SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

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Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

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FOR the 5 trading sessions that spanned Jun 10 to 16, the Straits Times Index (STI) declined 3.5 per cent, with the FTSE China A50 Index gaining 1.2 per cent, the Hang Seng Index falling 4.5 per cent and the FTSE Bursa Malaysia KLCI sliding 2.2 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$166 million of net outflow, following the S$52 million of net outflow for the preceding 5 sessions. UOB, OCBC, Singapore Airlines, Thai Beverage and Keppel DC Reit led the net institutional outflows for the 5 sessions through to Jun 16.

 Share buybacks

 
There were 26 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 16, with a total consideration of S$122.8 million, more than doubling the previous week’s consideration tally. Wilmar International and Keppel Corporation led the consideration tally, buying back shares at average prices of S$4.08, and S$6.75 respectively.

 

Director and substantial shareholder transactions

 
The 5 trading sessions saw over 100 changes to director interests and substantial shareholdings filed for close to 50 primary-listed stocks. This included 19 company director acquisitions with 2 disposals filed, while substantial shareholders filed 15 acquisitions and 12 disposals.

 

AEM Holdings

 
The Employees Provident Fund Board’s (EPF) deemed interest in AEM Holdings (AEM) has once again crossed above the 5.00 per cent substantial shareholder threshold.  The EPF had reduced its deemed interest in AEM below the 5.00 per cent threshold on Feb 4 to 4.87 per cent when it sold some shares, but on Jun 9, it bought shares again and raised its deemed interest to 5.05 per cent.  EPF’s latest purchase of 550,000 shares at S$4.39 per share, is at a lower average price than the S$4.53 per share it had received when it sold shares and reduced its deemed interest in AEM to below the substantial shareholder threshold in February.

 

On Jun 16, AEM announced that it would create more than 300 additional jobs with the expansion of its Singapore, Malaysian and US operations. AEM’s Penang expansion will include an R&amp;D lab that will enable it to boost its R&amp;D capabilities, while it will also double its headcount in Malaysia to support the expansion, including new roles for technicians, engineers, customer support group, and supply chain management. AEM is also a Gold Sponsor and the sole sponsor of the SEMICON University Program at SEMICON SEA 2022, scheduled this week in Penang.

 

Separately, with effect from Jul 1, Andre Andonian will join the board of AEM as an independent director. At McKinsey &amp; Company, Andonian serves as a member of the global board, senior partner for the Singapore office, chairman of Japan and the managing partner for Korea. Back on May 5, AEM reported its highest quarterly revenue in its history at S$261.9 million for Q1 2022 (ended Mar 31), a 226.4 per cent year-on-year increase, while upwardly revising its FY22 revenue guidance to between S$700 million and S$750 million.

 

Mapletree Industrial Trust 

 
Between Jun 10 and 13, Mapletree Industrial Trust Management non-executive director Chua Tiow Chye acquired 250,000 units of Mapletree Industrial Trust (MIT) at an average price of S$2.49 per unit.

 
With a consideration of S$621,382, this increased his deemed interest from 0.05 per cent to 0.06 per cent. It followed his acquisition of 200,000 units at S$2.49 per unit on Feb 7 and 200,000 units at S$2.60 per unit on Jan 26.

 
Chua is also the deputy group CEO of Mapletree Investments, the sponsor of MIT. He focuses on driving the sponsor’s strategic initiatives including expanding and directing the sponsor’s international real estate investments and developments. He also directly oversees the sponsor’s global lodging sector as well as the private capital management function.

 
For the FY22 (ended Mar 31), MIT reported its gross revenue and net property income increased 36.4 per cent and 34.5 per cent year on year to S$610.1 million and S$472.0 million respectively. MIT owns 141 properties, comprising 85 properties in Singapore and 56 properties in North America, which includes 13 data centres in North America held through the joint venture with the sponsor.

 Uni-Asia Group

 
On Jun 13, Uni-Asia Group executive chairman Michio Tanamoto acquired 150,000 shares of the company for a consideration of S$156,000. At an average price of S$1.04 per share, this increased his total interest in the company from 3.24 per cent to 3.44 per cent. This closely followed his acquisition of 50,000 shares at S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 The Straits Trading Company

 
On Jun 13, The Straits Trading Company independent and non-executive director Tan Tiong Cheng acquired 30,000 shares of the company for a consideration of S$90,300, at an average price of S$3.01 per share. This increased his direct interest in the conglomerate-investment company from 0.03 per cent to 0.04 per cent. He is also an independent and non-executive director of UOL Group, the lead independent director of Heeton Holdings, and a non-executive independent director of Amara Holdings.

 
The same session also saw Straits Trading Company independent and non-executive director Chua Tian Chu acquire 7,000 shares of the company at S$3.00 per share.

 
Chua last acquired shares in the company in March, and both directors acquired shares in the company in January. 

 GKE Corporation

 
On Jun 15, GKE Corporation executive director and CEO Neo Cheow Hui acquired 500,000 shares of the company, for a consideration of S$52,000 at 10.4 cents per share. This increased his total interest in the provider of integrated warehousing and logistics solutions from 3.60 per cent to 3.67 per cent.

 
Neo has extensive experience in the warehousing and logistics industry which has played a pivotal role in developing high level strategies for the group and making major corporate investments over the last 20 years.

 Hong Fok Corporation

 
On Jun 10, Hong Fok Corporation executive director and joint CEO Cheong Sim Eng acquired 43,000 shares of the company, for a consideration of S$41,925 at 98.0 cents per share. Cheong maintains a 20.27 total interest in the property developer.

 
He is principally involved in the group’s overall operations and management, with greater emphasis in Singapore and he has over 37 years of experience in the property development business.

 Grand Venture Technology

 
Between Jun 13 and 15, Grand Venture Technology executive chairman Ricky Lee Tiam Nam acquired 50,000 shares of the company at an average price of 76.8 cents per share. With a consideration of S$38,375, this increased his direct interest in the innovative precision manufacturer from 15.33 per cent to 15.34 per cent. 

 
Responsible for the overall strategic direction and development of the group, Lee was one of the founding directors of the company.

 
He has over 38 years of experience in the manufacturing, assembly/servicing and precision engineering industries, beginning his career in 1982 as a machinist in Pan-World Precision Engineering.

 
On Jun 15, GVT executive director and CEO Julian Ng Wai Yuen also acquired 10,000 shares at an average price of 76.5 cents per share. This increased his direct interest in the company from 3.54 per cent to 3.55 per cent. Ng has more than 20 years of experience in the manufacturing and precision engineering industries.

 
In early May, GVT reported 19.5 per cent year-on-year growth in Ebitda and 8.9 per cent growth in net profit after tax for Q1 FY2022 (ended Mar 31), on the back of a 41.0 per cent revenue increase from S$23.0 million in Q1 FY2021 to S$32.5 million in Q1 FY2022.

 
Lee noted with the results that robust demand from the semiconductor industry saw GVT make good progress in its discussions with potential customers engaged in the manufacture of metrology and inspection, etching, and wafer deposition equipment. Lee added that when fully onboarded, these customers are expected to be the key drivers for the front-end semiconductor activities of GVT in the near future. In Q1 FY2022, the semiconductor sector contributed 67.2 per cent to the group’s total revenue, comparable with the 71.1 per cent contribution in FY21 and 68.7 per cent contribution in 2020.

 Oxley Holdings

 
Between Jun 14 and 15, Oxley Holdings executive director and deputy CEO Eric Low See Ching acquired 100,000 shares of the company at 17.1 cents per share.

 
Low maintains a 28.13 per cent direct interest in the firm and is responsible for the operation of the group including sales and marketing, project development, business development and financial management. He also assists the CEO in charting and executing strategic plans.

 Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/buybacks-surge-mapletrees-chua-tiow-chye-adds-to-mit-stake"> read </a>the original version.
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    Share Buybacks


FOR the 5 trading sessions that spanned Jun 10 to 16, the Straits Times Index (STI) declined 3.5 per cent, with the FTSE China A50 Index gaining 1.2 per cent, the Hang Seng Index falling 4.5 per cent and the FTSE Bursa Malaysia KLCI sliding 2.2 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$166 million of net outflow, following the S$52 million of net outflow for the preceding 5 sessions. UOB, OCBC, Singapore Airlines, Thai Beverage and Keppel DC Reit led the net institutional outflows for the 5 sessions through to Jun 16.

