THE Straits Times Index gained 2.7 per cent over the five trading sessions from Oct 30 through Nov 3.

 

There were 68 filings for changes in director interests and substantial shareholdings in that period, from 33 companies, as well as 46 filings for share buybacks by 16 companies.

 

Wing Tai

Wing Tai Holdings : W05 0% chairman and managing director Cheng Wai Keung continued to add to his deemed interest in the company, as his spouse Helen Chow acquired more shares.

 

From Oct 30 through to Nov 3, Cheng&rsquo s deemed interest in the real estate developer and retailer increased by 417,700 shares.

 

Over the five trading sessions, five transactions were reported. On Oct 30, Cheng bought 78,100 shares. On Oct 31, he bought 189,600 shares. On Nov 1, he bought 50,000 shares. On Nov 2, he bought another 50,000 shares. On Nov 3, he again bought 50,000 shares.

 

These latest purchases bring his total interest in the company to 61.33 per cent, up from 61.27 per cent prior to the transactions.

 

Filings on the Singapore Exchange : S68 +1.38% (SGX) did not disclose the consideration for the purchases.

 

The transactions follow a steady pattern of share acquisitions by Cheng&rsquo s wife since Sep 8. Before that date, Cheng&rsquo s deemed interest was 60.2 per cent.

 

His wife has bought nearly four million shares over the period from Sep 8 through Nov 3. Over that period, Wing Tai&rsquo s shares have fallen slightly &ndash from S$1.3406 to S$1.33.

 

The stock is down 11.9 per cent this year.

 

Cheng was appointed to the board of Wing Tai Holdings in 1973 and played a pivotal role in the growth and success of the group&rsquo s business. The company, which was listed in 1989, has core businesses in property investment and development and lifestyle retail.

 

It owns and manages a portfolio of quality real estate developments in Singapore, Malaysia, China, Japan, Australia and Hong Kong. Its retail business represents global brands such as Adidas and G2000 in Singapore as well as Mango and Furla in Malaysia. It also has a joint venture with Japan&rsquo s Fast Retailing to operate Uniqlo stores in Singapore and Malaysia.

 

For its FY2023 (ended Jun 30), the group recorded a total revenue of S$476.3 million. This was a 7 per cent decrease from FY22, attributable mainly to a lower contribution from development properties.

 

Net profit fell 91 per cent to S$13.3 million, from S$140.2 million, mostly due to its operations in Hong Kong. Wing Tai Properties, its Hong Kong associate, reported lower operating profit and higher fair value losses on investment properties during the year.

 

Wing Tai had flagged, at the start of August, that it would report a &ldquo significant decrease in net profit&rdquo for FY23. Its shares promptly began to slide, falling from S$1.40 on Aug 4, before the guidance was given, to S$1.31 on Aug 21.

 

By the time Cheng&rsquo s wife began accumulating Wing Tai stock on Sep 8, the counter had recovered to S$1.36. It rose as high as S$1.46 on Oct 19, possibly on the strength of the buying.

 

In the past, active share buybacks by Cheng and his family have fuelled rumours that Wing Tai would be privatised.

 

In 2015, for instance, a spate of share buybacks by the group led to speculation among analysts that the company would delist to avoid paying Qualifying Certificate penalties on its unsold luxury properties. Cheng denied at the time that the company planned to do so.

 

In 2012, the Cheng family, then a major shareholder, also made a successful partial offer at S$1.39 per share to bring its stake above 50 per cent. At the time, Cheng said that the offer was not to delist the company, but to boost the family&rsquo s shareholdings and gain statutory control of the company. 

 

More recently, in 2017, Wing Tai Holdings mounted a successful S$94 million bid to take its Malaysia-listed counterpart Wing Tai Malaysia private.

 

Cheng is raising his stake at a significant discount. Wing Tai&rsquo s net asset value per ordinary share as at Jun 30, 2023, was S$4.13.

 

Sarine Technologies

Dual-listed Sarine Technologies : U77 0% continued its share buyback spree over the last trading week. On Oct 31, it purchased 100,000 shares at S$0.29 per share for a total consideration of S$29,091.70.

 

The transaction brings the total number of share buybacks by the company for the month of October to 20.

 

The diamond technology company has bought back shares every week since mid-September, with the frequency of these buybacks increasing in October.

 

From Sep 18 to Oct 31, Sarine bought a total of 748,400 shares for a consideration of S$235,636.46.

 

Headquartered in Israel, the company is involved in the development, manufacture and sale of precision technology products used in the processing of diamonds and gems. It is also listed on the Tel Aviv Stock Exchange.

