Directors increase their stakes in real estate stocks

INSTITUTIONS were net buyers of Singapore shares in the five trading sessions from 13 to 19 September, with net institutional capital inflows amounting to S$367 million, bringing the total net capital inflows for the 15 trading sessions from 30 August (including the MSCI index rebalancing) to 19 September to S$1.2 billion.

These 15 sessions saw a reversal of more than 90 per cent of the net institutional outflow from Singapore equities this year to August 29.

Financial services, telecommunications, industrials and real estate investment trusts (REITs) led the net institutional capital inflows over the 15-session period from Aug. 30 to Sept. 19. Meanwhile, consumer discretionary, technology and real estate (excluding REITs) saw the largest net institutional capital outflows during that period.

The leaders in net institutional capital inflows during the five sessions up to and including September 19 were: DBS Group, Single, Keppel, OBC, CapitaLand Investments, UOB, Suntec Reit, Seat, Sembcorp Industries AND Engineering Technology in Singapore.

The leaders in the net outflow of institutional funds over the five sessions were: CapitaLand Ascendas Reit, Frasers Centrepoint Foundation, Wilmar International, Frasers Logistics & Commercial Trust, Hong Kong Land, Construction of the Yangzijiang Shipyard, Saty, Reit receipt, Lendlease Global Commercial REIT AND ESR-Logos Reit.

Over the course of five sessions, 16 listed companies bought back shares for a total of S$9.8 million, a pace similar to the previous week.

UOB again led in buyback considerations over the five sessions, buying 140,000 shares at an average price of S$32.46 per share. Digital Core Reit Management bought 2.86 million units Digital Core REIT Between September 13 and 17, Seatrium repurchased 1.17 million shares, bringing the cumulative percentage of issued shares (excluding treasury shares) repurchased under the current order to 0.37 percent.

During the five trading sessions, 70 directors’ interests and significant interests in more than 30 listed stocks were reported. Directors or CEOs reported 15 acquisitions and one disposal, while significant shareholders reported six acquisitions and three disposals.

UMS Integration

September 12th UMS Integration Chairman and CEO Andy Luong acquired 600,000 shares at an average price of S$0.983 per share. This increased his deemed stake in the company from 15.25 per cent to 15.34 per cent. His previous open market acquisition was on May 16, when he purchased 123,600 shares at S$1.07 per share.

Luong was appointed CEO of the company in January 2005, having previously served as COO since April 2004. As president and founder of UMS Group, he has more than 20 years of experience in front-end semiconductor component manufacturing. He honed his machining skills while working in his family’s business in Vietnam. After emigrating to the United States in 1979, he founded a precision machining company called Long’s Manufacturing shortly after graduating from college.

UMS Integration reported a net profit of S$19.1 million for the first half of its financial year 2024 (ended June 30) on revenue of S$109.9 million, boosted by the boom in the international aerospace market and a recovery in the semiconductor industry.

Despite a 34 per cent decline in net profit compared to the first half of FY2023, the group’s financial position remains solid, with its net cash balance increasing by S$29.9 million to S$74.9 million at the end of June 2024.

The net increase in cash and cash equivalents (net of bank loans) was primarily due to the proceeds from the issue of group shares in the first quarter of fiscal year 2024 and net cash generated from operating activities.

Luong noted that despite market turbulence and challenges in the global chip industry, the group’s performance improved in the second quarter of fiscal 2024, with an increase in gross margin, an improved product lineup and increased orders from a new major customer in Malaysia. He added that diversification into the aerospace sector also boosted sales and profits as global air travel accelerates.

The Group is also in the process of seeking a listing on the main market in Malaysia to provide added value to shareholders as this will broaden its investor reach and expand its investor base.

Suntec Reit

On September 17, ESR Trust Management (Suntec) chairman and non-executive director Chew Gek Khim acquired 148,000 units of Suntec Reit at S$1.35 per unit. Chew joined the manager’s board in January 2014 and was appointed chairman in April that year. She has served as executive chairman of The Straits Trading Company since April 2008.

