INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions till Apr 18, with S$73 million of net institutional outflow, as 24 primary-listed companies conducted buybacks with a total consideration of S$23.7 million.
City Developments : C09 0% led the consideration tally for the week, buying back 1,178,900 shares at an average of S$5.66 per share.
Digital Core Reit Management bought back 210,000 units of Digital Core Reit : DCRU 0%. In 2023, the manager repurchased nearly seven million units at a 26 per cent discount to net asset value (NAV). It maintains that this demonstrates its prioritisation of value creation over AUM (assets under management) growth, generating 60 basis points of accretion, while adding just 20 basis points to leverage.
Leading the net institutional outflow over the five sessions were Keppel : BN4 0%, CapitaLand Integrated Commercial Trust : C38U 0%, CapitaLand Investment : 9CI 0%, Singtel : Z74 0%, Seatrium : S51 0%, Singapore Airlines : C6L 0%, CapitaLand Ascendas Reit : A17U 0%, Mapletree Logistics Trust : M44U 0%, Singapore Exchange : S68 0%, and OCBC : O39 0%.
Meanwhile, UOB : U11 0%, DBS : D05 0%, Genting Singapore : G13 0%, Jardine Cycle & Carriage : C07 0%, Yangzijiang Shipbuilding Holdings : BS6 0%, Jardine Matheson Holdings : J36 0%, Sembcorp Industries : U96 0%, Best World International : CGN 0%, UOL Group : U14 0% and ComfortDelGro Corporation : C52 0% led the net institutional inflow over the five sessions.
The five trading sessions had close to 100 changes to director interests and substantial shareholdings filed for 40 primary-listed stocks. Directors or CEOs filed 20 acquisitions and five disposals, while substantial shareholders filed 14 acquisitions and four disposals.
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JEP Holdings
UMS Holdings acquired 7.3 million shares in JEP Holdings : 1J4 0% representing 1.77 per cent of the company from Andy Luong, who serves as chairman and CEO of both companies. This means Luong no longer maintains a direct interest in JEP Holdings. His deemed interest is 78.84 per cent, given that he holds 14.9 per cent of the issued share capital of UMS Holdings, which in turn maintains the 78.84 per cent direct interest in JEP Holdings.
For its FY 2023 (ended Dec 31), JEP Holdings achieved a net attributable profit of S$1.7 million on revenue of S$58.1 million. Luong noted that while these figures showed a decline compared to the previous year, mainly due to the semiconductor market slowdown, it is crucial to note the stabilisation in its performance during H2 FY2024. Also, all business segments of JEP Holdings remained profitable, with the aerospace business experiencing a notable 51.7 per cent increase in sales compared to FY 2022.
Luong also maintained that the combined production and engineering capabilities of both JEP Holdings and UMS Holdings means the latter can further entrench itself in the precision engineering industry and offer more integrated value-added engineering services for equipment manufacturers.
Plato Capital
On Apr 12, Plato Capital : YYN 0% chairman and non-executive non-independent director Lim Kian Onn acquired 283,000 shares at an average price of S$2.21 per share. With a consideration of S$625,430, the married deal increased his deemed interest in the Catalist-listed investment group from 79.81 per cent to 82.14 per cent.
Lim founded the Libra Capital Group in 1994 and co-founded the ECM Libra Group in 2002. The holding company ECM Libra Group is listed on the Main Market of Bursa Malaysia. He launched a conditional mandatory takeover of ECM Libra Group in May 2022. However, the offer did not receive adequate acceptance to fulfil the acceptance conditions.
Prior to founding the Libra Group, Lim was with Hong Leong Group, Malaysia, as executive director in the stockbroking arm between 1984 and 1993. He was responsible for corporate finance, research, and institutional sales.
In the recently published Plato Capital FY 2023 (ended Dec 31) annual report, Lim noted that in FY23, the group achieved a net profit of S$18.89 million, compared to S$3.61 million in FY22, a noteworthy fivefold improvement. Lim added that while this significant gain was mainly attributable to the disposal of the investment in the group’s precision engineering venture, TYK Capital, the group’s hospitality and education portfolio also registered profits on the back of improved demand and revenues.