 Share buybacks

 
There were 26 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 16, with a total consideration of S$122.8 million, more than doubling the previous week’s consideration tally. Wilmar International and Keppel Corporation led the consideration tally, buying back shares at average prices of S$4.08, and S$6.75 respectively.

 

Director and substantial shareholder transactions

 
The 5 trading sessions saw over 100 changes to director interests and substantial shareholdings filed for close to 50 primary-listed stocks. This included 19 company director acquisitions with 2 disposals filed, while substantial shareholders filed 15 acquisitions and 12 disposals.

 

AEM Holdings

 
The Employees Provident Fund Board’s (EPF) deemed interest in AEM Holdings (AEM) has once again crossed above the 5.00 per cent substantial shareholder threshold.  The EPF had reduced its deemed interest in AEM below the 5.00 per cent threshold on Feb 4 to 4.87 per cent when it sold some shares, but on Jun 9, it bought shares again and raised its deemed interest to 5.05 per cent.  EPF’s latest purchase of 550,000 shares at S$4.39 per share, is at a lower average price than the S$4.53 per share it had received when it sold shares and reduced its deemed interest in AEM to below the substantial shareholder threshold in February.

 

On Jun 16, AEM announced that it would create more than 300 additional jobs with the expansion of its Singapore, Malaysian and US operations. AEM’s Penang expansion will include an R&amp;D lab that will enable it to boost its R&amp;D capabilities, while it will also double its headcount in Malaysia to support the expansion, including new roles for technicians, engineers, customer support group, and supply chain management. AEM is also a Gold Sponsor and the sole sponsor of the SEMICON University Program at SEMICON SEA 2022, scheduled this week in Penang.

 

Separately, with effect from Jul 1, Andre Andonian will join the board of AEM as an independent director. At McKinsey &amp; Company, Andonian serves as a member of the global board, senior partner for the Singapore office, chairman of Japan and the managing partner for Korea. Back on May 5, AEM reported its highest quarterly revenue in its history at S$261.9 million for Q1 2022 (ended Mar 31), a 226.4 per cent year-on-year increase, while upwardly revising its FY22 revenue guidance to between S$700 million and S$750 million.

 

Mapletree Industrial Trust 

 
Between Jun 10 and 13, Mapletree Industrial Trust Management non-executive director Chua Tiow Chye acquired 250,000 units of Mapletree Industrial Trust (MIT) at an average price of S$2.49 per unit.

 
With a consideration of S$621,382, this increased his deemed interest from 0.05 per cent to 0.06 per cent. It followed his acquisition of 200,000 units at S$2.49 per unit on Feb 7 and 200,000 units at S$2.60 per unit on Jan 26.

 
Chua is also the deputy group CEO of Mapletree Investments, the sponsor of MIT. He focuses on driving the sponsor’s strategic initiatives including expanding and directing the sponsor’s international real estate investments and developments. He also directly oversees the sponsor’s global lodging sector as well as the private capital management function.

 
For the FY22 (ended Mar 31), MIT reported its gross revenue and net property income increased 36.4 per cent and 34.5 per cent year on year to S$610.1 million and S$472.0 million respectively. MIT owns 141 properties, comprising 85 properties in Singapore and 56 properties in North America, which includes 13 data centres in North America held through the joint venture with the sponsor.

 Uni-Asia Group

 
On Jun 13, Uni-Asia Group executive chairman Michio Tanamoto acquired 150,000 shares of the company for a consideration of S$156,000. At an average price of S$1.04 per share, this increased his total interest in the company from 3.24 per cent to 3.44 per cent. This closely followed his acquisition of 50,000 shares at S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 The Straits Trading Company

 
On Jun 13, The Straits Trading Company independent and non-executive director Tan Tiong Cheng acquired 30,000 shares of the company for a consideration of S$90,300, at an average price of S$3.01 per share. This increased his direct interest in the conglomerate-investment company from 0.03 per cent to 0.04 per cent. He is also an independent and non-executive director of UOL Group, the lead independent director of Heeton Holdings, and a non-executive independent director of Amara Holdings.

 
The same session also saw Straits Trading Company independent and non-executive director Chua Tian Chu acquire 7,000 shares of the company at S$3.00 per share.

 
Chua last acquired shares in the company in March, and both directors acquired shares in the company in January. 

 GKE Corporation

 
On Jun 15, GKE Corporation executive director and CEO Neo Cheow Hui acquired 500,000 shares of the company, for a consideration of S$52,000 at 10.4 cents per share. This increased his total interest in the provider of integrated warehousing and logistics solutions from 3.60 per cent to 3.67 per cent.

 
Neo has extensive experience in the warehousing and logistics industry which has played a pivotal role in developing high level strategies for the group and making major corporate investments over the last 20 years.

 Hong Fok Corporation

 
On Jun 10, Hong Fok Corporation executive director and joint CEO Cheong Sim Eng acquired 43,000 shares of the company, for a consideration of S$41,925 at 98.0 cents per share. Cheong maintains a 20.27 total interest in the property developer.

 
He is principally involved in the group’s overall operations and management, with greater emphasis in Singapore and he has over 37 years of experience in the property development business.

 Grand Venture Technology

 
Between Jun 13 and 15, Grand Venture Technology executive chairman Ricky Lee Tiam Nam acquired 50,000 shares of the company at an average price of 76.8 cents per share. With a consideration of S$38,375, this increased his direct interest in the innovative precision manufacturer from 15.33 per cent to 15.34 per cent. 

 
Responsible for the overall strategic direction and development of the group, Lee was one of the founding directors of the company.

 
He has over 38 years of experience in the manufacturing, assembly/servicing and precision engineering industries, beginning his career in 1982 as a machinist in Pan-World Precision Engineering.

 
On Jun 15, GVT executive director and CEO Julian Ng Wai Yuen also acquired 10,000 shares at an average price of 76.5 cents per share. This increased his direct interest in the company from 3.54 per cent to 3.55 per cent. Ng has more than 20 years of experience in the manufacturing and precision engineering industries.

 
In early May, GVT reported 19.5 per cent year-on-year growth in Ebitda and 8.9 per cent growth in net profit after tax for Q1 FY2022 (ended Mar 31), on the back of a 41.0 per cent revenue increase from S$23.0 million in Q1 FY2021 to S$32.5 million in Q1 FY2022.

 
Lee noted with the results that robust demand from the semiconductor industry saw GVT make good progress in its discussions with potential customers engaged in the manufacture of metrology and inspection, etching, and wafer deposition equipment. Lee added that when fully onboarded, these customers are expected to be the key drivers for the front-end semiconductor activities of GVT in the near future. In Q1 FY2022, the semiconductor sector contributed 67.2 per cent to the group’s total revenue, comparable with the 71.1 per cent contribution in FY21 and 68.7 per cent contribution in 2020.

 Oxley Holdings

 
Between Jun 14 and 15, Oxley Holdings executive director and deputy CEO Eric Low See Ching acquired 100,000 shares of the company at 17.1 cents per share.

 
Low maintains a 28.13 per cent direct interest in the firm and is responsible for the operation of the group including sales and marketing, project development, business development and financial management. He also assists the CEO in charting and executing strategic plans.

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



Buybacks surge, Mapletree’s Chua Tiow Chye adds to MIT stake

Digilife Technologies Limited / Equity Bottom-Up

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FOR the 5 trading sessions that spanned Jun 3 to 9, the Straits Times Index (STI) declined 0.5 per cent, with the FTSE China A50 Index adding 3.0 per cent, the Hang Seng Index gaining 4.5 per cent and the FTSE Bursa Malaysia KLCI falling 1.9 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$52 million of net outflow, following the S$102 million of net outflow for the preceding 5 sessions. UOB, Singtel, DBS, Yangzijiang Financial Holding and Thai Beverage led the net institutional outflows for the 5 sessions through to Jun 9.

 Share buybacks

 
There were 23 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 9, with a total consideration of S$53,390,997, a weekly consideration tally similar to the preceding 3 weeks’.

