the board on Jan 3, 2012. With his 25-plus years of experience in the cocoa business, he is responsible for the overall strategic, management and business development of the group.

In June, JB Foods announced plans to build a new cocoa processing facility in the Ivory Coast with the new factory, located in the industrial zone PK24, slated to be ready by Q4 2024.

JB Foods’ expansion to the Ivory Coast began with the incorporation of JB Cocoa in 2019.

Tey noted that as the biggest cocoa producer in the world, the Ivory Coast is strategically positioned with the availability of raw materials, boosts a robust and experienced workforce, and maintains developed infrastructure that facilitates efficient supply chain management.

He added that JB Foods’ decision to deepen its investment in the Ivory Coast and establish cocoa processing capabilities close to the cocoa source is also a part of the group’s direction to build capacity and momentum for sustainable growth.

Sinarmas Land

On Oct 28, Sinarmas Land : A26 0% lead independent director Hong Pian Tee acquired 90,000 shares of the company for a consideration of S$17,100 at 19.0 cents per share.

He maintains a 0.06 per cent direct interest in Sinarmas Land.

Hong was a partner of PwC from 1985 to 1999, prior to his retirement from professional practice.

As a veteran in corporate finance and advisory, with over 26 years of experience in prominent global accounting firm, he is also currently serves as a director of XMH Holdings : BQF 0%, Yanlord Land Group : Z25 0%, and YHI International : BPF 0%.

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