INSTITUTIONS were net buyers of Singapore stocks over the four trading sessions till May 23, with S$58.5 million of net institutional inflow, as 21 primary-listed companies conducted buybacks with a total consideration of S$24.3 million.
On May 20, OUE : LJ3 0% announced a proposed off-market purchase of up to 84,038,036 shares representing 10 per cent of the total number of shares in issue. This is in accordance with an equal access scheme following the share purchase mandate approved at the Apr 26 annual general meeting.
Priced at S$1.25 per share, this represents a premium of 20 per cent over the average of the last dealt prices of OUE shares for the five consecutive market days immediately preceding the date of the offer, excluding transaction costs.
OUE chief executive officer Brian Riady noted that in addition to rewarding shareholders, this offer allows OUE to enhance shareholder value in the long term as it is accretive to the company’s earnings per share and net asset value per share.
Leading the net institutional inflow over the four sessions were UOB : U11 0%, DBS : D05 0%, OCBC : O39 0%, Singapore Exchange : S68 0%, Yangzijiang Shipbuilding Holdings : BS6 0%, Thai Beverage : Y92 0%, Capitaland Integrated Comm Trust : C38U 0%, City Developments : C09 0%, Great Eastern Holdings : G07 0% and Keppel DC Reit : AJBU 0%.
This brings the net institutional inflow in the 2024 year to May 23 for the three banks to S$500 million.
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Singtel : Z74 0%, Seatrium : 5E2 0%, Singapore Airlines : C6L 0%, Jardine Matheson Holdings : J36 0%, Jardine Cycle & Carriage : C07 0%, Wilmar International : F34 0%, Golden Agri-Resources : E5H 0%, Keppel : BN4 0%, Sats : S58 0% and Sembcorp Industries : U96 0% led the net institutional outflow over the four sessions.
The four trading sessions had close to 60 changes to director interests, with substantial shareholdings filed for close to 30 primary-listed stocks. Directors or CEOs filed 18 acquisitions and four disposals, while substantial shareholders filed 10 acquisitions and two disposals.
Wilmar International
Between May 17 and 20, Wilmar International chairman and CEO Kuok Khoon Hong increased his deemed interest in the global agri-business by 4,058,300 shares at an average price of S$3.13 per share. This increased his total interest from 13.91 per cent to 13.98 per cent.
Kuok has been gradually increasing his total interest in Wilmar from 12.94 per cent in October 2022.
On May 20, Wilmar executive and non-independent director Teo La-Mei also acquired 10,000 shares at S$3.12 per share. This increased her direct interest to 1.74 million shares, which represents 0.03 per cent of the company. Teo is the group legal counsel and company secretary.
Raffles Medical Group
Between May 16 and 20, Raffles Medical Group : BSL 0% executive chairman Loo Choon Yong bought 2.1 million shares at an average price of S$1.02 per share. This increased his total interest from 54.09 per cent to 54.20 per cent.
Since late February, Dr Loo has been gradually increasing his total interest in the stock from 53.02 per cent.
AEM Holdings
On May 20, AEM Holdings : AWX 0% independent director Andre Andonian bought 207,000 shares at S$1.87 per share. With a consideration of S$504,911, this acquisition took his direct interest in the provider of global semiconductor and electronics test solutions to 0.09 per cent.
This is Andonian’s first acquisition of AEM Holdings shares since he joined the board in July 2022. He has over 30 years of experience in consulting companies across the semiconductor, industrial and electronics, automotive and assembly, and aerospace and defence industries on strategic, operational and organisational topics.
He also has extensive experience in transforming companies into global leaders and in the assessment and development of talent.
He has held multiple executive leadership roles across Europe, the US and Asia during his 34 years at McKinsey & Company, such as managing partner of McKinsey Japan, Global and Americas leader of McKinsey’s advanced industries sector, and most recently, the managing partner of McKinsey Korea. He currently supports McKinsey & Company as special adviser/senior partner emeritus in North Asia.
AEM Holdings maintains its revenue guidance for H1FY24 (ending Jun 30) of S$170 million to S$200 million, and will provide H2FY24 guidance in its H1FY24 earnings press release.
