INSTITUTIONS were net buyers of Singapore stocks over the four trading sessions spanning Thursday (Aug 8) to Wednesday’s close, with S$31.5 million of net institutional inflow. The period also saw 18 primary-listed companies conduct buybacks with a total consideration of S$22.5 million.
Like the preceding nine sessions, Singapore Airlines led the buyback consideration tally, acquiring 1.5 million shares at an average price of S$5.90 per share.
Digital Core Reit Management again acquired units of Digital Core Real Estate Investment Trust (Reit) over each of the four sessions.
Leading the net institutional inflow over the four sessions were Singapore Exchange, Singtel, Yangzijiang Shipbuilding (Holdings), Jardine Cycle & Carriage, CapitaLand Ascendas Reit, Sembcorp Industries, Keppel DC Reit, Sheng Siong Group, ComfortDelGro Corporation, and CapitaLand Integrated Commercial Trust.
Leading the net institutional outflow were Keppel, Singapore Airlines, UOB, OCBC, Thai Beverage, Mapletree Logistics Trust, Wilmar International, Singapore Technologies Engineering, Frasers Logistics & Commercial Trust and Nanofilm Technologies International.
The four trading sessions also saw more than 60 director interests and substantial shareholdings filed for over 30 primary-listed stocks. Directors or chief executive officers filed 14 acquisitions, and three disposals, while substantial shareholders filed seven acquisitions and one disposal.
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Multi-Chem
Between Aug 8 and Aug 13, Multi-Chem CEO Foo Suan Sai disposed of 344,400 shares at an average price of S$2.83. This decreased his total interest from 69.21 per cent to 68.82 per cent. His previous transaction on the open market was an acquisition of 9,900 shares on Jun 13 at an average price of S$2.37 per share.
Foo is one of the founding shareholders of Multi-Chem. He has more than 30 years of experience in the printed circuit board (PCB) industry. He is currently responsible for the overall direction and development of the group.
Prior to his acquisitions, Multi-Chem had reported that the group revenue for the 2024 financial year’s first half (ended Jun 30) had increased 9.4 per cent from H1 FY2023, to S$342.5 million. This saw the group achieve H1 FY2024 profit after tax of S$16.4 million, compared with S$11.4 million in the same period the year before. For its FY2023, the group reported profit after tax of S$27.1 million compared with S$20 million in FY2022.
With a market capitalisation of S$254 million as at Aug 14, the stock maintains a return-on-equity ratio of 22 per cent, and a price-to-earnings ratio of 7.9 times. Cash and cash equivalents stood at S$52.4 million with no bank borrowings at the company level as at Jun 30. The stock has seen its average daily turnover advance to near S$50,000 this year, more than trebling 2023 levels.
For more than three decades, Multi-Chem has served as a value-added supplier to PCB manufacturers. Since 2002, Multi-Chem has been distributing IT products through the M.Tech Group which has now become the main business for the Multi-Chem group. M.Tech is a leading regional distributor of cybersecurity and network-performance products, offering top-tier products from industry-leading vendors. It has a presence in 27 cities across 14 countries, and its products have become the primary business for Multi-Chem, now contributing more than 99 per cent of its revenue.
Multi-Chem maintains it strategically focuses on selling and promoting only top-tier IT products. Currently, it offers industry-leading IT products from vendors such as Check Point, Cisco, CyberArk, Imperva, Trellix (formerly McAfee), Tufin, Proofpoint, RSA, SolarWinds, Symantec (a division of Broadcom), and Trend Micro. To enhance technical competency internally and train its partners, certified IT training is provided through the Education Services Division of M.Tech Products, which is authorised to conduct Check Point courses. This training business complements the core IT distribution business and is expected to increase awareness and technical knowledge through the courses offered.
Mapletree Industrial Trust and Mapletree Pan Asia Commercial Trust
Chua Tiow Chye serves as non-executive director of the manager of Mapletree Industrial Trust and the manager of Mapletree Pan Asia Commercial Trust (MPACT). He increased his interest in both Reits on Aug 7. He acquired 110,000 units of Mapletree Industrial Trust at S$2.24 a unit, and 200,000 units of MPACT at S$1.25 per unit. Chua maintains a 0.06 per cent interest in Mapletree Industrial Trust and 0.07 per cent interest in MPACT.