Lim also highlighted that the group’s sole operating hospitality asset – a 50 per cent equity interest in the 452-key Tune Hotel KLIA2 – continued to record month-to-month improvements in occupancy, with an average occupancy of 82 per cent across the year. Revenue per available room of S$52 represented an 80 per cent increase relative to FY22.
As at Apr 18, the market capitalisation of the stock was S$30 million, with a price-to-book ratio of 0.52 on the back of the share price rallying from S$2.07 at the end of 2023 to S$2.50 as at Apr 18. The five-year average price-to-book ratio is 0.36. The stock maintained a return on equity ratio of 24 per cent, with group net current assets at S$26.09 million as at Dec 31, 2023, compared to S$4.43 million as at Dec 31, 2022.
Hai Leck Holdings
On Apr 11, Hai Leck Holdings : BLH 0% executive chairman and CEO Cheng Buck Poh acquired 302,900 shares at S$0.38 per share. This increased his total interest in the provider of project and maintenance services to the oil and gas and petrochemical industries from 88.8 per cent to 88.94 per cent. This comprises a 51.02 per cent direct interest and a 37.92 per cent deemed interest.
The deemed interest stems from his 31.68 per cent shareholdings in Cheng Capital Holdings. His previous trade on Dec 12 saw a more significant tranche of 8.9 million shares acquired, also at S$0.38 per share, representing 3.93 per cent of the outstanding shares. He has gradually built his total interest in the stock over the past seven years from 83.48 per cent.
Hai Leck Holdings provides engineering, procurement and construction services to the oil and gas, petrochemical, pharmaceutical and utilities industries. Cheng is also the founder of the group and responsible for charting and reviewing corporate directions and strategies for the group. He oversees management and development of the group’s business, locally and overseas; and is also responsible for sales and marketing for the group’s business.
The group operates through two business segments – project and maintenance services, and contact centre services. It has a presence in Singapore and Thailand, and commands a workforce of 2,200 employees. In February, it reported that its revenue for its H1 FY2024 (ended Dec 31) decreased by approximately S$1.3 million to S$31.4 million, from S$32.8 million recorded in H1 FY2023.
This was attributed to lower maintenance and contact centre services revenue, partially offset by higher project revenue. The group noted that cash and cash equivalents as at Dec 31, 2023, was higher at S$65.8 million compared to S$60.2 million as at Dec 31, 2022.
As at Apr 18, the market capitalisation of the stock was S$87 million, with a price-to-book ratio of 0.77, a marginal discount to the five-year average of 0.78.
LHT Holdings
Between Apr 17 and 18, LHT Holdings : BEI 0% managing director Yap Mui Kee acquired 103,800 shares at an average price of S$1.11 per share. With a consideration of S$114,836, this took her direct interest in the home-grown pallet manufacturer from 16.72 to 16.92 per cent.
Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021. She has overseen the sales and marketing functions of the group for more than 35 years and is responsible for exploring new markets for the company, and aligning the company’s research and development efforts for new products based on market needs.
Yap also plays an active role in the group’s efficient consumer response (ECR) pallet rental business in Singapore and Malaysia, and oversees the development of the group’s radio frequency identification ECR pallet tracking system. Yap noted that the group’s achievements depend largely on its core business of manufacturing, sale and service of pallets and packaging cases. She added that the ability to increase market share while maintaining profit margin is key to the business.
GSH Corporation
Between Apr 11 and 16, GSH Corporation : BDX 0% executive chairman Sam Goi Seng Hui acquired 1,233,700 shares at S$0.165 per share, taking his total interest in the South-east Asia property developer from 63.70 per cent to 63.76 per cent. In H2 FY2023 (ended Dec 31), GSH Corporation launched a soft opening of its first greenfield luxury hotel development in China. The group noted that New World Chongqing Hotel is well on track to launch officially in the second quarter of FY 2024.
International Cement Group
International Cement Group : KUO 0% executive director Chng Beng Hua acquired 3,022,700 shares for a consideration of S$55,021 on Apr 9. At an average price S$0.018 per share, this increased his total interest in the leading procurer of cement from 0.39 per cent to 0.44 per cent.
