Huationg Global CEO increases interest to 7.75%

INSTITUTIONS were net buyers of Singapore stocks over the four trading sessions until Apr 4 inclusive, with S$49 million of net institutional inflow, as 25 primary-listed companies conducted buybacks with a total consideration of S$25.4 million.

Olam Group : VC2 0% bought back a total of three million shares at S$1.13 apiece over the four sessions. Its buybacks on the current mandate in the period under review represented 0.79 per cent of its total outstanding shares (excluding Treasury shares). Secondary-listed Jardine Matheson Holdings : J36 0% also acquired 89,500 shares over the week at an average price of US$36.88 per share.

Leading the net institutional inflow over the four sessions were OCBC : O39 0%, DBS : D05 0%, Sembcorp Industries : U96 0%, Mapletree Pan Asia Commercial Trust : N2IU 0%, Seatrium : S51 0%, Mapletree Logistics Trust : M44U 0%, ComfortDelGro : C52 0%, Thai Beverage : Y92 0%, Yangzijiang Shipbuilding : BS6 0% and UOB : U11 0%.

Meanwhile, Singtel : Z74 0%, Singapore Exchange : S68 0%, CapitaLand Investment : 9CI 0%, Hongkong Land : H78 0%, City Developments Limited : C09 0%, Frasers Centrepoint Trust : J69U 0%, Singapore Airlines : C6L 0%, AEM Holdings : AWX 0%, Jardine Matheson Holdings and Keppel Infrastructure Trust : A7RU 0% led the net institutional outflow over the four sessions.

The four trading sessions had close to 90 changes to director interests and substantial shareholdings filed for nearly 50 primary-listed stocks.

Directors or chief executive officers filed 19 acquisitions and four disposals, while substantial shareholders filed six acquisitions and four disposals.

Grand Banks Yachts

Willimbury, a private company incorporated in Australia, increased its substantial shareholding in Grand Banks Yachts : G50 0% above the 15 per cent threshold on Mar 28.

The married deal involved 1,709,500 shares being acquired at S$0.31 apiece, boosting the company’s direct interest to 15.79 per cent from 14.86 per cent. It had raised its direct interest above the 14 per cent threshold in June 2022, with that acquisition also transacted at an average price of S$0.31 per share.

On Feb 13, Grand Banks Yachts reported that its first-half profit after tax for the financial year 2024 ended Dec 31, 2023, increased 91.7 per cent to S$6.9 million year on year. This was amid higher revenue and gross profit margin as it accelerated the construction and sales of luxury boats.

The luxury recreational motor yachts manufacturer also declared an interim dividend of S$0.005 per share, its first interim dividend since 2008.

While ranking just outside the top 200 stocks by trading turnover in the 2024 year to date, the stock has ranked just outside the top 40 stocks by net institutional inflow. It also maintains a return-on-equity ratio of 19.5 per cent, with a 0.9 time price-to-book ratio and 4.9 times price-to-earnings ratio as at Apr 4.

Huationg Global

On Apr 1, Huationg Global : 41B 0% CEO and executive director Patrick Ng Kian Ann acquired 12.5 million shares in a married deal at S$0.142 per share. With a consideration of nearly S$1.8 million, this increased his direct interest in the civil engineering services provider to 7.75 per cent, from 0.69 per cent.

Mehta Vimesh Piyush was on the other side of the married deal, with his direct interest in the Catalist-listed company reduced to 0.96 per cent from 8.1 per cent. His previous acquisition was on Aug 31, 2023, with 200,000 shares acquired at an average price of S$0.131 apiece.

Ng also maintained a 68.7 per cent deemed interest in Huationg Global by virtue of his 25 per cent shareholding interest in Dandelion Capital, which is the immediate and ultimate holding company of Huationg. The acquisition brings his total interest in the Catalist-listed company to 76.45 per cent.

With more than 20 years of experience in the civil engineering construction industry, Ng has been responsible for the overall management, operations, strategic planning and business expansion of Huationg Global since 2000.

