INSTITUTIONS were net buyers of Singapore stocks over the four trading sessions through to Jan 4, with S$90 million of net institutional inflow, as 15 primary-listed companies conducted buybacks with a total consideration of S$1.3 million.

OUE led the consideration tally and bought back 241,700 shares at an average price of S$1.18 per share. This brings the total number of shares bought back on its current mandate to 3.72 million shares, or 0.44 per cent of OUE’s issued shares excluding treasury shares as at the date of the share buyback resolution. Food Empire : F03 0% bought back 200,000 shares at an average price of S$1.13 per share and has now bought back 1.37 per cent of its issued shares excluding treasury shares under its current mandate.

In the 2023 calendar year, 69 SGX primary-listed companies bought back shares by way of market acquisitions with a consideration totalling S$743 million. The S$743 million in buyback consideration followed more than 80 primary-listed companies on SGX buying back shares with a consideration totalling S$1.692 billion in 2022 and S$1.186 billion in 2021.

The decline in 2023 buyback consideration from 2022 was partially attributed to Keppel not conducting buybacks in 2023, following on from its S$500 million of buyback consideration in 2022. Its comparatively high buyback consideration in 2022 was on the back of the global asset manager and operator looking to create currency for potential M&A transactions. On Nov 29, 2023, Keppel announced an agreement with Aermont Capital Group to acquire an initial 50 per cent stake in the leading European real estate manager for a consideration of up to S$517 million. Keppel relayed it could fund this transaction through a combination of cash and treasury shares acquired via share buybacks in 2022.

Leading the net institutional inflow over the four sessions were DBS, Keppel, UOB, Thai Beverage, Genting Singapore, OCBC, Sembcorp Industries, Venture, Wilmar International and Jardine Matheson Holdings. Meanwhile, Singtel, SIA, CapitaLand Investment, Seatrium, Mapletree Pan Asia Commercial Trust, Singapore Technologies Engineering, Mapletree Logistics Trust, Sheng Siong, iFAST and Frasers Logistics & Commercial Trust led the net institutional outflows.

Close to 50 changes to director interests and substantial shareholdings filed for nearly 30 primary-listed stocks. Directors or CEOs filed 12 acquisitions and no disposals while substantial shareholders filed six acquisitions and five disposals.

Wing Tai Holdings

Wing Tai chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares. Between Jan 3 and 4, Cheng increased his deemed interest in the leading real estate developer and lifestyle retailer by 168,000 shares. Cheng maintains a 61.39 per cent total interest in the company. This has increased from 60.92 per cent, prior to Chow’s recent sequence of acquisitions which began Sep 8. Back on Dec 11, Wing Tai Holdings announced that its wholly owned subsidiary, Wincrown had entered a contract of sale with Citi Power to acquire 11-27 Tavistock Place, Melbourne, Victoria, for a total consideration of A$28 million with the consideration arrived at on a willing-buyer and willing-seller basis, and the acquisition completed that day.

Intraco

On Dec 28, Intraco executive chairman Mak Lye Mun acquired 200,000 shares for a consideration of S$52,020. At an average price of S$0.26 per share, this took his direct interest from 0.53 per cent to 0.71 per cent. His preceding acquisition was on Dec 12, with 100,000 shares acquired at S$0.27 per share.

Intraco is engaged in the distribution and trading of plastic resins and liquor, provision of mobile radio infrastructure management services and is a leading one-stop provider of passive fire protection products and services in Singapore. Intraco has also diversified into businesses related to digital assets, aiming to offer to listed and unlisted corporates and accredited investors a suite of strategic advisory services and products. The company is headquartered in Singapore and has presence in key emerging markets in Vietnam, Indonesia, Malaysia, and China. Intraco was placed on the watch-list of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) with effect from June 6, 2023, pursuant to Rule 1311(1) of the Listing Manual of the SGX-ST. In its most recent quarterly update on Nov 11, the group recorded an unaudited net profit before taxation of about S$0.2 million for 9MFY23 (ended Sep 30) compared to a loss of S$0.5 million for 9MFY22. As at Sep 30, 2023, the group’s net asset value was about S$59.3 million and net asset value per share was S$0.53 per share.

