Highlights

SGX Market Updates

Author: SGX   |   Latest post: Mon, 8 Aug 2022, 5:04 PM

 

Last Week’s Institutional Rotation Into Banks & REITs

Author: SGX   |  Publish date: Mon, 8 Aug 2022, 5:04 PM


  • Last week, OCBC and DBS attracted a combined S$142M of net insti inflow, with UOB seeing S$35M of net outflow. The REIT Sector also attracted S$25M of net insti inflow, led by CICT and MPACT. Combined, Singapore-listed stocks attracted S$182M of net insti inflows last week, curbing net outflow in the 2022 YTD to S$48M.
     
  • Over the week, the STI gained 2.2%, returning to 9 May levels, with Jardine C&C, Wilmar Int, Sembcorp Ind, OCBC and City Dev leading the Index. The STI has generated a 7.6% total return in the 2022 YTD compared to an 11.7% decline for the FTSE Developed Index. The SDPR STI ETF, which turned 20-years in April 2022, will go ex-div on 11 Aug.
     
  • City Dev will also report 1H22 results on 11 Aug. On 28 July, Jardine C&C reported a 51% YoY increase in underlying profit. Last week, Wilmar Int reported 2Q22 core net profit more than doubled YoY to US$652M, Sembcorp Ind reported 1H22 net profit before exceptional items was up 94% YoY & OCBC reported 2Q22 net profit grew 28% YoY.
     
  • Raffles Medical Group saw the fifth highest net institutional inflows last week, while rallying 17% last week and reporting 1H22 group revenue of S$382M, representing 11.2% YoY growth. Attributed to the return of patients to its clinics, the 1H22 healthcare division revenue of S$256 million was up 24% YoY.
     

Last week, Singapore stocks attracted S$182 million of net institutional inflows, following the S$152 million of net outflow for the preceding week. This brought the combined net institutional outflow for the 2022 year to 5 Aug to S$48 million.

Banks, REITs led inflows. Last week, the Bank, REIT and Industrial Sectors saw the highest net institutional inflows, while other Financial Services, Telecommunications and Energy stocks saw the highest net institutional outflows. The 30 stocks that booked the highest net institutional inflows for the week are tabled below. Both Oversea-Chinese Banking Corporation (OCBC) and DBS Group Holdings (DBS) led the net institutional inflows over the week, with nine trusts of the REIT Sector among the 30 stocks.

 

30 Stocks with Highest Insti Net Flow for past 5D

Stock Code

Mkt Cap S$M

5D Px Change %

5D Insti Net Flow (S$M)

YTD Total Return %

YTD Insti Net Flow (S$M)

QTD Total Return %

Sector

OCBC Bank

O39

55,010

5

87.0

10

55.9

7

Banks

DBS

D05

84,515

4

54.7

3

-670.4

11

Banks

Keppel Corp

BN4

12,466

2

18.8

42

213.9

9

Industrials

CapLand IntCom T

C38U

14,121

-2

16.5

7

133.8

0

REITs

Raffles Medical

BSL

2,501

17

12.2

1

-24.0

21

Healthcare

Genting Sing

G13

9,959

2

10.8

8

22.4

15

Consumer Cyclicals

Mapletree PanAsia Com Tr

N2IU

10,046

1

9.8

N/A

-146.1

7

REITs

CityDev

C09

7,346

5

9.4

23

233.8

-1

Real Estate (excl. REITs)

Sembcorp Marine

S51

3,610

6

8.7

40

50.6

6

Industrials

SIA

C6L

16,100

-1

7.6

9

62.7

6

Industrials

JMH USD

J36

21,511

2

7.4

3

4.1

2

Industrials

Jardine C&C

C07

12,173

10

7.3

54

117.1

9

Consumer Cyclicals

Singtel

Z74

43,434

1

7.2

15

564.3

6

Telecommunications

Ascendas REIT

A17U

12,603

1

6.1

4

-63.0

5

REITs

CapitaLand Invest

9CI

20,331

1

5.8

21

128.8

4

Financial Services

Frasers H Trust

ACV

1,358

1

5.7

53

31.1

1

REITs

HongkongLand USD

H78

16,737

0

4.3

6

45.5

3

Real Estate (excl. REITs)

