Wilmar leads buyback tally; YZJFH directors acquire shares

FOR the 5 trading sessions spanning Apr 29 to May 5, the Straits Times Index (STI) gained 0.3 per cent, with the FTSE China A50 Index gaining 0.3 per cent, the Hang Seng Index gaining 2.5 per cent and the FTSE Bursa Malaysia KLCI declining 0.7 per cent. 

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$67 million of net inflow, following S$53 million of net outflow for the preceding 5 sessions.

OCBC : O39 0%, Keppel Corporation : BN4 0%, Singapore Telecommunications : Z74 0%, Venture Corporation : V03 0% and Jardine Cycle & Carriage : C07 0% led the net institutional inflows for the 5 sessions through to May 5.

Meanwhile, Yangzijiang Financial Holdings : YF8 0%, UOB : U11 0%, Mapletree Logisitics Trust : M44U 0%, Mapletree Industrial Trust : ME8U 0% and Thai Beverage : Y92 0% received the highest net institutional outflows for the 5 sessions.

Overall, the total net institutional inflows into Singapore stocks in the 2022 year to May 5 came up to S$452 million, while the STI generated an 8.4 per cent total return.

Share buybacks

There were 12 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$44.5 million, up from S$10.5 million for the preceding week.

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Wilmar International : F34 0%, Keppel Corporation and Hong Fok Corporation : H30 0% led the consideration tally.

Wilmar bought back 5.4 million shares at an average price of S$4.41 per share.

For the previous year’s mandate, it bought back 19.9 million shares, which represented 0.32 per cent of the company’s issued shares (excluding treasury shares).

The buybacks followed the company reporting financials for its Q1 FY22 (ended Mar 31) on Apr 29. Wilmar reported that its Q1 FY22 core net profit increased by 18.8 per cent year on year to US$503.4 million, attributed to the strong performance in the plantation and sugar milling segment, which was aided by firm palm oil prices. The company also noted that it has officially commenced its first central kitchen operations in Hangzhou, China in early April 2022. 

On Adani Wilmar, the company noted that from an IPO valuation of US$4 billion when it listed on the National Stock Exchange of India on Feb 8, 2022, its market capitalisation had increased by more than 3 times to above US$13 billion as at Apr 28, 2022.

In addition, the valuation for Shree Renuka Sugars, the 62.5 per cent owned Indian sugar subsidiary, has also gone up sharply from US$863 million on Dec 31, 2021 to US$1.6 billion as at Apr 28, 2022.

The company added that commodity prices had surged since the onset of the Russian and Ukraine conflict in February 2022 and while the contribution from the Russian and Ukrainian investments is not material, the sustained high commodity prices would benefit its plantation and sugar milling segment in the coming months.

Director and substantial shareholder transactions

The 5 trading sessions saw 100 changes to director interests and substantial shareholdings filed for close to 40 primary-listed stocks.

This included 18 company director acquisitions with no disposals filed, while substantial shareholders filed 3 acquisitions and 3 disposals.

Yangzijiang Financial Holding

The 5 sessions saw multiple directors of Yangzijiang Financial Holding (YZJFH) acquire shares in the company on the open market.

YZJFH was spun off from Yangzijiang Shipbuilding Holdings, with the aim of unlocking value for the company’s shareholders.

YZJFH intends to focus on investing in growth opportunities to achieve attractive risk-adjusted return, while seeking to provide a steady stream of dividends to shareholders through income generated from investment and fund management businesses.

Shareholders in Yangzijiang Shipbuilding received shares of YZJFH via a dividend in-specie on a one-to-one basis.

On Apr 29, YZJFH executive director and CEO Vincent Toe Teow Heng acquired 400,000 shares for a consideration of S$228,000 at 57.0 cents per share.

Toe has over 25 years of experience in fund management and investment advisory, M&A, IPO deals and fundraising, throughout Asia.

Prior to joining ICHAM, a Singapore-based fund management company as managing director, he was an investment banker at UBS, DBS Bank and JP Morgan.