UMS Holdings
Between May 16 and 17, UMS Holdings : 558 0% chairman and CEO Andy Luong acquired 1,833,600 shares at an average price of S$1.07 per share. This increased his deemed interest in the precision engineering group from 14.99 per cent to 15.25 per cent.
The core business of UMS Holdings is the manufacture of precision machining components, assembly and integration of equipment modules for semiconductor equipment manufacturers. This segment accounted of 87 per cent of group revenue in FY23 (ended Dec 31), and 85 per cent of group revenue in Q1FY24. Its overall Q1FY24 revenue declined 33 per cent from Q1FY23, and fell 27 per cent from Q4FY23.
During Q1FY24, the group took firm action to drive revenue, new customer acquisitions and working capital improvements to enhance its ability to capture new growth opportunities.
The group noted that this is in line with global production resources continuing to shift their focus towards South-east Asia, particularly Malaysia, where UMS Holdings has grown its presence with the successful completion of its 300,000 square foot factory in Penang.
LHT Holdings
Between May 20 and 23, LHT Holdings : BEI 0% managing director, Yap Mui Kee, acquired 221,700 shares at an average price of S$1.075 per share. With a consideration of S$238,230, this took her direct interest in the home-grown pallet manufacturer from 17.37 to 17.79 per cent.
Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021.
NetLink NBN Trust
On May 23, NetLink NBN Management executive director and CEO, Tong Yew Heng, acquired 100,000 units of NetLink NBN Trust : CJLU 0% at S$0.865 per unit. This increased his direct interest in the business trust from 850,000 units to 950,000 units.
His preceding acquisition was in February, with 100,000 units acquired at S$0.845 per unit.
Baker Technology
On May 20, Baker Technology : BTP 0% executive director Benety Chang acquired 114,000 shares at an average price of S$0.58 per share. With a consideration of S$66,046, this increased his total interest in the company from 55.79 per cent to 55.85 per cent.
His preceding acquisition was in January 2024, with 50,200 shares purchased at S$0.52 per share; and in September 2023, with 67,700 shares bought at S$0.55 per share.
Baker Technology, together with its subsidiaries, is a leading manufacturer and provider of specialised marine offshore equipment and services, focused on the oil and gas and renewables sectors.
The group reported a decrease of 7 per cent in revenue for FY23 (ended Dec 31) primarily due to lower fabrication revenue that was partially offset by higher chartering revenue in H2FY23.
About 69 per cent (41 per cent in FY22) of group revenue was from Asia-Pacific (excluding China and Singapore) as the group’s liftboat, Blue Titanium, as well as vessels belonging to CHO, a subsidiary of Baker Tech, were mainly deployed in this region.
During the year, the group’s revenue from Europe was reduced from S$24.2 million in FY2022 to S$3.9 million in FY2023 due to lower fabrication revenue. Cash and cash equivalents increased from S$71.5 million as at Dec 31, 2022 to S$87.5 million as at Dec 31, 2023, mainly due to better operating cash flows during FY23.
Dr Chang was director and CEO of Baker Tech since May 5, 2000, and stepped down as CEO in December 2018. He remains an executive director of the company and is its major shareholder. He is also the CEO and executive director of CHO.
He has extensive experience in the offshore oil and gas industry, and was the major founding shareholder and CEO of PPL Shipyard until his resignation in July 2012.
The current CEO of Baker Technology is his daughter, Jeanette Chang. She was the winner of the Best Chief Executive Officer award at the Singapore Corporate Awards in September 2023, while Baker Technology was the winner of Most Transparent Company Award (Energy) at the Sias Investors’ Choice Awards in 2023.
JB Foods
On May 17, JB Foods : BEW 0% executive director Goh Lee Beng bought 10,000 shares at S$0.495 per share, with a consideration of S$4,950. This followed her acquisition of 108,000 shares at S$0.50 per share between May 10 and 14.
Goh maintains a 47.66 per cent total interest in the provider of premium cocoa ingredient products, and has gradually raised her total interest in JB Foods from 47.37 per cent in mid-December.
The writer is the market strategist at Singapore Exchange (SGX). To read SGX’s market research reports, visit sgx.com/research