Keppel REIT

K71U

4,131

0

3.7

4

10.4

5

REITs

Wilmar Intl

F34

26,964

7

2.9

6

34.2

6

Consumer Non-Cyclicals

Samudera Shipping

S56

625

4

2.9

138

22.8

54

Industrials

NIO Inc. USD OV

NIO

43,364

8

2.2

N/A

-0.6

-6

Consumer Cyclicals

First Resources

EB5

2,303

6

2.0

-1

-6.3

-10

Consumer Non-Cyclicals

Aztech Gbl

8AZ

710

5

1.9

11

-10.4

13

Industrials

Frencken

E28

534

2

1.6

-35

-44.9

13

Technology (Hardware/ Software)

ThaiBev

Y92

16,454

2

1.5

2

-62.8

2

Consumer Non-Cyclicals

SPH REIT

SK6U

2,668

1

1.4

-1

1.7

3

REITs

DigiCore REIT USD

DCRU

1,355

0

1.3

-21

-8.6

15

REITs

Far East Hosp Trust

Q5T

1,261

-1

1.3

13

0.9

2

REITs

Suntec REIT

T82U

4,597

-1

1.3

11

26.0

0

REITs

Golden Agri-Res

E5H

3,551

8

1.0

18

5.1

12

Consumer Non-Cyclicals

Average

 

 

3

 

16

 

7

 

Total

 

452,336

 

304

 

728

 

 

Source: SGX, Refinitiv, Bloomberg (Data as of 5 August 2022)

In contrast to the above 30 stocks, there were 25 stocks that attracted net institutional outflows of more than S$1.0 million last week, led by United Overseas Bank, ST Engineering, NetLink NBN Trust, Yangzijiang Shipbuilding (Holdings) and Yangzijiang Financial Holding. Yesterday, Yangzijiang Shipbuilding (Holdings) reported a 70% YoY increase in 1H22 revenue to RMB 9.7 billion, backed by higher contribution from all segments.
 

Over the week, the STI gained 2.2%, returning to 9 May levels. For the first 30 weeks of 2022 the STI has generated a 7.6% total return, compared to an 11.7% decline for the FTSE Developed Index. With banks making up more than 40% of the STI, last week’s reporting of 2Q22 and 1H22 results of DBS and OCBC provided much focus for Index investors. For the Banks, 2Q22 YoY Net Profit growth varied from DBS reporting 7%, United Overseas Bank reporting 11% and OCBC reporting 28%. At S$6.0 billion for 2Q22, the combined quarterly NII of the trio has beat the recent combined NII high of S$5.75 billion in 3Q19. This was also the seventh consecutive quarter of QoQ NII growth. Note the SDPR STI ETF will go ex-dividend on 11 August.
 

OCBC also ranked among the five strongest performing STI stocks for the week. A total of four of the five of the STI’s strongest gainers last week have recently reported financial results. On 28 July, Jardine Cycle & Carriage reported a 51% YoY increase in underlying profit to US$522 million. Last week, Wilmar International reported 2Q22 core net profit more than doubled YoY to US$652 million, Sembcorp Industries reported 1H22 net profit before exceptional items was up 94% YoY to S$490 million, and OCBC reported 2Q22 net profit grew 28% YoY to S$1.48 billion. City Developments will report 1H22 results before the 11 August open.
 

A non-STI stock, Raffles Medical Group, saw the fifth highest net institutional inflows last week, while rallying 17% last week and reporting 1H22 group revenue of S$382 million, representing 11.2% YoY growth. Attributed to the return of patients to its clinics, the 1H22 healthcare division revenue of S$256 million was up 24% YoY. For more details, click here.
 