Keppel Corporation again led the consideration tally with 3,035,800 shares bought at an average price of S$6.89 per share. This brought the total number of shares purchased on its current mandate to 1.19 per cent of its issued shares (excluding treasury shares).

 
On Jun 8, Yangzijiang Financial Holding announced the establishment of a S$200 million share buyback programme pursuant to the share buyback mandate granted by shareholders at the EGM held the same day. The company also noted that purpose of the programme is to increase shareholder value and improve the return of equity of the group.

 Director and substantial shareholder transactions

 
The 5 trading sessions saw close 90 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 8 company director acquisitions with two disposals filed, while substantial shareholders filed 11 acquisitions and 8 disposals.

Back on Jun 2, Olam Group executive director, co-founder and group CEO Sunny Verghese acquired 500,000 shares of the company at an average price of S$1.56 per share, with a consideration of S$780,400, increasing his direct interest in Olam Group from 4.29 per cent to 4.31 per cent.

 
Also on Jun 2, Digilife Technologies chairman and non-independent non-executive director Bhupendra Kumar Modi increased his total interest in the company from 52.38 per cent to 53.99 per cent. In a share purchase agreement dated Jun 2, Spice Bulls acquired 217,105 Digilife Technologies shares from Maneesh Tripathi for a consideration of S$577,500, at S$2.66 per share. Spice Bulls is 100 per cent held by Smart Co Holding, which in turn is 100 per cent held by Modi. Tripathi resigned as non-independent non-executive director of Digilife Technologies effective May 31.

 Yangzijiang Shipbuilding Holdings

 
On Jun 6, Yangzijiang Shipbuilding Holdings substantial shareholder T. Rowe Price Associates, increased its deemed interest in the company to above the 8.0 per cent threshold. Acquiring 5,819,100 shares in the Jiangsu-based shipbuilder, at an average price of 99.9 cents per share increased its deemed interest from 7.92 per cent to 8.06 per cent. Previously T. Rowe Price Associates increased its deemed interest above the 7.00 per cent threshold on Dec 7 and above the 6.00 per cent threshold on Apr 8, 2021.

 
According to data from Bloomberg, its deemed interest in Yangzijiang Shipbuilding Holdings is spread across multiple portfolios such as the T Rowe Price Emerging Markets Discovery Stock Fund, T Rowe Price International Discovery Fund and T Rowe Price International Value Equity Fund.

 
In 2021, Yangzijiang Shipbuilding Holdings secured record order wins for 124 vessels with a total contract value of US$7.41 billion. Apart from achieving the group’s highest order wins since its listing on SGX in 2021, the company made the strategic decision to focus on new-build profitability and prioritised on building containerships and clean energy vessels. As of the end 2021, Yangzijiang Shipbuilding Holdings had an existing orderbook of US$8.50 billion for 157 vessels, with containerships accounting for US$7.08 billion or 83 per cent of total existing contract value. Yangzijiang Shipbuilding Holdings was the STI’s strongest performer in 2021 and has ranked as the second strongest STI constituent after Jardine Cycle &amp; Carriage in the 2022 year through to Jun 9. 

 Uni-Asia Group

 
On Jun 9, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares of the company for a consideration of S$54,250. At an average price of S$1.09 per share, this increased his total interest in the company from 3.18 per cent to 3.24 per cent.

 
His preceding acquisitions were on Aug 20, with 30,000 shares acquired at S$1.05 per share and May 21, 2021, with 50,000 shares acquired at 66.5 cents per share.

 
Tanamoto was appointed executive chairman of the Uni-Asia Group in April 2020. He was previously appointed as chairman and CEO in April 2014, before he relinquished his position as CEO in 2020 as part of the group’s succession planning. He is one of the 4 founders who established the company in 1997 and has been a director since then. He has close to 40 years of experience in financial sector, having been based in Japan, Hong Kong and Singapore.

 
In April, Tanamoto noted that as a producer of alternative investment opportunities, Uni-Asia Group’s ongoing mission is to constantly create new investment products and develop new investors sources to increase its assets under management as well and strengthen its investment portfolio to achieve sustainable long-term growth. With 2022 also marking the group’s 25th anniversary, Tanamoto added that the group’s balance sheet is now stronger than before, following its deleveraging strategy, with a strong cashflow, as a result of the strong shipping market.

 Megachem

 
On Jun 3, Megachem managing director Sidney Chew Choon Tee acquired 93,000 shares of the company at 46.5 cents per share. With a consideration of S$43,245, this increased his total interest in the one-stop specialty chemical solutions provider from 35.65 per cent to 35.72 per cent. His preceeding acquisitions were on Apr 13 with 200 shares acquired at 45.5 cents per share and between Mar 15 and 16, with 20,000 shares acquired at 45.0 cents per share. 

 
The company reported back in February that its net profit after tax in FY21 (ended Dec 31) increased 52.0 per cent to S$8.0 million on the back of a 32.0 per cent growth in revenue to S$138.9 million. Chew noted that the group achieved a new record in revenue, as business sentiments improved, and demand recovered, with higher sales volumes and chemical prices supporting a rebound in revenue in FY21 to better than pre-Covid levels.

 
In response to a question on the sensitivity of revenue to oil prices in an online Q&amp;A with Investors in March, Megachem management noted that demand for specialty chemicals had been less sensitive to price fluctuations. The management team reasoned that oil prices had staged a remarkable rebound since the later part of 2020 which had pushed freight rates and chemical prices higher. However, the team noted that specialty chemicals, though not immune to oil price fluctuations, are less susceptible in comparison to bulk commodity chemicals, since they are a more downstream product and usage in the finished product is smaller.

 GSH Corporation

 
Between Jun 2 and 8, GSH Corporation executive chairman Sam Goi Seng Hui acquired 195,200 shares of the company at an average price of 16.7 cents per share, with a consideration of S$32,668. This increased his total interest in the property developer, hotel and resort operator from 63.62 per cent to 63.63 per cent. Goi’s preceding acquisition was on Oct 8, with 99,800 shares acquired at 16.8 cents per share. He has gradually increased his total interest in GSH Corporation from 47.97 per cent in July 2015. Goi was appointed to the GSH Corporation board in July 2012.

 
He is also the executive chairman of Tee Yih Jia Group, in addition to SGX-listed companies Hanwell Holdings and Tat Seng Packaging Group.  Goi also serves on the board of Envictus International Holdings, JB Foods and Tung Lok Restaurants (2000).  For its FY21 (ended Dec 31), GSH posted an attributable net loss of S$21.0 million, which was a decline of 49 per cent from an attributable net loss of S$14.1 million in FY20, with group revenue declining 20 per cent from S$120.2 million in FY20 to S$95.8 million in FY21.

 
GSH Corporation is a growing property developer in South-east Asia, with 5 properties under development in Malaysia and China. It also owns and operates the Sutera Harbour Resort in Kota Kinabalu, comprising 2 5-star hotels, a 104-berth marina and a 27-hole championship golf course, and the Sutera@Mantanani Resort on the Mantanani Islands in Sabah. In FY21, 67 per cent of GSH Corporation’s revenue was reported to Malaysia, with the balance reported to China.

 Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/t-rowe-price-increases-its-yzj-shipbuilding-interest-to-above-8"> read </a>the original version.
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    Share Buybacks


FOR the 5 trading sessions that spanned Jun 3 to 9, the Straits Times Index (STI) declined 0.5 per cent, with the FTSE China A50 Index adding 3.0 per cent, the Hang Seng Index gaining 4.5 per cent and the FTSE Bursa Malaysia KLCI falling 1.9 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$52 million of net outflow, following the S$102 million of net outflow for the preceding 5 sessions. UOB, Singtel, DBS, Yangzijiang Financial Holding and Thai Beverage led the net institutional outflows for the 5 sessions through to Jun 9.

 Share buybacks

 
There were 23 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 9, with a total consideration of S$53,390,997, a weekly consideration tally similar to the preceding 3 weeks’.

Keppel Corporation again led the consideration tally with 3,035,800 shares bought at an average price of S$6.89 per share. This brought the total number of shares purchased on its current mandate to 1.19 per cent of its issued shares (excluding treasury shares).