As deputy group CEO of Mapletree Investments, Chua is instrumental in propelling the group’s strategic initiatives, particularly in expanding and steering its international real estate investments and developments. His previous roles within the group include leading the global lodging sector and the private capital management function. He has also served as the group chief investment officer and the regional CEO of North Asia and new markets. His other past leadership roles include being the CEO of the manager of Mapletree Logistics Trust. Before his tenure at Mapletree, which began in 2002, Chua held senior positions at Vision Century Corporation, Ascendas, Singapore Food Industries, and UOB.
Raffles Medical Group
On Aug 12, Raffles Medical Group executive chairman Loo Choon Yong acquired 800,000 shares at an average price of S$0.880 per share. This increased his total interest from 55.14 per cent to 55.18 per cent. Since late February, Dr Loo has been gradually increasing his total interest in the stock from 53.02 per cent.
IFS Capital
On Aug 12, IFS Capital executive director and group CEO Randy Sim Cheng Leong acquired 1.1 million shares at an average price of S$0.11 per share. This increased his direct interest in the provider of financing, insurance and asset management services, from 0.28 per cent to 0.57 per cent.
Sim is responsible for the overall management of the entities within the IFS Group. He began his career in the Singapore Economic Development Board and subsequently spent eight years in Citibank across its consumer and commercial banking businesses.
For its H1 FY2024 (ended Jun 30), IFS Capital reported increased revenue from its lending and insurance businesses. However, it also faced higher losses in the insurance sector due to claim reserves for a legacy financial guarantee issued, and increased operating expenses. Consequently, the group’s profitability declined by S$0.2 million (6 per cent), ending the period with a pre-tax profit of S$2.8 million. The group noted in its outlook that on the insurance front, inflation has had an impact on claims costs over the recent years, and that as it steps up the growth of its insurance portfolio, it will monitor and manage this aspect carefully. The group added that the financing business should see some margin tailwind if interest rates begin to ease in a meaningful way.
Credit Bureau Asia
On Aug 12, Credit Bureau Asia’s lead independent director, Chua Kee Lock, acquired 100,000 shares at an average price of S$0.896 per share. This was his first acquisition on the open market in the South-east Asia-focused credit and risk information solutions provider, which took his direct interest to 0.04 per cent. Chua is also the group president and CEO of Vertex Venture Holdings. Additionally, he holds a directorship at Venture Corporation. His tenure at the Vertex group of companies was preceded by his role as president and executive director of Biosensors International Group from 2006 to 2008.
Credit Bureau Asia’s H1 FY2024 revenue increased 12.2 per cent from H1 FY2023, to S$29.6 million, while its net profit before tax saw 21.2 per cent growth, reaching S$15.9 million.
The growth was attributed to the robust performance of the group’s two core businesses, namely the financial institution (FI) data business and the non-FI data business, with the latter covering both consumer and commercial credit risk information.
The group observed that digital banks in Singapore are broadening their offerings, which has been beneficial for Credit Bureau Singapore due to increased customer acquisition and monitoring activities. Additionally, Credit Bureau Cambodia’s revenue is growing alongside Cambodia’s economic expansion, as the firm broadens its business services. The group also noted that Myanmar Credit Bureau has resumed full operations, is showing significant financial improvement and is anticipated to positively impact the group’s financial performance soon.
Zico Holdings
Between Aug 13 and Aug 14, Zico Holdings group CEO Ng Hock Heng acquired 2,338,200 shares at S$0.034 per share. With a consideration of S$79,291, this increased his direct interest in the Catalist-listed stock from 3.41 per cent to 3.98 per cent. His preceding acquisition was on Jul 4, with 1,791,000 shares acquired at S$0.043 per share. Ng has been the executive director at Zico Holdings since 2014 and was appointed as the group CEO in May 2023, as part of the group’s planned leadership transition.
On Aug 12, Zico Holdings reported profit after tax of RM1.03 million (S$0.3 million) for H1 FY2024 (ended Jun 30), compared with a loss after tax of RM0.98 million in the corresponding period the previous year. This was achieved on the back of a slight increase in revenue to RM30.26 million in H1 FY2024, and the execution of disciplined cost-management measures.
The writer is the market strategist at Singapore Exchange (SGX). To read SGX’s market research reports, visit sgx.com/research.