While global GDP releases are pointing to technical recessions or near technical recessions, both earnings and employment data are providing some key qualifications to the technical readouts. The above earnings reports have coincided with preliminary data from the Ministry of Manpower (MOM) showing Singapore’s employment (excl. migrant domestic workers) grew by 64,400 (or up 1.9% QoQ) in 2Q22, a faster pace than seen in 1Q22 (click here for more). Similarly in the US, the upbeat earnings season has been accompanied by 3.3 million jobs created in the first seven months of 2022. However, looking ahead, recent corporate outlooks have flagged risks including potentially more food and energy shortages from Russia-Ukraine conflict, more aggressive interest rate hikes and a significant slowdown in regional growth as challenges going into 2023.

  Be the first to like this.
 

What's Trending - SG Banks & Notable Earnings

Author: SGX   |  Publish date: Mon, 8 Aug 2022, 5:03 PM


What you need to know about the SG market last week

#whatstrending feat. Beansprout

Ever wondered what is currently driving the local and regional markets? #whatstrending is a new series addressing some of the most trending questions/topics on the markets for investors. Designed to be educational, expect to get factual information on what is driving sectors and stocks listed on SGX, featuring insights from professionals in the community.

 

Today, we hear more from Beansprout, Singapore’s next-gen investment research and advisory platform. Gerald Wong, founder and CEO, shares his thoughts on market developments.

 

Q: The results of Singapore banks are always closely watched. What are some of the key takeaways from the results?

From Gerald, founder and CEO of Beansprout:

Rising interest rates impact. Singapore banks benefited from rising interest rates and reported an increase in net interest margin (NIM) and higher profits in 2Q22. OCBC saw the sharpest improvement in NIM with a 16 basis point (bp) improvement compared to the previous quarter, while UOB’s NIM grew the least with a 9 bp increase.

What also caught our attention was that DBS shared its NIM had already exceeded 1.80% in July, rising further from 1.58% in 2Q22, and expressed confidence that NIM could reach 2.00% between 3Q22 and 4Q22.

Asset quality in focus. Investors are expressing growing concerns about a deterioration in asset quality for Singapore banks, after UOB reported an increase in non-performing loans (NPLs) to 1.7% in 2Q22 from 1.5% in 2Q21. UOB management explained that this was due to its exposure to a Chinese property company. In total, its direct exposure to Chinese developers is estimated to be 1% of its loan book.

China companies exposure. This increase in NPLs was not seen for DBS and OCBC. In fact, OCBC’s NPLs declined to 1.3% in 2Q22. In response to concerns about exposure to slowing Chinese growth, Singapore banks shared that they predominantly service the offshore needs of Chinese companies when they expand overseas, as well as existing customers within ASEAN when they expand into China. As a result, their exposure to domestic activities of Chinese companies is limited. DBS’ NPL remained unchanged compared to the previous quarter at 1.3%.

Balance sheet and dividends. Singapore banks continue to maintain a strong balance sheet position. DBS commented that it intends to review its dividend policy at the end of this year and could potentially hike its dividend in 2023.

Singapore banks reported an increase in net interest margins (NIM) in 2Q22

Q: Were there any other earnings announcements that surprised the markets?

From Gerald, founder and CEO of Beansprout:

STI Outperformance with 5.1% gain YTD. Apart from the strong results reported by the banks, the recent earnings season also brought many positive surprises for investors. This has helped propel the Straits Times Index (STI) to be one of the best-performing indices globally so far this year, with a year-to-date gain of 5.1% as of 5th August 2022.

 

Notable company earnings last week:

Singapore Airlines reported 1QFY23 operating profit of S$556mn as soaring air travel demand led to its second highest quarterly operating profit in its history. As of 1QFY23, SIA’S passenger capacity was at 61% of its pre-pandemic levels. It plans to reach 76% of its pre-COVID passenger capacity by 3QFY23.