 
On Jun 8, Yangzijiang Financial Holding announced the establishment of a S$200 million share buyback programme pursuant to the share buyback mandate granted by shareholders at the EGM held the same day. The company also noted that purpose of the programme is to increase shareholder value and improve the return of equity of the group.

 Director and substantial shareholder transactions

 
The 5 trading sessions saw close 90 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 8 company director acquisitions with two disposals filed, while substantial shareholders filed 11 acquisitions and 8 disposals.

Back on Jun 2, Olam Group executive director, co-founder and group CEO Sunny Verghese acquired 500,000 shares of the company at an average price of S$1.56 per share, with a consideration of S$780,400, increasing his direct interest in Olam Group from 4.29 per cent to 4.31 per cent.

 
Also on Jun 2, Digilife Technologies chairman and non-independent non-executive director Bhupendra Kumar Modi increased his total interest in the company from 52.38 per cent to 53.99 per cent. In a share purchase agreement dated Jun 2, Spice Bulls acquired 217,105 Digilife Technologies shares from Maneesh Tripathi for a consideration of S$577,500, at S$2.66 per share. Spice Bulls is 100 per cent held by Smart Co Holding, which in turn is 100 per cent held by Modi. Tripathi resigned as non-independent non-executive director of Digilife Technologies effective May 31.

 Yangzijiang Shipbuilding Holdings

 
On Jun 6, Yangzijiang Shipbuilding Holdings substantial shareholder T. Rowe Price Associates, increased its deemed interest in the company to above the 8.0 per cent threshold. Acquiring 5,819,100 shares in the Jiangsu-based shipbuilder, at an average price of 99.9 cents per share increased its deemed interest from 7.92 per cent to 8.06 per cent. Previously T. Rowe Price Associates increased its deemed interest above the 7.00 per cent threshold on Dec 7 and above the 6.00 per cent threshold on Apr 8, 2021.

 
According to data from Bloomberg, its deemed interest in Yangzijiang Shipbuilding Holdings is spread across multiple portfolios such as the T Rowe Price Emerging Markets Discovery Stock Fund, T Rowe Price International Discovery Fund and T Rowe Price International Value Equity Fund.

 
In 2021, Yangzijiang Shipbuilding Holdings secured record order wins for 124 vessels with a total contract value of US$7.41 billion. Apart from achieving the group’s highest order wins since its listing on SGX in 2021, the company made the strategic decision to focus on new-build profitability and prioritised on building containerships and clean energy vessels. As of the end 2021, Yangzijiang Shipbuilding Holdings had an existing orderbook of US$8.50 billion for 157 vessels, with containerships accounting for US$7.08 billion or 83 per cent of total existing contract value. Yangzijiang Shipbuilding Holdings was the STI’s strongest performer in 2021 and has ranked as the second strongest STI constituent after Jardine Cycle &amp; Carriage in the 2022 year through to Jun 9. 

 Uni-Asia Group

 
On Jun 9, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares of the company for a consideration of S$54,250. At an average price of S$1.09 per share, this increased his total interest in the company from 3.18 per cent to 3.24 per cent.

 
His preceding acquisitions were on Aug 20, with 30,000 shares acquired at S$1.05 per share and May 21, 2021, with 50,000 shares acquired at 66.5 cents per share.

 
Tanamoto was appointed executive chairman of the Uni-Asia Group in April 2020. He was previously appointed as chairman and CEO in April 2014, before he relinquished his position as CEO in 2020 as part of the group’s succession planning. He is one of the 4 founders who established the company in 1997 and has been a director since then. He has close to 40 years of experience in financial sector, having been based in Japan, Hong Kong and Singapore.

 
In April, Tanamoto noted that as a producer of alternative investment opportunities, Uni-Asia Group’s ongoing mission is to constantly create new investment products and develop new investors sources to increase its assets under management as well and strengthen its investment portfolio to achieve sustainable long-term growth. With 2022 also marking the group’s 25th anniversary, Tanamoto added that the group’s balance sheet is now stronger than before, following its deleveraging strategy, with a strong cashflow, as a result of the strong shipping market.

 Megachem

 
On Jun 3, Megachem managing director Sidney Chew Choon Tee acquired 93,000 shares of the company at 46.5 cents per share. With a consideration of S$43,245, this increased his total interest in the one-stop specialty chemical solutions provider from 35.65 per cent to 35.72 per cent. His preceeding acquisitions were on Apr 13 with 200 shares acquired at 45.5 cents per share and between Mar 15 and 16, with 20,000 shares acquired at 45.0 cents per share. 

 
The company reported back in February that its net profit after tax in FY21 (ended Dec 31) increased 52.0 per cent to S$8.0 million on the back of a 32.0 per cent growth in revenue to S$138.9 million. Chew noted that the group achieved a new record in revenue, as business sentiments improved, and demand recovered, with higher sales volumes and chemical prices supporting a rebound in revenue in FY21 to better than pre-Covid levels.

 
In response to a question on the sensitivity of revenue to oil prices in an online Q&amp;A with Investors in March, Megachem management noted that demand for specialty chemicals had been less sensitive to price fluctuations. The management team reasoned that oil prices had staged a remarkable rebound since the later part of 2020 which had pushed freight rates and chemical prices higher. However, the team noted that specialty chemicals, though not immune to oil price fluctuations, are less susceptible in comparison to bulk commodity chemicals, since they are a more downstream product and usage in the finished product is smaller.

 GSH Corporation

 
Between Jun 2 and 8, GSH Corporation executive chairman Sam Goi Seng Hui acquired 195,200 shares of the company at an average price of 16.7 cents per share, with a consideration of S$32,668. This increased his total interest in the property developer, hotel and resort operator from 63.62 per cent to 63.63 per cent. Goi’s preceding acquisition was on Oct 8, with 99,800 shares acquired at 16.8 cents per share. He has gradually increased his total interest in GSH Corporation from 47.97 per cent in July 2015. Goi was appointed to the GSH Corporation board in July 2012.

 
He is also the executive chairman of Tee Yih Jia Group, in addition to SGX-listed companies Hanwell Holdings and Tat Seng Packaging Group.  Goi also serves on the board of Envictus International Holdings, JB Foods and Tung Lok Restaurants (2000).  For its FY21 (ended Dec 31), GSH posted an attributable net loss of S$21.0 million, which was a decline of 49 per cent from an attributable net loss of S$14.1 million in FY20, with group revenue declining 20 per cent from S$120.2 million in FY20 to S$95.8 million in FY21.

 
GSH Corporation is a growing property developer in South-east Asia, with 5 properties under development in Malaysia and China. It also owns and operates the Sutera Harbour Resort in Kota Kinabalu, comprising 2 5-star hotels, a 104-berth marina and a 27-hole championship golf course, and the Sutera@Mantanani Resort on the Mantanani Islands in Sabah. In FY21, 67 per cent of GSH Corporation’s revenue was reported to Malaysia, with the balance reported to China.

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



T Rowe Price increases its YZJ Shipbuilding interest to above 8%






FOR the 5 trading sessions that spanned May 27 to Jun 2, the Straits Times Index (STI) gained 0.6 per cent, with the FTSE China A50 Index adding 3.6 per cent, the Hang Seng Index rising 4.6 per cent and the FTSE Bursa Malaysia KLCI up 0.5 per cent. 

Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$102 million of net outflow.

This followed the S$109 million of net outflow for the preceding 5 sessions.

DBS, Singtel, OCBC, SATS and Yangzijiang Financial Holding led the net institutional outflows for the 5 sessions through to Jun 2.

Share buybacks

There were 21 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 2, with a total consideration of S$63,996,671, a pace similar to the preceding 2 weeks’.

Keppel Corporation led the consideration tally with 2,904,000 shares bought at an average price of S$6.84 per share.

This brought the total number of shares purchased on its current mandate to 1.02 per cent of its issued shares (excluding treasury shares).

The consideration tally does not include the Silverlake Axis buyback with an off-market purchase on an equal access scheme, booked on May 27, with Silverlake Axis buying 170,230,988 shares off-market for a consideration of S$56,176,226 at S$0.33 per share.

