For the four trading sessions that spanned Apr 10 to 13, the Straits Times Index (STI) declined 0.2 per cent with the Hang Seng Index declining 0.5 per cent and the FTSE Bursa Malaysia KLCI booking a marginal gain.
Institutions were net sellers of Singapore stocks over the sessions with S$142 million of net outflow. DBS, OCBC, Singapore Technologies Engineering (ST Engg), CapitaLand Investment and Sembcorp Industries led the net institutional outflow. Meanwhile, Mapletree Logistics Trust, Genting Singapore, Cortina Holdings, Jardine Cycle & Carriage and Singapore Exchange led the net institutional inflow.
Share buybacks
There were 15 primary-listed companies conducting share buybacks over the four trading sessions through to Apr 13, with a total consideration of S$10.1 million. OCBC bought back 400,000 shares, with the average price paid at S$12.75.
On Apr 12, Singapore Technologies Engineering bought back 500,000 shares at an average price of S$3.65 per unit. Its motivations for conducting share buybacks are threefold. The first is that management strives to increase shareholders’ value by improving, inter alia, the return on equity of the group and share purchase is one of the ways through which the return on equity of the group may be enhanced. The second is that the share purchase mandate is an available option for the company to return surplus cash which is in excess of the financial and possible investment needs of the group to its shareholders. This also allows the company to have greater flexibility over, inter alia, its share capital structure and its dividend policy. Thirdly, repurchased shares which are held in treasury may be transferred for the purposes of employee share schemes implemented by the company. The use of treasury shares in lieu of issuing shares would also mitigate the dilution impact on existing shareholders.
Director and substantial shareholder transactions
The sessions saw close to 50 changes to director interests and substantial shareholdings filed for close to 20 primary-listed stocks. This included 11 company director acquisitions with one disposal filed, while substantial shareholders filed four acquisitions and five disposals.
Trans-China Automotive Holdings
On Apr 10, Trans-China Automotive Holdings (TCA) executive chairman and chief executive officer (CEO) Francis Tjia acquired 2,005,400 shares at S$0.154 per share. With a consideration of S$307,829, the married deal took his direct interest in the automobile dealership group from 1.12 per cent to 1.46 per cent. With a 68.15 per cent deemed interest, the acquisition increased Tjia’s total interest to 69.61 per cent. Headquartered in Hong Kong and Shenzhen, TCA is focused on the distribution of premium and ultra-premium automobiles under the BMW, McLaren, and Genesis brands. Earlier this month, Tjia maintained that the group focus remains in the premium and ultra-premium segment of the automotive market in China as it continues to believe that these segments will outperform the overall Chinese car market, not only in terms of long-term growth rates, but also in terms of stable earnings.
A-Sonic Aerospace
Between Apr 10 and 12, A-Sonic Aerospace CEO Janet LC Tan acquired 159,000 shares for a consideration of S$80,673 at an average price of S$0.507 per share. This took her direct interest in the company from 61.57 per cent to 61.72 per cent. 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, Ms Tan is also the promoter founder of A-Sonic Aerospace. The A-Sonic Group is engaged in two areas of businesses, aviation and logistics, operating in 28 cities in 15 countries, spanning four continents in Asia, North America, Europe, and Sub-Continent India. The logistics business specialises in various aspects of logistic solutions, including international and domestic multi-modal transportation, warehousing, distribution, customs clearance, and airport ground services. For its FY22 (ended Dec 31), A-Sonic Aerospace reported attributable profit of US$4.89 million, a 26 per cent decline from US$6.62 million in FY21 mainly because of the weaker financial performance attributable to its partially owned subsidiary in the PRC, particularly in the second half of 2022.
Megachem
On Apr 5, Megachem managing director Sidney Chew Choon Tee acquired 128,000 shares at S$0.50 per share. With a consideration of S$64,000 this increased his total interest in the one-stop specialty chemical solutions provider from 35.81 per cent to 35.91 per cent. Chew has gradually increased his total interest from 35.23 per cent at the end of 2019. Megachem will be celebrating its 35th anniversary in September 2023. Since its incorporation back in 1988 till now, the one-stop specialty chemical solution provider has distributed over 1,000 different types and grades of specialty chemicals, with a wide range of applications, to an established and diversified base of more than 2,000 industrial customers, comprising mostly well-known multinational companies.
JB Foods
On Apr 10, JB Foods non-independent, non-executive director and vice chairman Sam Goi acquired 111,900 shares of JB Foods at S$0.52 per share. With a consideration of S$58,188, the acquisition increased his total interest in the company from 24.50 per cent to 24.53 per cent. JB Foods is a major cocoa ingredients producer with operations spanning Asia-Pacific (China, Indonesia, Malaysia, and Singapore), Europe, North America and West Africa, and a cocoa bean processing capacity of 180,000 tonnes per year. Goi is the executive chairman of Tee Yih Jia Food Manufacturing Pte Ltd, and three SGX Mainboard-listed companies – GSH Corporation, PSC Corporation and Tat Seng Packaging Group. He also serves as vice chairman of Envictus International, as well as non-executive and non-independent director of Catalist-listed Tung Lok Group Restaurants (2000).
OxPay Financial
Between Apr 5 and 10, OxPay Financial non-executive non-independent chairman Ching Chiat Kwong acquired 300,900 shares, at an average price of S$0.09 per share. With a consideration of S$26,958, this increased his direct interest in the online-to-offline financial services technology provider from 27.61 per cent to 27.72 per cent. Ching possesses 20 years of property industry experience and is the also the executive chairman and CEO of Oxley Holdings.
Asian Pay Television Trust
Between Apr 10 and 11, non-executive director and vice-chair of the trustee-manager of Asian Pay Television Trust (APTT), Lu Fang-Ming, acquired 216,000 units of the business trust for a consideration of S$23,339. At an average price of S$0.108 per unit, this increased Lu’s total interest in APTT from 1.09 per cent to 1.10 per cent.
Lu has been a corporate executive vice president of Hon Hai/Foxconn Technology Group since the intelligent hub and switch products ODM manufacturing company he co-founded was acquired by Hon Hai/Foxconn Technology Group in May 2000. From 2014 to 2021, Lu was the chairman of Asia Pacific Telecom Group, Taiwan’s fourth largest mobile carrier.
On Apr 6, non-executive director of the trustee-manager of APTT, Dai Yung Huei, marginally increased his deemed interest at S$0.109 per unit. This saw 31,000 units acquired by Araedis Investment, with Dai’s deemed interest of APTT at 19.36 per cent. 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. APTT is the first listed business trust in Asia focused on pay-tv and broadband businesses
MindChamps PreSchool
On Apr 6, MindChamps PreSchool non-independent non-executive director Catherine Du acquired 70,000 shares at S$0.15 per share. With a consideration of S$10,500 this increased her total interest in the company from 52.13 per cent to 52.16 per cent. As the co-founder and director of the MindChamps group, Du been instrumental in the company’s growth and expansion globally, with a keen focus on addressing the global gap in early childhood education
Tai Sin Electric
On Apr 11, the spouse of Tai Sin Electric executive director and CEO Bernard Lim Boon Hock acquired more shares of the company. This increased Lim’s total interest by 20,000 shares. The shares were acquired by Pang Yoke Chun at S$0.39 per share. With a consideration of S$7,800, the acquisitions marginally increased Lim’s total interest in the leading South-east Asia industrial group which is 17.49 per cent. Lim has gradually increased his total interest in Tai Sin Electric from 14.82 per cent at the end of 2019.
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