Wilmar’s 1H22 profit rose 55% to US$1.2bn on the back of improved performance across all key business segments. An interim dividend of S$0.06 was proposed, the highest interim dividend since listing.

Sembcorp Industries announced its profit surged nearly 11 times in 1H22 to S$490 million, boosted by higher electricity prices in Singapore and India. Management indicated that it “may reward investors with a special dividend” for FY2022.

Raffles Medical Group reported a profit of $59.7 million 1H22, a 51% rise compared to the previous year. This came largely on the back of higher revenue from Covid-19-related services as well as a comeback in medical tourism as Singapore reopened its borders. According to SGX data, Chairman Dr Loo Choo Yong also bought more than 350k shares of Raffles Medical Group last week.

SIA plans to grow passenger capacity to 76% of pre-COVID levels by end-2022

For more Beansprout’s Fresh Takes, visit growbeansprout.com.

  Be the first to like this.
 

REIT Watch - SGTI 2022 Shows More S-Reits Reporting Non-financial Metrics

Author: SGX   |  Publish date: Mon, 8 Aug 2022, 11:20 AM


REIT Watch - Top 10 Reits and property trusts in the SGTI 2022

S-Reits and business trusts see an improvement in their Singapore Governance and Transparency Index (SGTI) 2022 scores, increasing marginally to 85.3 points from 85.0 last year.

In the Reits and business trusts category, Ascott Residence Trust retained its top position with an overall score of 110.6. Ascendas Reit overtook Far East Hospitality Trust this year with 108.7 points, with the latter ranked third at 107.4 points. Lendlease Global Commercial Reit, whose score improved 6.0 points, made it to the top 10 this year.

Findings by the SGTI highlighted year-on-year improvements in practices for interested person transaction (IPT) and performance fees. Moreover, the proportion of trusts that had a minimum of 3 full-time representatives with at least 5 years of relevant management experience improved from 91 per cent to 98 per cent. SGTI notes that Reits and business trusts, given their unique business models, are subjected to additional guidelines such as the Code on Collective Investment Schemes, hence complementing the existing SGTI framework (e.g. leverage, structure, IPT, competency of manager, fees).

Results pertaining to sustainability-related disclosures were also commendable with 84 per cent of trusts disclosing their non-financial performance indicators compared to 77 per cent last year.

Overall, the mean score of the Reits and business trust category increased by 0.3 points year on year and the mean bonus points for good disclosure practices increased by 0.7 points to 19.2 points. Mean penalty points for poor disclosure practices, such as discrepancies in corporate announcements, rose 0.3 points to 5.4 points.

The top 5 Reits and property trusts with the most year-on-year improvements in overall scores include: Keppel DC Reit (+17.5 points), Frasers Hospitality Trust (+13.4 points), Sabana Industrial Reit (+13.3 points), First Reit (+12.0 points) and Dasin Retail Trust (+9.7 points).

About SGTI

The SGTI is an annual assessment of Singapore-listed companies on their corporate governance disclosure and practices, as well as the timeliness, accessibility, and transparency of their financial results announcement. With increased scrutiny on corporate stewardship, SGTI offers stakeholders insights into the accountability and transparency of companies.

It is a collaboration among CPA Australia, NUS Business School's Centre for Governance and Sustainability, and the Singapore Institute of Directors, supported by The Business Times.

The SGTI 2022, which assessed companies based on their annual reports for Financial Year 2021 released by May 31, 2022, is divided into 2 categories – general category (489 companies) and the Reits and business trusts category (44 trusts).

The mean overall scores of both categories reached all-time highs of 70.6 (general category) and 85.3 (Reits and business trusts category) respectively, with improvements across all 5 pillars of the assessment framework. 

REIT Watch is a weekly column on The Business Times, read the original version

  Be the first to like this.
 