 

Its share price has been on a downward trend since May this year, but the fall has been steeper since October. In the wake of the outbreak of war between Israel and Hamas, Sarine&rsquo s shares have declined 9.4 per cent over the past month.

 

The counter closed flat at S$0.29 on Friday, close to its 52-week low of S$0.28.

 

Sarine sells tools that help diamond makers and sellers analyse a diamond, cut and polish it, and grade it.

 

On Oct 31, the company announced that jewellery retailer Stargems would be the first to adopt its Sarine AutoScan system. This is a registration system for rough diamond parcels, which are assortment packs of uncut diamonds.

 

The system makes it easier for diamonds to be registered close to source, which in turn helps improve traceability for the diamonds in the parcel.

 

In a press release announcing the development, Stargems chairman Shailesh Javeri said traceability for rough diamonds has become a &ldquo pressing necessity&rdquo due to policies in G7 nations and developments in the field of environmental, social and corporate governance.

Wing Tai Holdings : W05 +0.71% chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares.

 

From Oct 20 through to Oct 26, Cheng increased his deemed interest in the leading real estate developer and lifestyle retailer by 720,300 shares.

 

He maintains a 61.27 per cent total interest in the company. Since Sep 8, Chow has acquired 2.85 million shares.

Wing Tai : W05 -1.37% Holdings chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow&rsquo s acquisition of shares.

 

From Oct 13 through to Oct 19, Cheng has increased his deemed interest in the leading real estate developer and lifestyle retailer by 1.1 million shares. He maintains a 61.17 per cent total interest in the company. Since Sep 8, Chow has acquired 2.85 million shares.

Wing Tai Holdings : W05 -0.69% chairman and managing director Cheng Wai Keung continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares. From Oct 6 through to Oct 12, Cheng increased his deemed interest in the leading real estate developer and lifestyle retailer by 576,300 shares.

 

He maintains a 61.03 per cent total interest in the company. Since Sep 8, Chow has acquired 1.75 million shares.

 

Cheng was appointed to the board of Wing Tai Holdings in 1973 and plays a pivotal role in the growth and success of the group&rsquo s business.

 

He concurrently serves as deputy chairman of Singapore investment company Temasek and chairman of Singapore Health Services.

 

This year, Wing Tai Holdings celebrated 60 years since The Wing Tai Garment Manufactory (Singapore) was established to meet growing industry demand and became the first factory to produce jeans in Singapore.

 

The company entered the Singapore property market in 1978 and now owns and manages a portfolio of quality real estate developments in Singapore, Malaysia, China, Japan, Australia, and Hong Kong.

 

In addition, its retail business represents global brands including Adidas and G2000 in Singapore as well as Mango and Furla in Malaysia.

 

For its FY23 (ended Jun 30), the group recorded a total revenue of S$476.3 million, representing a 7 per cent decrease from FY22. This was mainly due to the lower contribution from development properties.

 

Institutions are net sellers of Singapore stocks over the five trading sessions through to Oct 12, with S$28 million of net institutional outflow. 

 

INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Oct 12, with S$28 million of net institutional outflow, as 19 primary-listed companies conducted buybacks with a total consideration of S$7.7 million.

 

OCBC : O39 -0.76% led the share buyback consideration tally, buying back 300,000 shares at an average price of S$12.87 per share, followed by Sembcorp Industries : U96 -2.26% which bought back 365,000 shares at an average price of S$4.96 per share. Heavy lifting specialist Sin Heng Heavy Machinery : BKA 0% also bought back 648,200 shares at an average price of S$0.49 per share.

 

Leading the net institutional outflow over the five sessions were UOB : U11 -1.22%, Singapore Airlines : C6L 0%, DBS : D05 -0.68%, Thai Beverage : Y92 0%, Jardine Matheson : J36 -0.95%, Mapletree Logistics Trust : M44U -1.24%, Singtel : Z74 -2.06%, Wilmar International : F34 -2.72%, CapitaLand Ascendas Reit : A17U -1.47% and Sembcorp Industries.

 

Meanwhile, OCBC, Venture Corporation : V03 -0.9%, Singapore Exchange : S68 -0.71%, ComfortDelGro Corporation : C52 -1.48%, AEM : AWX +0.27%, UMS : 558 -0.75%, Singapore Technologies Engineering : S63 -0.25%, Seatrium : S51 -0.79%, Frasers Logistics & Commercial Trust : BUOU -2.73% and Sats : S58 0% led the net institutional inflow over the five sessions.

 

The five trading sessions saw 50 changes to director interests and substantial shareholdings filed for close to 30 primary-listed stocks. This included 11 company director acquisitions with two disposals filed, while substantial shareholders filed nine acquisitions and three disposals.

