Institutions were net buyers of Singapore stocks over the four trading sessions through to Aug 10, with S$136 million of net institutional inflow, with eight primary-listed companies conducting buybacks with a total consideration of S$7.7 million.

DBS, UOB, Singtel, Yangzijiang Shipbuilding and OCBC led the net institutional inflow over the four sessions, while Venture Corporation, CapitaLand Investment, Genting Singapore, Suntec Reit and CapitaLand Ascott Trust led the net institutional outflow.

On the Thailand blue-chip Singapore Depository Receipts (SDR) front, PTT Exploration & Production SDR (trading code: TPED) was the top traded SDR on the back of strong crude oil prices while both CP All (trading code: TCPD) and Airports of Thailand SDR : TATD (trading code: TATD) attracted net buying interest from individual investors in the first two weeks of August. CP All SDR booked the largest individual investor inflows over the period.

CP All reported on Aug 10 that its Q2FY23 net profit was up 47.8 per cent from Q2FY22, driven by stronger performance from the convenience store (CVS) business which saw robust sales growth and gross margin expansion. Revenue and gross profit from the CVS business increased 16.1 per cent and 21.8 per cent per cent respectively, led by recovery in domestic consumption, and higher customer footfall along with greater sales of high margin products.

The Hour Glass

The Hour Glass bought back 337,600 shares over the week at an average price of S$2.08 per share. The current mandate has seen it buy back 600,600 of its own shares. The previous mandate saw the company buy back 14,250,100 of its shares which represented 2.12 per cent of its total number of issued shares (excluding treasury shares). In FY23 the group also deployed S$83.2 million in capital towards the acquisition of a prime commercial property in Brisbane, Australia, whose key long-term tenants include Hermes and The Hour Glass.

The Hour Glass maintains that share purchases or acquisitions provide the company with a mechanism to facilitate the return of surplus cash over and above its ordinary capital requirements, in an expedient and cost-efficient manner, and the opportunity to purchase or acquire shares when such shares are undervalued.

The group adds that purchases or acquisitions will also allow the directors greater flexibility over the company’s share capital structure with a view to enhancing the earnings and/or net asset value per share.

The Hour Glass said that FY23 profit-after-tax increased by 11 per cent in FY22 to a “high-water mark” of S$174.2 million. It increased its FY23 earnings per share to S$0.2591 from S$0.2234 in FY22. It also increased its net asset value per ordinary share in FY23 to S$1.18, from S$1.10 in FY22. The group is expected to report its H1FY24 results in early-to-mid November.

Fortress Minerals

Between Aug 2 and 3, Greger International increased its substantial shareholding in Fortress Minerals from 6.99 per cent to 7.03 per cent. This saw 174,300 shares acquired at S$0.307 per share for a consideration of S$53,475.

This increased the deemed interest of chief executive officer Ivan Chee Yew Fei in the Catalist-listed stock to 48.43 per cent and the deemed interest of chief operating officer Ng Mun Fey to 7.03 per cent. Both Chee and Ng are executive directors of Fortress Minerals.

Greger International’s preceding acquisition of Fortress Minerals shares was filed back on Mar 23, with one million shares acquired in a married deal at S$0.45 per share.

Fortress Minerals produces high grade iron ore mined from its Bukit Besi mine and Cermat Aman mine in Malaysia and sells its iron ore primarily to steel mills in Malaysia and trading companies in China. The Bukit Besi mine has a land area of 526.20 hectares which was leased to the group from the state government of Terengganu under a mining concession agreement expiring in year 2033.

On Apr 7, 2021, the group completed the acquisition of the entire issued and paid-up capital of Fortress Mengapur and its subsidiaries, which comprises Cermat Aman and Star Destiny, covering 951.68 ha. The group commenced production at the Cermat Aman mine in FY23.

Since the iron ore price index is beyond the group’s control, its primary focus is to optimise its output and production volume through continuing to expand and increase production throughput efficiency, yielding higher revenues and earnings. All Fortress Mineral’s iron ore is priced in US dollars against international iron ore indices as practised world-wide.

On Jul 12, Fortress Minerals reported revenue of US$13.3 million for its Q1FY24 (ended May 31), which declined 9.2 per cent from Q1FY23.

This was mainly attributable to a 12.4 per cent decrease in average realised selling price from Q1FY23 to US$104.92/dry metric tonne (DMT).

The decrease in revenue was partially offset by a 4.0 per cent increase in sales volume to 126,324 DMT for Q1FY24.

An increase in total production volume for Q1FY24 also yielded cost efficiencies for the group, which saw the it report a healthy gross profit margin of 62.5 per cent for Q1FY24, albeit narrowing from 70.6 per cent for Q1FY23.

Back in FY23, Fortress Minerals reported revenue of US$53.5 million, which increased a 23.5 per cent from FY22, mainly due to higher volume of iron ore sold.

The group noted that demand for its iron ore concentrate from regional steel mills remains strong and that increased focus on high grade magnetite iron ore continues to underpin demand, supported by efforts to decarbonise the global iron ore and steel industry.

Chee is responsible for the overall management and operations of the group, including formulating, implementing, and monitoring its strategic directions, growth plans, financial and risk management.

He also has extensive experience in civil and structural engineering and the mining industry and has undertaken several iron ore mining projects since the early 2010s and has built up his reputation and portfolio in the mining industry.

Ng is responsible for the overall management and day-to-day operations of the Bukit Besi Mine, including heading the group’s marketing, geology, mining, processing, and other supporting divisions. Prior to joining the group, Ng served various positions in several private companies in the advertising, Internet, publication, and engineering consultancy industry.

On Jun 28, the company gained the approval of its shareholders for the diversification of its business to include the mining of manganese, copper, nickel, cobalt, zinc, lead, tin, chromite, tungsten, gold, silver and other minerals, and the trading in iron ore and these minerals mined or sourced from third parties.

Chee noted last month that this diversification will enable fortress Minerals to expand its revenue streams and broaden its growth prospects for the long-term. He added that by leveraging its extensive industry expertise and strong relationships, the group remained cautiously optimistic in executing its next phase of growth as it strives to provide stable, diversified returns and enhanced value for shareholders.

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