Raffles Medical Chair Ups Stake Following H1 2022 Results

Author: SGX   |  Publish date: Mon, 8 Aug 2022, 11:20 AM


Share Buybacks

FOR the 5 trading sessions that spanned Jul 29 to Aug 4, the Straits Times Index (STI) gained 1.5 per cent, with the FTSE China A50 Index declining 3.2 per cent, the Hang Seng Index falling 2.5 per cent and the FTSE Bursa Malaysia KLCI adding 0.9 per cent.

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$156 million of net inflows, following on from S$111 million of net outflow for the preceding 5 sessions.

OCBC, Singapore Airlines, DBS, CapitaLand Integrated Commercial Trust and Keppel Corporation led the net institutional inflows for the 5 sessions through to Aug 4.

Meanwhile, UOB, Singtel, Yangzijiang Shipbuilding, ST Engineering and NetLink NBN Trust led the net institutional outflows for the same period.

Share buybacks

There were 6 primary-listed stocks conducting share buybacks over the 5 sessions ended Aug 4, with a total consideration of S$26.5 million, up sharply from the S$1.2 million filed for the preceding 5 sessions.

Keppel Corporation, OCBC and Japfa led the consideration tally. Keppel bought back 2,756,000 shares at an average price of S$6.98 per share. On the current mandate, Keppel has bought back 1.80 per cent of its issued shares (excluding treasury shares).

On Jul 28, Keppel Corp reported an overall H1 2022 net profit of S$498 million, an increase of 66 per cent over the previous year, underpinned by profitability across all segments including the discontinued offshore & marine operations.

Excluding the discontinued operations, the group’s net profit from continuing operations in H1 2022 was S$434 million, or 26 per cent higher from H1 2021, bolstered by recurring income which grew 43 per cent to S$202 million.

During the H1 2022 results webcast, Keppel maintained that one of the original intentions of the S$500 million buyback programme (announced in January) was to have adequate cash for potential merger and acquisition transactions, particularly involving founders’ platforms.

Management noted that it may achieve better alignment with the founders where the company pays partly in cash, partly in shares and the share buyback is partly to fund that, and to fund its share plans at Keppel Corporation.

Director and substantial shareholder transactions

The 5 trading sessions saw close to 70 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks.

This included 5 company director acquisitions with one disposal filed, while substantial shareholders filed 6 acquisitions and 6 disposals.

Raffles Medical Group

Between Aug 1 and 2, Raffles Medical Group executive chairman and non-independent director Loo Choon Yong acquired 353,800 shares of the private healthcare provider for a consideration of S$435,484. At an average price of S$1.23 per share, this increased his direct interest from 10.82 per cent to 10.84 per cent. Dr Loo’s total interest in RMG is 53.16 per cent, which has gradually increased from 51.93 per cent at the end of 2014.

His preceding acquisition was on Mar 23, with 500,000 shares acquired at S$1.14 per share.

Dr Loo jointly founded 2 RMG clinics in 1976 with Dr Alfred Loh. RMG has since consistently grown over the years to serve more than 2 million patients and 7,000 corporate clients each year.

Prior to the Aug 1 market open, RMG reported H1 2022 group revenue of S$382.3 million, representing 11.2 per cent growth from H1 2021.

Attributed to the return of patients to its clinics, the H1 2022 healthcare division revenue of S$255.6 million was up 24.1 per cent from H1 2021. At the same time, revenue from the hospital services division, decreased to S$151.8 million, down 11.4 per cent from H1 2021, due to a decrease in the number of Covid-19 PCR diagnostic tests.

With revenue growth outpacing growth of staff costs, the group’s H1 2022 profit after tax at S$60.0 million represented 54.4 per cent growth from H1 2021. As of Jun 30, 2022, the group also remained in a net cash position with S$288.0 million in cash.