Mak was appointed executive chairman of Intraco in July 2022, and prior to that, he was the independent non-executive chairman of Intraco from April 29, 2021. With over 30 years of experience in the banking industry, Mak has held various significant roles. He began his career at Citicorp Investment Bank (Singapore) and later held senior positions in the corporate finance divisions of Vickers Ballas & Co, EY, and OCBC. In 2008, Mak was appointed as the CEO of CIMB Bank Singapore and country head, where he concentrated on enhancing synergy and value across the Singapore franchise. He held these roles until his retirement in December 2019. Subsequently, from January 2020 to March 2021, he served as an adviser to the CEO of CIMB Group.

SunMoon Food Company

Between Dec 22 and Jan 3, SunMoon Food non-independent and non-executive director Song Xiao Jun acquired 1,729,400 shares at S$0.023 per share. With a consideration of S$39,777, this increased his direct interest in the company from 1.44 per cent to 1.64 per cent. Song is also deemed interested in 13.84 per cent of the shares in SunMoon Food, held by Champion Financial (Hong Kong), bringing his total interest to 15.48 per cent. Song is experienced in supply chain management and has held management positions in this industry for close to 10 years. He also has the relevant experience in the food services business since year 2020 and is currently the director of Champion Financial (Hongkong).

Back in November, SunMoon Food Company reported group gross profit for H1FY23/24 (ended Sep 30) of S$504,000, with a gross margin of 3.69 per cent, compared to gross profit of $780,000 with a gross margin of 3.89 per cent for its H1FY22/23. The decrease in gross profit was mainly attributed to the decreased sales in fruits and seafood. Zhang Ye, the CEO of the consumer-focused distributor and marketer of branded high-quality fruits, vegetables and products, noted in July that after three difficult years of the pandemic, the group is finally able to witness the slow and gradual return to new normality. He added that although there are many challenges lurking in the world’s economies and trade orders, the company was still confident of climbing up to a new level.

Federal International (2000)

On Dec 29, Federal International (2000) executive chairman and CEO Koh Kian Kiong acquired 149,600 shares for a consideration of S$18,452. At an average price of S$0.123 per share, this took his total interest from 20.51 per cent to 20.61 per cent. His preceding acquisition was back in December 2021, with 200,000 shares acquired at S$0.109 per share. Koh is one of the founders of the group and has more than 47 years of experience in the oil and gas industry. He oversees the formulation of the group’s corporate strategies and business expansion plans and continues to be instrumental to the group’s continued success and growth.

For its FY22 (ended Dec 30), the oil, gas, and energy integrated service provider and procurement specialist reported revenue surged 126 per cent to S$135 million from FY21, mainly due to improved sales from the trading business, which was contributed by a project with PT Gunanusa Utama Fabricators (PTG) in Indonesia. For its H1FY23, the group revenue of S$29 million was lower than the S$91 million revenue in H1FY22 because of lower sales from the trading segment in Indonesia after the completion of the project with PTG in FY22.

This was partially offset by higher sales from the trading segment in Thailand. According to Federal International (2000), its trading segment provides a range of products and services in the areas of oil and gas, power, petrochemical, and pharmaceutical industries. These include assembly and distribution of flowline control products, distribution of oilfield drilling equipment for use on onshore and offshore rigs and drilling platforms, provision of complete fire protection and detection systems, as well as electrical products. The company highlighted that while the H1FY23 gross profit of S$7.9 million was lower than the H1FY22 gross profit of S$11.6 million, in line with the lower sales recorded in H1FY23, its gross profit margin was higher at 27.6 per cent in H1FY23, compared to 12.7 per cent in H1FY22.

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

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