Director and substantial shareholder transactions

The 5 trading sessions saw more than 90 changes to director interests and substantial shareholdings filed for 40 primary-listed stocks.

This included 14 company director acquisitions with 2 disposals filed, while substantial shareholders filed 7 acquisitions and 4 disposals.

Olam Group

Between May 27 and Jun 1, Olam Group executive director, co-founder and group CEO Sunny Verghese acquired 1.5 million shares of the company at an average price of S$1.51 per share.

With a consideration of S$2,269,300, this increased his direct interest in the group from 4.26 per cent to 4.29 per cent. 

Verghese noted in April that in 2021, the group had a banner year despite the continued impacts from Covid-19 and the adverse macro-economic and geopolitical environment, with its strongest reported and operational PATMI since it was founded.

For 2021, the group reported that its PATMI grew by 179 per cent to S$686 million while operational PATMI grew by 42 per cent to S$961 million.

Despite global geopolitical and economic challenges, Olam Group also reported its Q1 2022 Ebitda increased 54 per cent over last year.

In January 2020, Olam announced a transformational reorganisation plan by splitting the group’s diverse portfolio of businesses into 3 independent operating groups, to maximise the long-term value of the group.

Olam is in the process of executing the last step which includes the potential initial public offering and demerger of Olam Food Ingredients.

Far East Group

On May 30, Far East Group executive director and CEO Steven Loh Mun Yew acquired 619,000 shares of the company at 11.5 cents per share.

With a consideration of S$71,185, this increased his total interest in the company from 60.59 per cent to 61.15 per cent.

Loh was appointed to the board of Far East Group in 1990 and has more than 30 years of experience in the heating, ventilation, air-conditioning and refrigeration (HVAC&amp;R) industry.

He is responsible for the formulation and execution of the group’s business strategies, strategic directions and expansion plans, as well as managing its overall business development and financial performance.

In 2021, Far East Group’s revenue improved by S$28.5 million or 52.3 per cent to S$83.1 million, from S$54.6 million in 2020, due to the recovery of all business segments.

This saw the group report an attributable net loss of S$32,000 in 2021, compared to a loss of S$7.2 million in 2020.

Loh noted in March that the commercial and light industrial (refrigeration) segment remained the group’s largest revenue contributor, accounting for 64.7 per cent of its 2021 top line.

He added that the residential and commercial (air-conditioning) segment accounted for 34.0 per cent of total revenue.

The oil, marine and gas (refrigeration and air-conditioning) segment accounted for the remaining 1.3 per cent.

Uni-Asia Group

On Jun 1, Uni-Asia Group executive director and CEO Kenji Fukuyado acquired 70,000 shares of the company for a consideration of S$74,679.

At S$1.07 per share, this took his total interest in Uni-Asia Group from 1.78 per cent to 1.87 per cent.

His preceding acquisition was on Mar 16, with 50,000 shares acquired at S$1.12 per share, and prior to that, he acquired 50,000 shares at 63.3 cents per share back in December 2020.

Fukuyado was appointed Uni-Asia Group CEO in April 2020.

He joined the group in 2001 and has over 30 years of experience in the finance industry, including structured finance such as tax lease, asset finance, loan syndication, corporate finance, and asset management.

In 2021, Uni-Asia Group achieved a net profit of US$18.0 million, the highest profit level in the history of the group. 

Fukuyado also noted in April that in the longer term, the alternative investment company is committed to building up a stronger balance sheet.

As at the end of 2021, Uni-Asia Group had reduced its total borrowings to US$83.8 million.

This was down from US$114.0 million as at the end of 2020, bringing the debt-to-equity ratio to less than 1.

LHT Holdings

On May 26, LHT Holdings managing director, Yap Mui Kee, acquired 45,800 shares of the company for a consideration of S$32,518.

At an average price of 71.0 cents per share, this took her direct interest in the manufacturer of high-quality wooden pallets, boxes, and crates from 14.99 per cent to 15.07 per cent.

Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021.

She has been an executive director of LHT Holdings since January 1988 and is in charge of the sales and marketing functions of the group.

Livingstone Health Holdings

On May 31, Livingstone Health Holdings executive director and CEO, Wilson Tay, acquired 160,100 shares of the company for a consideration of S$22,244.

At an average price of 13.9 cents per share, this increased his total interest in the multidisciplinary healthcare group from 58.43 per cent to 58.47 per cent.

Dr Tay specialises in anaesthesiology with 15 years of clinical experience, and he is responsible for the overall strategic direction and development of the group.

Hafary Holdings

On May 30, Hafary Holdings non-independent non-executive director Eric Low See Ching acquired 75,000 shares of the company at 19.2 cents per share.

With a consideration of S$14,424, this increased his direct interest in the firm from 25.43 per cent to 25.44 per cent.

His preceding acquisition was on Apr 13, with 49,500 shares acquired at 19.5 cents per share.

Low was appointed non-independent non-executive director of Hafary Holdings in January 2014.

Prior to this appointment, he served on the board as executive director and in the company as CEO.

Samudera Shipping Line

On May 27, Samudera Shipping Line executive director and CEO Bani Maulana Mulia acquired 6,700 shares of the company at 74.5 cents per share. He maintains a 0.61 per cent direct interest in Samudera Shipping Line, which is primarily engaged in container shipping transportation of cargo in the Asian region.

Bani took the helm as CEO in September 2020 bringing with him nearly 2 decades of industry experience, having started his career in 2001 as a finance officer in Samudera Indonesia.

In 2021, Samudera Shipping Line delivered a significant jump in net profit after tax to US$130.0 million, compared to US$7.3 million in 2020.

Bani said that the group closed the year with a stronger balance sheet with total assets as at the end of 2021 rising to US$571.5 million, from US$342.8 million at the end of 2020.

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



Olam, Far East Group and Uni-Asia CEOs build stakes

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<ul>
<li>Singapore’s 1Q22 GDP expanded 3.7% YoY, continuing the above trend momentum seen in 2021 with 7.6% growth. The GDP forecast for the full 2022 year is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. Manufacturing was again a key driver, expanding 7.1% YoY in 1Q22, extending 15.5% growth in 4Q21.</li>
</ul>
<ul>
<li>The STI has gained 3.4% in the 2022 YTD, with reinvested dividends boosting the total return to 5.5%. This has coincided with 30 constituents booking S$538 million of net institutional inflow. Singtel which reported FY22 results on Friday led the net institutional inflows of all SGX-listed stocks in the 2022 YTD, with S$666 million of net buying. </li>
</ul>
<ul>
<li>As many as 11 of the STI stocks have generated double digit percentage gains in the 2022 YTD. These stocks are Sembcorp Industries (44%), Jardine C&amp;C (43%), Yangzijiang Shipbuilding (40%), Keppel Corp (37%), City Dev (25%), CapitaLand Invest (19%), Singtel (16%), SATS (16%), ST Engineering (11%), UOB (11%) and Singapore Airlines (10%).</li>
</ul>
 

 

The STI has generated a 5.5% total return in the 2022 YTD, outpacing the FTSE Developed Index which has generated an 11.0% decline in total return in SGD terms. With average total returns of 4.6%, the trio of DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank have had the most impact on the STI performance due to their leading, heavy weightage. United Overseas Bank has led the trio in the 2022 YTD, with double-digit total returns of 11.4%. Globally, banks have seen just one-third of the declines of the technology sector, with index performances significantly influenced by their technology stock weights.

Asides from United Overseas Bank, there have been another 10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022. These 10 stocks, represent as many as seven sectors and are tabled below.
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Globally, Energy and Utilities stocks have been the strongest sectors for the 2022 YTD, while Indonesia has been among the strongest emerging stock markets in the 2022 YTD. This has coincided with Sembcorp Industries and Jardine Cycle &amp; Carriage leading the STI over the past 21 weeks. Meanwhile the regional re-openings, have also coincided with City Developments, CapitaLand Investment, SATS and Singapore Airlines posting double digit percentage total returns in the 2022 YTD. 