With the results, Dr Loo highlighted that RMG, having continued to build capabilities in the past year, is well-positioned to serve returning international and local patients as pandemic measures ease. The executive chairman added that the group was pleased that its patients continue to trust the Raffles brand of quality healthcare services, and that the group will continue to innovate to serve their evolving holistic healthcare and wellness needs.

On the Covid-19 front, RMG noted that with a high proportion of Singapore residents already fully vaccinated, the group’s Covid-19 support activities in the areas of stand-alone vaccination and PCR test centres have tapered off.

The group added that it continues to support the government in operating combined testing and vaccination centres in 2 locations in Singapore and in addition, it will continue to offer step-down Covid-19 care service in the community treatment facilities that it operates.

RMG further noted that while the group’s operations in China were impacted by lockdowns, it had received approval to set up an in-vitro fertilisation/assisted reproductive therapy centre at Le Cheng, Hainan, China. This facility will complement its 3 existing China hospitals’ offerings through forming a full life-cycle service chain within its obstetrics and gynaecology practices for its patients across China, targeted to serve the estimated 40 million women in China who may require reproductive fertility services.

First Sponsor Group

Between Aug 3 and 4, First Sponsor Group alternate director to the non-executive chairman, Ho Han Khoon, acquired 200,000 shares of the listed company for a consideration of S$250,800. At S$1.25 per share, this increased his total interest in the company from 31.43 per cent to 31.45 per cent.

On Jul 29, First Sponsor Group reported a H1 2022 net profit of S$71.3 million, representing 3.5 per cent growth from H1 2021, with the group also gaining 2 new residential development projects In Dongguan in July 2022.

Ho’s recent acquisitions followed similar acquisitions following the H1 2021 results, when he acquired 195,000 shares at S$1.40 per share.

Ho was appointed an alternate director to Calvin Ho Han Leong on May 19, 2014. He is currently holding the position of executive vice-president of Tai Tak, where he is responsible for overseeing Tai Tak group's overall business and financial strategy, investments and operations.

Baker Technology

On Aug 2, Baker Technology executive director Benety Chang acquired 132,000 shares of the company at an average price of 44.9 cents per share. With a consideration of S$59,275, this increased his total interest in the company from 52.96 per cent to 53.02 per cent.

Prior to this he had acquired 82,300 shares at 43.9 cents per share on May 4 and 279,000 shares at 44.8 cents per share on Mar 9.

As the major shareholder of the company, Dr Chang has extensive experience in the offshore oil and gas industry.

On Jul 29, Baker Technology reported H1 2022 group revenue of S$47.1 million, which represented a 55 per cent increase from H1 2021, primarily due to higher fabrication revenue and charter revenue on improved operating conditions in the marine offshore industry.

The group also noted that it benefited from its 54.98 per cent-owned subsidiary, CH Offshore, achieving marginal profits in H1 2022 compared to a net loss in H1 2021 primarily due to better vessel utilisation; and higher foreign exchange gains in the current period as the US dollar strengthened by about 3.0 per cent against the Singapore dollar in H1 2022 compared to about 1.7 per cent in H1 2021.

Asian Pay Television Trust

On Jul 28, non-executive director and vice-chair of the trustee-manager of Asian Pay Television Trust Lu Fang-Ming, acquired 330,000 units of the business trust for a consideration of S$38,940. At an average price of 11.8 cents per unit, this increased Lu’s total interest in APTT from 1.04 per cent to 1.06 per cent.

His preceding acquisitions were on Jul 14 with 300,000 units acquired at 12.2 cents per unit, and between Sep 23 and 27, 2021 with 1,888,400 units acquired at 13.0 cents per unit.

Lu has also been a corporate executive vice-president of Hon Hai/Foxconn Technology Group since the ODM manufacturing company he co-founded was acquired by Hon Hai/Foxconn Technology Group in May 2000.

APTT will announce its results for Q2 2022 and H1 2022, as well as the distribution for the quarter ended Jun 30, before the start of market trading on Aug 12.