 

Companies that saw directors or CEOs acquire shares included Hock Lian Seng Holdings : J2T +2%, Intraco : I06 0%, ISEC Healthcare : 40T -2.38%, JB Foods : BEW 0%, Nam Lee Pressed Metal Industries : G0I 0%, Noel Gifts International : 543 0%, QAF : Q01 -0.6%, Raffles Education : NR7 -1.75% and YKGI : YK9 -4.17%.

Going by filings on SGXnet, the chairman of Wing Tai Holdings W05 0.7% views his company&rsquo s shares as an attractive investment. The chairman&rsquo s wife has been buying shares in his company regularly, including on Oct 13. The chairman&rsquo s deemed interest has crept up from 60.92% as announced on Sept 8 to 61.04% based on filings on SGXnet.

 

Wing Tai announced a set of dismal results for its FY2023 for the 12 months to June 30. Its full year net profit fell by some 91% to a tad above $13 million, although excluding fair value losses net profit would be a lot more, at $131 million. More than, in 2HFY2023, Wing Tai recorded a net loss.

 

Be that as it may, Wing Tai&rsquo s gearing is at a meagre 8%. Its net asset value (NAV) as at June 30 stood at $4.13 compared to its last traded price on Oct 13 of $1.43. The low this year was $1.30.

 

Some market watchers are wondering if the chairman and his family could make a further bid for Wing Tai. Back in 2012, the chairman and his family made a partial offer for the company at $1.39 per share.

 

Based on Wing Tai&rsquo s number of shares in issue, the remaining 38.96% or 329.06 million shares would be priced at $470.5 million based on the Oct 13 close of $1.43. However, any offer for the remaining 38.96% would have to be at a premium to $1.43. A respectable price, according to market watchers is a P/NAV of 0.5x. This would value the stake not owned by the chairman and his family at $679.5 million.

 

Separately, Frasers Property TQ5 -1.23% (FPL) is trading at a mere 0.3x P/NAV at its last done price on Oct 13. Its gearing is a lot higher than Wing Tai&rsquo s, at 72.7%. Thai Beverage Y92 0.91% and TCC Assets owns 86.8% of FPL. The number of shares it doesn&rsquo t own are around 514.86 million. An offer for these shares at a respectable P/NAV of 0.5x works out at $661.6 million. While FPL is viewed as undervalued by some analysts, it is also relatively illiquid.

 

See also: Frasers Property expects lower values for investment property in UK and Europe

 

Of course there are other stocks on the SGX where major shareholders own 88%. These are Great Eastern Holdings G07 -0.22% and Pacific Century Regional Developments P15 1.79% (PCRD). Of the two, PCRD has less liquidity. And it has a share buyback programme that is implemented regularly.

 

Whether it is one of these companies that are privatised or others remains to be seen. On the other hand, funding costs are high, so major shareholders may just wait out the high cost of funds. 

 

PROPERTY group Wing Tai Holdings : W05 -0.75% sank into the red for the second half-year ended June with a S$50 million net loss, a reversal from a net profit of S$86.4 million in the corresponding period the year before.

 

This was largely due to a loss from its associated and joint venture (JV) companies, reported at S$43.8 million. This was a reversal from last year&rsquo s S$90.7 million in share of profits from associated and JV companies.

 

In announcing its results on Friday (Aug 25), the group posted a 4 per cent rise in revenue to S$215.5 million, from S$208 million in H2 2022.

 

Loss per share for the second half-year was S$0.0701, compared to earnings per share of S$0.1048 cents the year before.

 

The company recommended a first and final dividend of S$0.03 per share, with an additional special dividend of S$0.02 per share. Shareholders will be notified of the dates for its books closure and payout later, it added.

 

For the full year, net profit shrank 91 per cent to S$13.3 million, from S$140.2 million in H2 last year. Revenue slipped 7 per cent to S$476.3 million from S$514.6 million, on the back of lower contribution from development properties.

 

The group attributed the adverse share of results from associated and joint venture companies to a lower operating profit and higher fair-value losses on investment properties from Wing Tai Properties in Hong Kong. This was, however, partially offset by higher contributions from Uniqlo in Singapore and Malaysia.

 

It added that it will continue to monitor the property market, and release more residential units for sale at the appropriate time.

 

This month, the company released a guidance that its full-year net profit would see a &ldquo significant decrease&rdquo due to an &ldquo adverse change&rdquo in the fair value of the investment properties owned by its associated company.

 

Wing Tai Holdings W05 -1.41% has issued a profit guidance, expecting to report a &ldquo significant decrease in net profit attributable to shareholders&rdquo at its upcoming results for FY2023 ended June.