On Friday, Singapore Telecommunications reported its FY22 (ended 31 Mar) underlying net profit improved 11% YoY to S$1.92 billion, mainly lifted by Bharti Airtel’s resilient turnaround. Singapore Telecommunications is pursuing an ongoing strategic reset to develop new growth engines in ICT and digital services aiming transform NCS into an Asian B2B digital services champion, and NCS-originated revenue was up a record 9% in FY22 as NCS has continued to diversify its revenue streams, with Digital, Cloud, Platforms and Cyber revenue now contributing 49% of total operating revenue, up from 41% last year.

 

Singapore GDP forecast to grow 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range.

Last week, Singapore’s 1Q22 GDP was <a href="https://www.singstat.gov.sg/gdp?force_isolation=true">reported</a> to grow 3.7% YoY, continuing the above trend momentum of 2021 at 7.6% YoY growth.

<ul>
<li>The GDP forecast for 2022 is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. The manufacturing sector expanded 7.1% YoY in 1Q22, extending the 15.5% growth in 4Q21, while construction grew 2.1% YoY, easing from the 2.9% YoY growth in 4Q21. Services Producing industries expanded 4.2% YoY, similar to the 4Q21 pace of 4.4% YoY growth, and led by growth in the real estate, information and communications and professional services segments.</li>
</ul>
<ul>
<li>For professional services the GDP report noted that “the rollout of the Vaccinated Travel Framework, alongside the easing of border restrictions in regional economies, is likely to boost the growth of the professional services sector as firms in segments like consultancy and legal can now better engage their overseas clients. Similarly, air travel and visitor arrivals are expected to pick up more quickly than earlier projected, thereby accelerating the recovery of aviation- and tourism-related sectors like air transport and arts, entertainment &amp; recreation”.</li>
</ul>
<ul>
<li>On a cautionary note, the report also maintained the external environment continues to be a challenge with the Russia-Ukraine conflict, global supply disruptions, monetary policy tightening and continued impact of COVID, and thus the growth outlook for some outward-oriented sectors in the Singapore economy has weakened. For instance the report noted that “as China is a key market for petroleum and chemicals products from Singapore, its economic slowdown is likely to adversely affect the growth prospects of Singapore’s chemicals cluster and the fuel &amp; chemicals segment of the wholesale trade sector”.</li>
</ul>
 

Singapore’s April Industrial Production Up 6.2% YoY

The Singapore 1Q22 GDP report noted last week that “the electronics cluster is expected to expand more strongly than earlier projected, bolstered by robust global demand for semiconductors from the 5G and automotive markets, as well as cloud services and data centres”. Last week, Singapore’s April Industrial Production was <a href="https://www.edb.gov.sg/en/about-edb/media-releases-publications/monthly-manufacturing-performance.html">reported</a> to grow 6.2% YoY, with transport engineering and electronics growing 17.2% YoY and 10.4% respectively. This means Singapore’s industrial production has gained ~7% in the first four months of 2022, following the ~13% growth of 2021.  

 

The STI includes two Singapore-based manufacturers – Venture Corporation and ST Engineering.

<ul>
<li>
Venture Corporation has declined 2.0% in the 2022 YTD, after a similar 1.9% decline in total return 2021. On 29 April, Venture reported its growth momentum continued from 2021, with a 30% YoY increase in 1Q22 revenue to S$889M on robust demand from customers in the Lifestyle &amp; Wellness, Advanced Payment Systems, Advanced Industrial and Instrumentation, Test and Measurement technology domains. Additionally, the company highlighted that several iniatives from its R&amp;D Labs have enabled it to mitigate supply chain disruptions and expand its capabilities to fulfil more orders.</li>
</ul>
<ul>
<li>
ST Engineering has generated an 11.5% total return in the 2022 YTD after a 2.3% gain in 2021. On 13 May, ST Engineering highlighted it had secured S$2.4B in new contracts in 1Q22, with an overall robust order book of S$21.3B, incl. $1.6B from TransCore and S$5.8B expected to be delivered in the remaining months of 2022. Management also flagged alignment with Digitalisation with the Cloud, AI Analytics, Cyber business to triple to &gt;S$500m by 2026.</li>
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Singapore’s 1Q22 GDP expanded 3.7% YoY, continuing the above trend momentum seen in 2021 with 7.6% growth. The GDP forecast for the full 2022 year is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. Manufacturing was again a key driver, expanding 7.1% YoY in 1Q22, extending 15.5% growth in 4Q21.


The STI has gained 3.4% in the 2022 YTD, with reinvested dividends boosting the total return to 5.5%. This has coincided with 30 constituents booking S$538 million of net institutional inflow. Singtel which reported FY22 results on Friday led the net institutional inflows of all SGX-listed stocks in the 2022 YTD, with S$666 million of net buying. 


As many as 11 of the STI stocks have generated double digit percentage gains in the 2022 YTD. These stocks are Sembcorp Industries (44%), Jardine C&amp;C (43%), Yangzijiang Shipbuilding (40%), Keppel Corp (37%), City Dev (25%), CapitaLand Invest (19%), Singtel (16%), SATS (16%), ST Engineering (11%), UOB (11%) and Singapore Airlines (10%).

 

 

The STI has generated a 5.5% total return in the 2022 YTD, outpacing the FTSE Developed Index which has generated an 11.0% decline in total return in SGD terms. With average total returns of 4.6%, the trio of DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank have had the most impact on the STI performance due to their leading, heavy weightage. United Overseas Bank has led the trio in the 2022 YTD, with double-digit total returns of 11.4%. Globally, banks have seen just one-third of the declines of the technology sector, with index performances significantly influenced by their technology stock weights.

Asides from United Overseas Bank, there have been another 10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022. These 10 stocks, represent as many as seven sectors and are tabled below.



      
    
    10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022


Globally, Energy and Utilities stocks have been the strongest sectors for the 2022 YTD, while Indonesia has been among the strongest emerging stock markets in the 2022 YTD. This has coincided with Sembcorp Industries and Jardine Cycle &amp; Carriage leading the STI over the past 21 weeks. Meanwhile the regional re-openings, have also coincided with City Developments, CapitaLand Investment, SATS and Singapore Airlines posting double digit percentage total returns in the 2022 YTD. 

On Friday, Singapore Telecommunications reported its FY22 (ended 31 Mar) underlying net profit improved 11% YoY to S$1.92 billion, mainly lifted by Bharti Airtel’s resilient turnaround. Singapore Telecommunications is pursuing an ongoing strategic reset to develop new growth engines in ICT and digital services aiming transform NCS into an Asian B2B digital services champion, and NCS-originated revenue was up a record 9% in FY22 as NCS has continued to diversify its revenue streams, with Digital, Cloud, Platforms and Cyber revenue now contributing 49% of total operating revenue, up from 41% last year.

 

Singapore GDP forecast to grow 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range.

Last week, Singapore’s 1Q22 GDP was reported to grow 3.7% YoY, continuing the above trend momentum of 2021 at 7.6% YoY growth.


The GDP forecast for 2022 is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. The manufacturing sector expanded 7.1% YoY in 1Q22, extending the 15.5% growth in 4Q21, while construction grew 2.1% YoY, easing from the 2.9% YoY growth in 4Q21. Services Producing industries expanded 4.2% YoY, similar to the 4Q21 pace of 4.4% YoY growth, and led by growth in the real estate, information and communications and professional services segments.


For professional services the GDP report noted that “the rollout of the Vaccinated Travel Framework, alongside the easing of border restrictions in regional economies, is likely to boost the growth of the professional services sector as firms in segments like consultancy and legal can now better engage their overseas clients. Similarly, air travel and visitor arrivals are expected to pick up more quickly than earlier projected, thereby accelerating the recovery of aviation- and tourism-related sectors like air transport and arts, entertainment &amp; recreation”.


On a cautionary note, the report also maintained the external environment continues to be a challenge with the Russia-Ukraine conflict, global supply disruptions, monetary policy tightening and continued impact of COVID, and thus the growth outlook for some outward-oriented sectors in the Singapore economy has weakened. For instance the report noted that “as China is a key market for petroleum and chemicals products from Singapore, its economic slowdown is likely to adversely affect the growth prospects of Singapore’s chemicals cluster and the fuel &amp; chemicals segment of the wholesale trade sector”.