 

Inside Insights is a weekly column on The Business Times, read the original version

  Be the first to like this.
 

REIT Watch - Starhill Global Reit Sees Strong Recovery in Sales and Shopper Traffic

Author: SGX   |  Publish date: Mon, 1 Aug 2022, 10:50 AM


REIT Watch - Upcoming earnings or business updates

In the current earnings season to-date, 23 S-Reits and property trusts have released their financial results or business updates for period ending Jun 30. Another 15 trusts are expected to announce between Aug 1 to Aug 12.

Last week, 14 S-Reits and property trusts unveiled half year or first quarter financial results ending Jun 30 while another 4 released quarterly business updates. Starhill Global Reit (SGReit) also announced its full year earnings last week.

SGReit reported full year net property income (NPI) of S$144.7 million, increasing 7.4 per cent from last year. As a result, income available for distribution grew 1.8 per cent on a full year basis to S$89.8 million. The Reit manager will retain S$1.9 million of the H2 FY21/22 income available for distribution for working capital requirements.

The Reit manager noted that its Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City, continue to contribute the bulk of total revenue at 59.9 per cent of total revenue in H2 FY21/22. During the period, Wisma Atria and Ngee Ann City saw significant improvements in tenant sales and shopper traffic with the arrival of international tourists, as well as increased domestic consumption following the relaxation of Covid-19 safe management measures.

For H2 FY21/22, tenant sales and shopper traffic improved 43.6 per cent and 32.1 per cent year on year, respectively. The Reit also noted that tenant sales in Q4 FY21/22 at Wisma Atria even surpassed pre-pandemic sales by 4.8 per cent over the corresponding period in Q4 FY18/19.

As of Jun 30, 2022, the gearing ratio of SGReit is maintained at 36.2 per cent with about 93 per cent of its debts on a fixed or hedged basis. The Reit believes that its prudent capital management approach has allowed it to buffer pressures brought about by global inflation concerns and rising interest rates. It remains cautiously optimistic that the Asia-Pacific retail and commercial real estate markets will continue to grow. 

REIT Watch is a weekly column on The Business Times, read the original version

  Be the first to like this.
 

IFAST Leads Buybacks, as Chairman Also Adds to Stake

Author: SGX   |  Publish date: Mon, 1 Aug 2022, 10:49 AM


Share Buybacks

FOR the 5 trading sessions that spanned Jul 22 to 28, the Straits Times Index (STI) gained 2.2 per cent, with the FTSE China A50 Index declining 0.8 per cent, the Hang Seng Index declining 0.6 per cent and the FTSE Bursa Malaysia KLCI gaining 2.3 per cent.

Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$111 million of net outflows, following on from S$65 million of net inflow for the preceding 5 sessions. Singapore Telecommunications, CapitaLand Integrated Commercial Trust, Oversea-Chinese Banking Corporation, Yangzijiang Financial Holding and Wilmar International led the net institutional outflows for the 5 sessions through to Jul 28.  Meanwhile, Yangzijiang Shipbuilding (Holdings), Mapletree Industrial Trust, AEM Holdings, Genting Singapore and Frasers Logistic & Commercial Trust led the net institutional inflows for the 5 sessions through to Jul 28.

Share buybacks

There were 8 primary-listed stocks conducting share buybacks over the 5 sessions ending Jul 28, with a total consideration of S$1.2 million, a similar pace to the S$1.7 million filed for the preceding 5 sessions. iFAST Corporation, The Hour Glass and Valuetronics Holdings led the consideration tally. iFAST Corporation’s buyback of 106,900 shares on Jul 25 at an average price of S$3.75 per share was the company’s second filed buyback on the current mandate, with the preceding buyback of 400,000 shares on Apr 26. The previous buyback mandate saw iFAST Corporation buy back 0.22 per cent of its issued shares (excluding treasury shares). Meanwhile, The Hour Glass has bought back 3.49 per cent of its shares on the current buyback mandate through to Jul 28. Its buybacks between Jul 24 and 26 were conducted at an average price of S$2.15 per share. For its FY22 (ended Mar 31), The Hour Glass recorded a robust 39 per cent increase in sales to S$1.03 billion, which resulted in its after-tax profit rising by 86 per cent to S$157.0 million. The group believes that demand momentum will remain buoyant and continues its focus on organic development throughout the Asia-Pacific region.