For its FY2023 ended Dec 31, the group’s revenue increased 15.1 per cent to S$174.6 million, from S$151.7 million in FY2022. This was attributed to higher occupancy in the dormitory operations segment, and work done for existing and new projects in the civil engineering service segment.

The cost of sales and services increased 11.3 per cent year on year to S$128.9 million in FY2023, in line with the increased business activities and revenue. The group recorded an attributable net profit of S$14.2 million for the year, a 40.2 per cent increase from S$10.2 million in FY2022.

It also posted positive net current assets of S$36.6 million as at Dec 31, and its order book for ongoing projects stood at about S$506.5 million as at the same date. These projects are expected to be completed in the next four years.

In its industry outlook, the group highlighted that it would continue to actively explore business opportunities in Singapore.

Huationg Global maintains a market capitalisation of S$29 million, which ranks the Catalist-listed stock among the lowest one-third of Singapore stocks by market capitalisation.

However, for the year to date, the stock has ranked among the top one-third of Singapore stocks by trading turnover.

It also maintains a return-on-equity ratio of 15.8 per cent, with a 0.3 time price-to-book ratio and two times price-to-earnings ratio as at Apr 4.

The board has proposed a final dividend of S$0.005 per ordinary share, subject to shareholders’ approval, for FY2023.

Together with the interim dividend of S$0.003 per ordinary share paid in September 2023, this brings the group’s total declared dividend for the financial year to S$0.008 per ordinary share. This represents a yield of 5.6 per cent, based on its end-FY2023 share price of S$0.143.

Manulife US Reit

On Apr 4, Manulife US Real Estate Management independent non-executive director Francis Koh Cher Chiew acquired 400,000 units of Manulife US Real Estate Investment Trust : BTOU 0% (Reit) at US$0.0755 per unit.

This increased his direct interest in the Reit to 450,000 units, or 0.025 per cent.

Hyphens Pharma International

On Apr 1, Hyphens Pharma International : 1J5 0% non-executive director Tan Kia King acquired 32,000 shares at S$0.275 per share.

This increased his total interest in the Catalist-listed company marginally to 28.02 per cent from 28.01 per cent.

Dr Tan has more than 25 years of experience as a medical doctor, starting his career as a medical officer in the Ministry of Health. He was also the managing director of Westpoint Family Hospital, where he was responsible for overseeing the day-to-day operations.

On Feb 27, Hyphens Pharma reported a net profit of S$8.6 million for FY2023 (ended Dec 31), on the back of record revenue of S$170.6 million. While the group’s net profit declined 24.8 per cent from FY2022, H2 FY2023 net profit increased by 45.7 per cent from H1 FY2023.

The leading speciality pharmaceutical and consumer healthcare group said that it will continue to invest in innovation to develop new and improved products under its respective brands.

It has also launched a new line of Ocean Health supplements in gummy form, which is designed for a younger demographic.

This is a strategic move to tap growing new markets and diversify its customer base.

The company’s subsidiary, DocMed Technology, is actively pursuing partnerships to enhance its digital healthtech platform to develop an integrated digital healthtech platform that encompasses a diverse range of healthtech solutions.

For FY2023, Hyphens Pharma also recommended a final dividend of S$0.0086 per share, which, together with the special interim dividend of S$0.036 per share already paid out, amounts to a total dividend of S$0.0446 per share. Based on the end-FY2023 share price of S$0.285, this represents a dividend yield of 15.6 per cent.

The special interim dividend of S$0.036 per share in H1 FY2023 was to reward shareholders, as part of Hyphens Pharma’s fifth anniversary celebration of its initial public offering.

The total dividend of S$0.0446 per share represents 161 per cent of the net profit after tax for FY2023.

Hyphens Pharma maintains a market capitalisation of S$85 million, and, as at Apr 4, maintains a return-on-equity ratio of 13 per cent, with a 1.4 times price-to-book ratio versus its five-year average price-to-book ratio of 1.5 times. The stock also maintains a 9.9 times price-to-earnings ratio.

Both Phillip Securities and CGS International maintain S$0.35 target prices on Hyphens Pharma as at Apr 4.

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