In addition, he serves as Executive Chairman of Tecity Group and Chairman of Malaysia Smelting Corporation. He also serves as Deputy Chairman of Tan Chin Tuan Foundation.

In August, Suntec Reit CEO and manager Chong Kee Hiong said the trust’s Singapore office and retail portfolios had seen solid rental returns and strong year-on-year growth in conference business. He added that while the Minster building in London is expected to reach full occupancy in the second half of FY2024, leasing activity in Adelaide remains tight.

Chong said Suntec Reit remains focused on improving the operating performance of its assets and exploring opportunities to dispose of mature assets to deliver long-term value to unitholders.

Suntec Reit recorded the 11th-largest institutional capital inflow this year, with net inflows of S$58 million, while the overall Singapore Reit sector recorded net institutional capital outflows of S$899 million.

Centurion Corporation

September 17th Centurion Corporation Executive Director and Joint Chairman David Loh Kim Kang acquired 300,000 shares through a market transaction at S$0.74 per share. This increased his direct stake from 7.87 per cent to 7.91 per cent. His previous acquisitions were on June 11, when he acquired 20 million shares in a marriage transaction at S$0.54 per share, and on June 3 and 4, when he acquired 538,600 shares at S$0.53 per share.

His total stake in the specialist accommodation developer and manager now stands at 58.57 per cent, with the majority of the deemed stake stemming from his 50 per cent stake in Centurion Global.

Loh is responsible for formulating corporate and business strategies and leads the execution of strategic growth plans. He has over 20 years of experience in the investment and brokerage industry.

For the first half of FY2024 (ended June 30), Centurion Corporation reported revenues up 27 per cent compared to the first half of FY2023 to S$124.4 million, driven by strong occupancy across its purpose-built employee and student accommodation portfolios in Singapore, the UK and Australia, while positive rental performance across all operating markets also contributed to the growth.

Ho Bee Land

On September 12-13, Ng Noi Hinoy, wife Ho Bee Land Executive Chairman Chua Thian Poh acquired 47,700 shares for S$88,245. At S$1.85 per share, these transactions increased Dr Chua’s alleged stake in Ho Bee Land from 75.58 per cent to 75.59 per cent.

Dr. Chua founded Ho Bee Group and was appointed its Chairman and CEO in 1999. He transitioned to the position of Executive Chairman in January 2022.

In the first half of FY2024 (ended June 30), Ho Bee Land reported a 48 per cent increase in revenue to S$230 million and a net profit of S$9.5 million, a significant improvement compared to a net loss of S$156.3 million in the same period last year.

The group saw its development property sales more than triple to S$94.7 million, driven by higher sales in Australia and Sentosa Cove, while the occupancy rate of its commercial portfolio remained high at 95 per cent.

Noel’s International Gifts

September 16 Noel’s International Gifts Managing Director Alfred Wong Siu Hong bought 163,500 shares at an average price of S$0.359 per share. The S$58,743 purchase increased his total stake in the gift baskets, flowers and presents maker from 46.72 per cent to 46.88 per cent. This followed the acquisition of 302,800 shares at an average price of S$0.356 per share between Sept 4 and 5.

Wong, the founder of Noel Gifts International, has been its Managing Director since its inception. With 50 years of experience in the basket, floral and gift industry, he oversees the strategic planning, financial management and development of the group. Since 1997, he has also headed the real estate division, managing real estate investments and development.

Wing Tai Holdings

Wing Tai Holdings Chairman and Managing Director Cheng Wai Keung continued to build his presumed stake in the company with the acquisition of shares by his wife, Helen Chow. On September 13, Cheng increased his presumed stake in the leading property developer and lifestyle retailer by 20,000 shares. He maintains a 61.53 percent total stake in the company.

The author is a market strategist at the Singapore Exchange (SGX). To read SGX market research reports, visit sgx.com/research.