Director and substantial shareholder transactions 

The 5 trading sessions saw over 80 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 6 company director acquisitions with no disposals filed, while substantial shareholders filed 9 acquisitions and 5 disposals.

iFAST Corporation

On Jul 26, iFAST Corporation chairman and chief executive officer Lim Chung Chun acquired 34,100 shares of the company for a consideration of S$129,474. At an average price of S$3.80 per share, the acquisition took his total interest from 20.30 per cent to 20.31 per cent. His preceding acquisitions included 60,000 shares at S$4.69 per share on Apr 27, and 50,000 shares at S$5.96 per share on Feb 15.

On Jul 23, iFAST Corporation reported its net revenue for Q2 2022 grew 13.3 per cent year on year to S$29.86 million, despite the group noting global financial markets had gone through a very difficult period. The Q2 2022 net revenue included an initial contribution of S$3.92 million from iFAST Global Bank in the UK. iFAST Corporation is a wealth management fintech platform, with assets under administration of S$17.68 billion as of 30 Jun, 2022. The main business divisions of the group include the business-to-consumer (B2C) division, the business-to-business (B2B) division, and the fintech solutions/business-to-business-to-consumer model. Lim co-founded the company with the launch of its B2C division Fundsupermart.com in Singapore in 2000, following which the B2B division iFAST Financial was launched in 2001. He subsequently led the company’s regional expansion efforts, extending iFAST Corporation’s presence beyond Singapore to Hong Kong, Malaysia, China and India, building a well-established fintech ecosystem across the 5 markets.

Tung Lok Restaurants (2000)

Between Jul 21 and 26, Tung Lok Restaurants (2000) non-executive director Sam Goi Seng Hui acquired 97,600 shares of the company at 11.5 cents per share. With a consideration of S$11,217, this took Goi’s total interest in the award-winning restaurateur from 19.77 per cent to 19.80 per cent.

Goi is also the executive chairman of Tee Yih Jia Food Manufacturing, mainboard-listed GSH Corporation, PSC Corporation and Tat Seng Packaging Group.  He is also the vice-chairman of mainboard-listed Envictus International Holdings and JB Foods.

Tung Lok Restaurants (2000) currently operates 34 outlets of which 25 are directly owned, 3 are held by its associates and 6 others are under license/franchise. These restaurants are spread across Singapore, Indonesia, Japan, Vietnam and the Philippines, with the group’s business predominantly based in Singapore. While consolidating its outlet portfolio, the group has also been focusing its efforts to accelerate its digital transformation initiatives to streamline and optimise internal operational processes to improve productivity. Some digital solutions adopted in its FY22 (ended Mar 31) included virtual queuing systems, robot waiters, mobile ordering systems and voucher management systems.
 

Inside Insights is a weekly column on The Business Times, read the original version

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
 
 

176  206  223  588 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 Sembcorp Marine 0.118+0.003 
 HSI 21800MBeC.. 0.054-0.008 
 Acesian Partners 0.057-0.004 
 Eucon^ 0.063+0.004 
 HSI 21200MBeC.. 0.034-0.009 
 HSI 19600MBeP.. 0.083+0.001 
 Wilmar Intl 4.09-0.21 
 Oceanus^ 0.018+0.001 
 Logistics 0.054+0.005 
 CapitaMall Trust 2.10-0.03 
PARTNERS & BROKERS