INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Jan 18, with S$21 million of net institutional outflow, as 21 primary-listed companies conducted buybacks with a total consideration of S$52.5 million.

CapitaLand Investment again led the buyback consideration tally, buying back 13,197,700 shares at an average price of S$2.98 per share over the five sessions.

The company has now bought back a total of 35.67 million shares, or 0.70 per cent of its issued shares excluding treasury shares, under its current mandate. CapitaLand Investment will be reporting its FY23 results prior to the Feb 28 open.

Singapore Technologies Engineering bought back 1,380,700 shares at an average price of S$3.83 per share and has now bought back 0.3 per cent of its issued shares excluding treasury shares under its current mandate.

Secondary-listed Jardine Matheson also bought back its shares over each of the five sessions, with a total of 220,500 shares repurchased.

Leading the net institutional outflow over the five sessions were DBS, AEM Holdings, Keppel DC Reit, Thai Beverage, Singapore Airlines, Mapletree Logistics Trust, UOB, City Developments, Wilmar International and CapitaLand Ascott Trust.

Meanwhile, OCBC, Singtel, Seatrium, CapitaLand Investment, SATS, ComfortDelGro, Venture Corporation, Jardine Matheson Holdings, CapitaLand Ascendas Reit, and Sembcorp industries led the net institutional inflow.

The five trading sessions saw more than 50 changes to director interests and substantial shareholdings filed for over 20 primary-listed stocks. This was a similar pace to the filings as the preceding five sessions.

Directors or CEOs filed 16 acquisitions and no disposals while substantial shareholders filed three acquisitions and one disposal.

PSC

Headquartered in Singapore, PSC manufactures, distributes, and markets a diverse range of quality consumer products.

Some of the popular household brands that PSC owns and distributes include Royal Umbrella rice, Golden Peony rice, Golden Circle oil, Fortune tofu, noodle, and dessert, and Beautex paper products.

Its distribution reach covers all major supermarkets/hypermarkets, convenience stores, minimarts, e-commerce, food service, and commercial industries.

The three main business segments of PSC are consumer, packaging, and others. These operating segments are reported in a manner consistent with internal reporting provided to Sam Goi, who in his capacity as executive chairman, is responsible for allocating resources and assessing performance of the operating segments. 

For its H1 FY23 (ended Jun 30, 2023), PSC reported its group revenue reached S$238.3 million, brought about by lower contributions from the packaging business’ operations in China.

However, this was cushioned by the improved performance of PSC’s consumer business following the reopening of international borders in Malaysia.

Although the H1 FY23 saw the consumer business register 5.6 per cent growth in revenue from H1 FY22 on the back of higher demand from Malaysia operation, the operating margin declined due to increase in cost of supplies and higher labour and operating costs.

This followed the group reporting S$553 million revenue for FY22, a 3.7 per cent increase from S$533.3 million in FY21. For H1 FY23, the consumer business comprised 47 per cent of the group revenue, while the packaging business comprised 53 per cent. 

The group also continues to maintain a strong balance sheet with positive net cash position. As at Jun 30, 2023, the group’s balance sheet remained strong with a net asset position at S$392.9 million. Its cash and cash equivalents rose by S$19.4 million to S$184 million, boosted by the robust growth in cash generated from operating activities. 

In November, PSC announced that its wholly owned subsidiary, Fortune Food Manufacturing, had signed a sale and purchase agreement to acquire a piece of freehold vacant land, approximately 1.2 hectares, in Pontian, Johor, for a consideration of approximately RM3.3 million (S$964,695). Assuming conditions are fulfilled, this would be funded entirely by the group’s internal resources.

The group intends to build a factory to expand its current Malaysia factory’s production capacity by six to seven times, to produce Fortune’s full range of soya bean-based products, noodles, and desserts.

This new factory will also enable Fortune’s existing noodle production lines in Skudai, Johor Bahru, and grass jelly lines in Benut, Pontian, to be merged into a single facility.

Goi highlighted that the new factory will expand Fortune’s production capacity to enable the brand to penetrate deeper into the vast Malaysian market and grow its market share through its existing FMCG network and channels.

This follows his intentions to scale up PSC, expand its market footprint and enlarge the mindshare of its brands relayed back in April last year.

The stock maintained a total market capitalisation of S$180 million as of Jan 18. 

Goi is also the executive chairman of Tee Yih Jia Food Manufacturing, Mainboard-listed GSH Corporation : BDX 0% and Tat Seng Packaging Group : T12 0%.

He is also the vice-chairman of Mainboard-listed Envictus International Holdings, JB Foods and a non-executive and non-independent director of Catalist-listed Tung Lok Group Restaurants.

On Jan 12, Goi also acquired 98,400 shares of JB Foods at S$50.5 per share. This increased his total interest from 24.68 per cent to 24.71 per cent.

His preceding acquisition was on Jan 4, with 119,000 shares bought at S$0.49 per share.

JB Foods is a major cocoa ingredients producer with operations spanning the Asia-Pacific, Europe, North America and West Africa, and a cocoa bean processing capacity of 180,000 tonnes per year.

Between Jan 11 and 17, Goi also acquired 23,900 shares of GSH Corporation at an average price of S$0.165 per share.

The principal activities of GSH corporation are its property development business, hospitality business, in addition to its frozen food trading business.

Goi maintains a total interest of 63.65 per cent in GSH Corporation.

Back in August last year, GSH Corporation noted that it had expected to see a recovery in tourist arrivals in Kota Kinabalu, Sabah, and its hospitality business was expected to gain from that.

With the opening of travel from China, GSH Corporation noted that it was also seeing increased interest in the property business in Malaysia, while the real estate industry in China remained challenging.

EnGro Corporation

Between Jan 11 and 16, EnGro Corporation chairman and CEO Tan Cheng Gay acquired 79,500 shares at S$0.81 per share.

This increased his total interest in the provider of building materials from 14.74 per cent to 14.81 per cent. His preceding acquisition was on Nov 22, with 20,000 shares acquired at S$0.75 per share.

Tan is a stalwart of the company, having been with EnGro Corporation since its inception.

He was appointed director in 1973 and has since served as the executive director to steer the strategic direction and vision of the group.

The group’s core business is manufacturing and distribution of building materials and specialty polymers. In addition, the Company is also an investment holding company.

Accrelist

Between Jan 11 and 17, Accrelist executive chairman and managing director Terence Tea Yeok Kian acquired 800,100 shares at S$0.041 per share.

With a consideration of S$33,105 this increased his direct interest in the Catalist-listed company from 23.19 per cent to 23.44 per cent.

Tea is also deemed interested in the 4,359,100 issued shares held by his wife Aileen Sim. This brings his total interest to 24.84 per cent and followed his acquisition of 2,365,900 shares at S$0.039 per share between Jan 4 and 9.

A-Sonic Aerospace

Between Jan 12 and 17, A-Sonic Aerospace CEO Janet LC Tan acquired 69,000 shares for a consideration of S$28,492 at an average price of S$0.413 per share. This took her direct interest in the company from 61.92 per cent to 62.01 per cent. Tan has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.

A-Sonic Aerospace and its subsidiaries operate in the aviation and logistics sectors. In the aviation business, it engages in the purchase and sale of aircraft and aircraft engines.

For the logistics business, the group provides supply chain management services and logistic solutions, including international and domestic multi-modal transportation,warehousing, distribution, customs clearance, and airport ground services.

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

Enjoying this read?

• Subscribe now to the weekly SGX My Gateway newsletter for a compilation of latest market news, sector performances, new product release updates, and research reports on SGX-listed companies.
• Stay up-to-date with our SGX Invest Telegram channel.