 

Singapore’s April Industrial Production Up 6.2% YoY

The Singapore 1Q22 GDP report noted last week that “the electronics cluster is expected to expand more strongly than earlier projected, bolstered by robust global demand for semiconductors from the 5G and automotive markets, as well as cloud services and data centres”. Last week, Singapore’s April Industrial Production was reported to grow 6.2% YoY, with transport engineering and electronics growing 17.2% YoY and 10.4% respectively. This means Singapore’s industrial production has gained ~7% in the first four months of 2022, following the ~13% growth of 2021.  

 

The STI includes two Singapore-based manufacturers – Venture Corporation and ST Engineering.



Venture Corporation has declined 2.0% in the 2022 YTD, after a similar 1.9% decline in total return 2021. On 29 April, Venture reported its growth momentum continued from 2021, with a 30% YoY increase in 1Q22 revenue to S$889M on robust demand from customers in the Lifestyle &amp; Wellness, Advanced Payment Systems, Advanced Industrial and Instrumentation, Test and Measurement technology domains. Additionally, the company highlighted that several iniatives from its R&amp;D Labs have enabled it to mitigate supply chain disruptions and expand its capabilities to fulfil more orders.



ST Engineering has generated an 11.5% total return in the 2022 YTD after a 2.3% gain in 2021. On 13 May, ST Engineering highlighted it had secured S$2.4B in new contracts in 1Q22, with an overall robust order book of S$21.3B, incl. $1.6B from TransCore and S$5.8B expected to be delivered in the remaining months of 2022. Management also flagged alignment with Digitalisation with the Cloud, AI Analytics, Cyber business to triple to &gt;S$500m by 2026.




      
    
    The full 30 STI stocks are tabled below.

STI Maintains 5.5% YTD Total Return as Economy Grew 3.7% in 1Q22

Capitaland Integrated Commercial Trust / Equity Bottom-Up

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For the 5 trading sessions that spanned May 20 to 26, the Straits Times Index (STI) gained 0.6 per cent, with the FTSE China A50 Index declining 1.1 per cent, the Hang Seng Index dipping 0.5 per cent and the FTSE Bursa Malaysia KLCI sliding 0.8 per cent. 

Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$109 million of net outflow, following the S$3.4 million of net inflow for the preceding 5 sessions. DBS Group Holdings, OCBC, Ascendas Reit, CapitaLand Integrated Commercial Trust and Suntec Reit led the net institutional outflows for the 5 sessions through to May 26. Share buybacks

There were 20 primary-listed stocks conducting share buybacks over the 5 sessions ended May 26, with a total consideration of S$51,483,484, down from the S$67,410,124 million for the preceding 5 sessions. 
Keppel Corporation led the consideration tally with 3,644,000 shares bought at an average price of S$6.80 per share. This brought the total amount of shares purchased on its current mandate to 0.86 per cent of its issued shares (excluding treasury shares).

The preceding mandate saw Keppel buy back 1.52 per cent of its issued shares.

On May 24, the company announced that Keppel Offshore &amp; Marine had, through its wholly owned subsidiaries, signed contracts for the bareboat charter of another 2 KFELS B Class rigs to be deployed in the Middle East. 
The rigs will be chartered to an established drilling company in the Middle East for deployment in Q4 2022 for a period of 3 years, with options for a year’s extension.

Total revenue from the charters, including the options and modification works by Keppel O&amp;M to prepare the rigs for on-site operations, is expected to be up to S$120 million.

Hong Fok Corporation : H30 0% led the buyback consideration tally for the non-STI stocks over the 5 sessions, purchasing 1,328,000 shares at an average price of 90.1 cents per share.

This brought the total amount of shares purchased on the current mandate to 0.82 per cent of its issued shares (excluding treasury shares).

At the Apr 27 AGM, the chairman of Hong Fok reported that the group had made a good recovery from the effects of the Covid-19 pandemic with an increase in revenue mainly from the sale of more residential units in Concourse Skyline, the sale of the last unit at Jewel of Balmoral, higher property management income and dividend income. Director and substantial shareholder transactions

The 5 trading sessions saw fewer than 70 changes to director interests and substantial shareholdings filed for just over 30 primary-listed stocks.

This included 7 company director acquisitions with 3 disposals filed, while substantial shareholders filed 3 acquisitions and 4 disposals.

Centurion Corporation

Between May 20 and 25, Centurion Corporation executive director and joint chairman David Loh Kim Kang acquired 1,831,300 shares of the purpose-built accommodation developer and manager for a consideration of S$640,955.

At 35.0 cents per share, this took his total interest in from 55.18 per cent to 55.40 per cent.

Loh’s preceding acquisition was in October 2020 with 200,000 shares acquired at 33.5 cents per share. He is responsible for the formulation of corporate and business strategies of the company and leads the execution of strategic growth plans of the group.

He has over 20 years of experience in the investment and brokerage industry and has been a principal and director of Centurion Global Ltd, a controlling shareholder of the company from April 2008 to the present.

On May 10, Centurion provided a business update, highlighting a 47 per cent year-on-year increase in Q1 2022 revenue.

This was attributed to higher contributions mainly from new purpose-built worker accommodation (PBWA) capacity and revenue streams, improved performance in Singapore PBWA accommodation assets, and recovery of occupancies in the UK and Australia purpose-built student accommodation portfolio.

These higher contributions were partly offset by the cessation of operations of dwell Selegie and the conclusion of management contracst for 2 factory-converted workers dormitories in Singapore.

Looking ahead, the company noted that as economies recover from Covid-19, and international travel resuming, populations of migrant workers and international students continue to expand across the geographies where Centurion operates. ABR Holdings

Between May 23 and 24, ABR Holdings managing director Ang Yee Lim acquired 301,700 shares of the company for a consideration of S$142,721 at an average price of 47.3 cents per share.

This took Ang’s interest in the restaurant operator from 51.71 per cent to 51.86 per cent. His preceding acquisition was on Dec 21 with 120,000 shares acquired at 46.0 cents per share.

ABR Holdings traces its roots to 1979 with the establishment of the 200-seater Swensen’s at Thomson Plaza, the first full-service ice-cream restaurant in Singapore.

Today, ABR operates more than 25 restaurant outlets and the Swensen’s brand has become synonymous with family friendly dining.

Ang was appointed to the board as an executive director in May 2004, and subsequently appointed managing director in July 2004.

He has over 20 years of experience in the food and beverage business and more than 30 years of experience in property development and investment in Singapore, Malaysia, Indonesia and Thailand. AnnAik

Between May 24 and 25, Low Kheng, spouse of AnnAik executive chairman cum CEO, Ow Chin Seng, purchased 1,794,900 shares of the company for a consideration of $155,292.

At an average price of 8.7 cents per share, this increased Ow’s total interest in the manufacturer and distributor of stainless-steel products from 38.34 per cent to 38.96 per cent.

Ow is primarily responsible for the business and strategic development of the group. With over 40 years of experience in the hardware and steel industry, he has been instrumental in the strategic direction and development of the group.

With last year’s hike in steel prices, strong demand of steel products and contribution of the environmental division, AnnAik achieved an attributable profit in 2021 of S$3.09 million, compared to S$177,000 in 2020. Dyna-Mac Holdings

On May 26, Dyna-Mac Holdings independent non-executive director Henry Tan Song Kok acquired 500,000 shares of the company at 15.7 cents per share.

With a consideration of S$78,600 this took his direct interest in the global multi-disciplinary contractor to 0.05 per cent.

Tan is also an independent director, on the boards of Asia Vets Holdings, BH Global Corporation, Penguin International and Trans-China Automotive Holdings. LHT Holdings

On May 24, LHT Holdings managing director, Yap Mui Kee, acquired 49,500 shares of the company for a consideration of S$34,719.

At an average price of 70.1 cents per share, this took her direct interest in the manufacturer of high-quality wooden pallets, boxes, and crates from 14.89 per cent to 14.99 per cent.

Preceding acquisitions saw Yap buy 52,100 shares at 71.0 cents per share on Mar 25, 17,700 shares at 70.0 cents per share on Mar 18 and 24,600 shares of at 69.1 cents per share on Mar 7.

Yap has over 35 years of experience in sales and marketing and plays a key role in exploring opportunities in new markets.