Between Apr 29 and May 5, YZJFH lead independent director Chew Sutat acquired 312,000 shares for a consideration of S$164,820 at an average price of 52.8 cents per share.

Chew was senior managing director and a member of Singapore Exchange’s executive management team for 14 years.

Prior to joining SGX, he held senior roles at Standard Chartered Bank, OCBC Securities and DBS Bank, where he held varying portfolios in strategic planning and business development for institutional banking and private clients.

Between May 4 and 5, YZJFH independent director Chua Kim Leng acquired 150,000 shares for a consideration of S$73,500 at an average price of 49.0 cents per share.

He currently serves on the board of the Casino Regulatory Authority, United Overseas Insurance, ADDX and TEHO International. In 2018, Chua stepped down from his role as special adviser (financial supervision) at the Monetary Authority of Singapore after 25 years of distinguished service.

Sabana Industrial Reit

On Apr 28, Sabana Real Estate Investment Management CEO Donald Han Yong Lee acquired 100,000 units of Sabana Industrial Reit : M1GU 0% at 45.0 cents per unit.

On Apr 21, Han noted that the Reit had renewed 44.1 per cent of leases expiring this year and did so at positive rental reversion, while keeping the portfolio occupancy steady at 85.2 per cent.

For its FY21 (ended Dec 31, 2021) the gross revenue of Sabana Industrial Reit increased by 14.2 per cent year on year to S$81.9 million with net property income increasing 16.4 per cent year on year to S$52.0 million.

Han is an accomplished and respected consultant across most sectors in the property market, including industrial, having spent more than 30 years in various senior management and advisory positions.

His experience ranges from residential agency to collective en bloc, office investment sales to retail leasing, regional hospitality and hotel disposition to international project marketing.

JB Foods

On Apr 29, JB Foods : BEW 0% executive director and CEO Tey How Keong acquired 82,000 shares of the company for a consideration of S$40,180.

At 49.0 cents per share, this increased his total interest in JB Foods from 46.78 per cent to 46.81 per cent.

This followed his acquisition of 29,600 shares at 47.3 cents per share on Mar 23 and 400,000 shares at 52.0 cents per share on Dec 27.

JB Foods core business is in the production and sale of cocoa ingredient products, namely cocoa mass, cocoa butter and cocoa powder.

Tey is responsible for the overall strategic, management and business development of the group and has over 25 years of experience in the cocoa business.

He recently noted that while recent price volatility in cocoa has put pressure on the group to carefully manage its pricing strategy and the pace of expansion, investment and the ramp up of manufacturing capacity, the easing of travel restrictions around the world will continue to fuel stable growth of the cocoa and chocolate industry.

Tey added that the group remains optimistic that the overall cocoa consumption environment will continue on its growth trajectory post-pandemic.

Baker Technology

On May 4, Baker Technology : BTP 0%executive director Benety Chang acquired 82,300 shares of the company at an average price of 43.9 cents per share.

With a consideration of S$36,127 this increased his total interest in the from 52.92 per cent to 52.96 per cent.

Prior to this he acquired 279,000 shares of the company at an average price of 44.8 cents per share on March 9.

He is the major shareholder of the company and has extensive experience in the offshore oil and gas industry.

A-Sonic Aerospace

Between Apr 29 and May 4, A-Sonic Aerospace : BTJ 0% chief executive officer Janet LC Tan acquired 30,000 shares of the company for a consideration of S$21,300, at 71.0 cents per share.

This took her total interest in the company from 59.94 per cent to 59.98 per cent.

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

Tan has over 20 years of extensive experience in the aviation industry, with her responsibilities at A-Sonic Aerospace including the setting of the overall long-term business direction, developing business strategies, and implementing growth strategies for the A-Sonic Aerospace and its subsidiaries.

On Apr 22, A-Sonic Aerospace announced it had submitted to SGX-ST an application to extend the cure period beyond Jun 4, 2022 to exit the SGX Watch List.