 

According to an Aug 4 bourse filing, Wing Tai&rsquo s financial position &ldquo remains healthy&rdquo with a &ldquo low net gearing ratio&rdquo of approximately 0.08x as at June 30.

 

The company is in the process of finalising its unaudited consolidated results for FY2023, which will be released on Aug 25.

 

On July 28, Wing Tai&rsquo s wholly-owned subsidiary Wincove rescinded its contract to acquire Holland Tower.

 

According to the company, this is due to the non-fulfilment of &ldquo certain conditions thereunder&rdquo .

 

The non-completion of the acquisition has no material impact on the group&rsquo s net asset value (NAV).

 

On March 15, Wing Tai announced that Wincove had successfully tendered for the collective purchase of the freehold Holland Tower for $76.3 million, or $1,746 sq ft per plot ratio (psf ppr).

 

Holland Tower is located at 10 Holland Heights in prime District 10.

 

WING Tai Holdings : W05 -0.69%&rsquo wholly-owned subsidiary has rescinded the contract for the acquisition of residential property Holland Tower for S$76.3 million.

 

Wing Tai, in a bourse filing on Friday (Jul 28), said the contract was rescinded as certain conditions were not fulfilled. It added that the calling off of the purchase has no material impact on the group&rsquo s net asset value.

 

The group&rsquo s subsidiary, Wincove Investment, entered into the contract for the freehold site in March.

 

Holland Tower was put up for collective sale in February. The 14-storey property located at 10 Holland Heights was completed in 1976, and comprises 19 residential units, each spanning 1,862 square feet (sq ft) to 2,949 sq ft.

 

It has a site area of 2,033 square metres (sq m) with a gross floor area of 4,059 sq m.

 

Wing Tai had planned to redevelop the property into a residential development for sale.

 

WING Tai Holding : W05 +0.68%&rsquo s wholly-owned subsidiary will acquire Holland Tower for S$76.3 million, translating to a land rate of S$1,746 per square foot per plot ratio (psf ppr), the group said on Wednesday (Mar 15).

 

The subsidiary, Wincove Investment, has entered into a contract for the collective purchase of the freehold site. This is subject to approval from the Strata Titles Board and the Singapore Land Authority.

 

Holland Tower was put up for collective sale last month the public tender closed on Tuesday. Owners were seeking S$76 million for the property or S$1,739 psf ppr.

 

The 14-storey property located at 10 Holland Heights was completed in 1976, and comprises 19 residential units, each spanning 1,862 square feet (sq ft) to 2,949 sq ft. It has a site area of 2,033 square meters (sq m) with a gross floor area of 4,059 sq m.

 

The site falls within District 10&rsquo s Good Class Bungalow Area in Holland Park, and is a five-minute drive or a 15-minute walk to Dempsey Hill and Holland Village. It is also near the Farrer Road and Holland Village MRT stations.

 

Holland Tower is near schools such as Anglo-Chinese School (International) and Nanyang Primary School, and also a short distance from Singapore Botanic Gardens and the Orchard Road shopping belt.

 

Wing Tai plans to redevelop the property into a residential development for sale. The group does not expect the deal to have any material impact on its net asset value.

 

Wing Tai executive director Tan Hwee Bin said: &ldquo We plan to leverage its superior location attributes to develop a luxurious and iconic residential development with stunning unblocked views of the lush greenery in Holland Park as well as the Singapore city skyline.&rdquo

 

WING Tai Holdings&rsquo Hong Kong-based associate company, Wing Tai Properties, has issued a profit warning, stating that the group may report a loss for the financial year ended Dec 31, 2022, although it made HK$854.4 million (S$146.7 million) in profit in the previous FY.

 

This comes as the group&rsquo s share of results of joint ventures may be a loss of about HK$50 million for the financial year, versus a profit of HK$242.9 million in FY2021.

 

In a bourse filing on Tuesday (Mar 14), Wing Tai Properties attributed the expected loss to an adverse change in the fair value of the investment properties of the joint ventures.

 

It added that preliminary findings from the independent revaluation indicated that the total adverse change in the fair value of the investment properties may be more than double the amount of HK$527.4 million previously reported for FY2021.

 

Meanwhile, the group noted that FY2021&rsquo s profits included a one-off valuation gain of HK$472.2 million on units distributed in specie by a joint venture to it. 

 

Exclusive of this one-off gain, the group&rsquo s profit attributable to shareholders of the company amounted to HK$382.2 million in that year, it declared.

 

That said, Wing Tai Properties said a change in the value of investment properties is non-cash in nature and will not have an impact on the operating cash flow of the group. 

 

&ldquo The overall financial, business and trading positions of the Group remain healthy,&rdquo it said.

 

Wing Tai Properties is expected to announce its audited results around Mar 23.