Part of her responsibility is also to monitor market developments and streamline the company’s product development efforts according to market demands.

Yap spearheads the group’s RFID (Radio Frequency Identification) ECR Pallet Tracking System and is actively involved in its ECR (Efficient Consumer Response) pallet rental business in Singapore and Malaysia. Oxley Holdings

On May 25, Oxley Holdings executive director and deputy CEO Eric Low See Ching acquired 50,000 shares of the company at an average price of 17.7 cents per share, at a consideration of S$8,850.

Low maintains a 28.13 per cent direct interest in Oxley Holdings and is responsible for the operation of the group, including sales and marketing, project development, business development and financial management.

Low also assists the CEO in charting and executing the strategic plans for the group. Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/centurions-david-loh-raises-stake-keppel-leads-buyback-tally"> read </a>the original version.
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    Share buyback


For the 5 trading sessions that spanned May 20 to 26, the Straits Times Index (STI) gained 0.6 per cent, with the FTSE China A50 Index declining 1.1 per cent, the Hang Seng Index dipping 0.5 per cent and the FTSE Bursa Malaysia KLCI sliding 0.8 per cent. 

Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$109 million of net outflow, following the S$3.4 million of net inflow for the preceding 5 sessions. DBS Group Holdings, OCBC, Ascendas Reit, CapitaLand Integrated Commercial Trust and Suntec Reit led the net institutional outflows for the 5 sessions through to May 26.  Share buybacks

There were 20 primary-listed stocks conducting share buybacks over the 5 sessions ended May 26, with a total consideration of S$51,483,484, down from the S$67,410,124 million for the preceding 5 sessions.  
Keppel Corporation led the consideration tally with 3,644,000 shares bought at an average price of S$6.80 per share. This brought the total amount of shares purchased on its current mandate to 0.86 per cent of its issued shares (excluding treasury shares).

The preceding mandate saw Keppel buy back 1.52 per cent of its issued shares.

On May 24, the company announced that Keppel Offshore &amp; Marine had, through its wholly owned subsidiaries, signed contracts for the bareboat charter of another 2 KFELS B Class rigs to be deployed in the Middle East.  
The rigs will be chartered to an established drilling company in the Middle East for deployment in Q4 2022 for a period of 3 years, with options for a year’s extension.

Total revenue from the charters, including the options and modification works by Keppel O&amp;M to prepare the rigs for on-site operations, is expected to be up to S$120 million.

Hong Fok Corporation : H30 0% led the buyback consideration tally for the non-STI stocks over the 5 sessions, purchasing 1,328,000 shares at an average price of 90.1 cents per share.

This brought the total amount of shares purchased on the current mandate to 0.82 per cent of its issued shares (excluding treasury shares).

At the Apr 27 AGM, the chairman of Hong Fok reported that the group had made a good recovery from the effects of the Covid-19 pandemic with an increase in revenue mainly from the sale of more residential units in Concourse Skyline, the sale of the last unit at Jewel of Balmoral, higher property management income and dividend income.  Director and substantial shareholder transactions

The 5 trading sessions saw fewer than 70 changes to director interests and substantial shareholdings filed for just over 30 primary-listed stocks.

This included 7 company director acquisitions with 3 disposals filed, while substantial shareholders filed 3 acquisitions and 4 disposals.

Centurion Corporation

Between May 20 and 25, Centurion Corporation executive director and joint chairman David Loh Kim Kang acquired 1,831,300 shares of the purpose-built accommodation developer and manager for a consideration of S$640,955.

At 35.0 cents per share, this took his total interest in from 55.18 per cent to 55.40 per cent.

Loh’s preceding acquisition was in October 2020 with 200,000 shares acquired at 33.5 cents per share. He is responsible for the formulation of corporate and business strategies of the company and leads the execution of strategic growth plans of the group.

He has over 20 years of experience in the investment and brokerage industry and has been a principal and director of Centurion Global Ltd, a controlling shareholder of the company from April 2008 to the present.

On May 10, Centurion provided a business update, highlighting a 47 per cent year-on-year increase in Q1 2022 revenue.

This was attributed to higher contributions mainly from new purpose-built worker accommodation (PBWA) capacity and revenue streams, improved performance in Singapore PBWA accommodation assets, and recovery of occupancies in the UK and Australia purpose-built student accommodation portfolio.

These higher contributions were partly offset by the cessation of operations of dwell Selegie and the conclusion of management contracst for 2 factory-converted workers dormitories in Singapore.

Looking ahead, the company noted that as economies recover from Covid-19, and international travel resuming, populations of migrant workers and international students continue to expand across the geographies where Centurion operates.  ABR Holdings

Between May 23 and 24, ABR Holdings managing director Ang Yee Lim acquired 301,700 shares of the company for a consideration of S$142,721 at an average price of 47.3 cents per share.

This took Ang’s interest in the restaurant operator from 51.71 per cent to 51.86 per cent. His preceding acquisition was on Dec 21 with 120,000 shares acquired at 46.0 cents per share.

ABR Holdings traces its roots to 1979 with the establishment of the 200-seater Swensen’s at Thomson Plaza, the first full-service ice-cream restaurant in Singapore.

Today, ABR operates more than 25 restaurant outlets and the Swensen’s brand has become synonymous with family friendly dining.

Ang was appointed to the board as an executive director in May 2004, and subsequently appointed managing director in July 2004.

He has over 20 years of experience in the food and beverage business and more than 30 years of experience in property development and investment in Singapore, Malaysia, Indonesia and Thailand.  AnnAik

Between May 24 and 25, Low Kheng, spouse of AnnAik executive chairman cum CEO, Ow Chin Seng, purchased 1,794,900 shares of the company for a consideration of $155,292.

At an average price of 8.7 cents per share, this increased Ow’s total interest in the manufacturer and distributor of stainless-steel products from 38.34 per cent to 38.96 per cent.

Ow is primarily responsible for the business and strategic development of the group. With over 40 years of experience in the hardware and steel industry, he has been instrumental in the strategic direction and development of the group.

With last year’s hike in steel prices, strong demand of steel products and contribution of the environmental division, AnnAik achieved an attributable profit in 2021 of S$3.09 million, compared to S$177,000 in 2020.  Dyna-Mac Holdings

On May 26, Dyna-Mac Holdings independent non-executive director Henry Tan Song Kok acquired 500,000 shares of the company at 15.7 cents per share.

With a consideration of S$78,600 this took his direct interest in the global multi-disciplinary contractor to 0.05 per cent.

Tan is also an independent director, on the boards of Asia Vets Holdings, BH Global Corporation, Penguin International and Trans-China Automotive Holdings.  LHT Holdings

On May 24, LHT Holdings managing director, Yap Mui Kee, acquired 49,500 shares of the company for a consideration of S$34,719.

At an average price of 70.1 cents per share, this took her direct interest in the manufacturer of high-quality wooden pallets, boxes, and crates from 14.89 per cent to 14.99 per cent.

Preceding acquisitions saw Yap buy 52,100 shares at 71.0 cents per share on Mar 25, 17,700 shares at 70.0 cents per share on Mar 18 and 24,600 shares of at 69.1 cents per share on Mar 7.

Yap has over 35 years of experience in sales and marketing and plays a key role in exploring opportunities in new markets.

Part of her responsibility is also to monitor market developments and streamline the company’s product development efforts according to market demands.

Yap spearheads the group’s RFID (Radio Frequency Identification) ECR Pallet Tracking System and is actively involved in its ECR (Efficient Consumer Response) pallet rental business in Singapore and Malaysia.  Oxley Holdings

On May 25, Oxley Holdings executive director and deputy CEO Eric Low See Ching acquired 50,000 shares of the company at an average price of 17.7 cents per share, at a consideration of S$8,850.

Low maintains a 28.13 per cent direct interest in Oxley Holdings and is responsible for the operation of the group, including sales and marketing, project development, business development and financial management.

Low also assists the CEO in charting and executing the strategic plans for the group.  Inside Insights is a weekly column on The Business Times, read the original version.



Centurion’s David Loh raises stake; Keppel leads buyback tally

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Keppel Corporation Limited's core businesses are offshore and marine, infrastructure, property investment and development, telecommunications and transportation, energy, and engineering.

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