INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Sep 21, with S$205 million of net institutional outflow, while 24 primary-listed companies conducted buybacks with a total consideration of S$22.1 million.

OCBC led the share buyback consideration tally, buying back 1.2 million shares at an average price of S$12.67 per share, followed by Olam Group, which bought back 2.7 million shares at an average price of S$1.08 per share. StarHub also bought back 1.28 million shares at an average price of S$1.09 per share.

Leading the net institutional outflow over the five sessions were DBS, UOB, Thai Beverage, OCBC, Keppel Corporation, Frasers Logistic & Commercial Trust, Singapore Airlines, Seatrium, CapitaLand Investment and CapitaLand Integrated Commercial Trust.

Singtel, Singapore Exchange, Mapletree Industrial Trust, Digital Core Reit, Sembcorp Industries, CapitaLand Ascendas Reit, Mapletree Pan Asia Commercial Trust, AIMS Apac Reit, Yangzijiang Financial Holding and DFI Retail Group led the net institutional inflow over the five sessions.

The five trading sessions saw another 60 changes to director interests, and substantial shareholdings filed for close to 30 primary-listed stocks. This included 14 company director acquisitions with one disposal filed, while substantial shareholders filed 11 acquisitions and four disposals.

Wilmar International

Between Sep 19 and Sep 21, Wilmar International chairman and CEO Kuok Khoon Hong increased his deemed interest in the global agri-business from 13.42 per cent to 13.44 per cent. This saw Jaygar Holdings acquire 250,000 shares, Longhlin Asia acquire 258,350 shares and Hong Lee Holdings acquire 258,350 shares. The 766,700 shares were all acquired at S$3.69 per share.

Kuok’s preceding acquisitions were between Sep 8 and Sep 11, with 1,456,500 shares at S$3.66 per share. Before that, 877,100 shares were acquired at an average price of S$3.55 on Aug 25.

Kuok has extensive experience in the agri-business industry and has been involved in the grains, edible oils, and oilseeds businesses since 1973 and has served as the chairman of Wilmar International since July 2006. He has gradually increased his total interest in Asia’s leading agribusiness group, from 12.20 per cent in May 2017.

Wilmar International is organised into four reportable operating segments, which include food products, feed and industrial products, plantation and sugar milling and others, which includes the group’s logistics & jetty port services and investment activities.

In its H1 FY23 (ended Jun 30), the feed and industrial products contributed 54 per cent of revenue, with food products contributing 42 per cent. Higher volume of sales across all the main businesses of the feed and industrial products led the segment to report an improvement in overall sales volume by 12.7 per cent to 27.9 million MT in H1 FY23.

The overall sales volume for the food products also grew by 5.5 per cent to 14.6 million MT for H1 FY23, with stronger sales volume recorded for its medium pack and bulk products. While both segments reported higher sales volume, both reported declines in H1 FY23 profit from H1 FY22.

For feed and industrial products, this was mainly due to much lower margins for the mid and downstream tropical oils operations. For food products, this was due to unfavourable sales mix, lower sales volume from its consumer products and weaker margins, because of high feedstock costs for the flour business. For the H1 FY23, 52 per cent of the revenue was reported to China.

Wilmar International also announced last week that Wilmar’s board of directors had appointed its independent non-executive director Jessica Cheam as a member of its Board Sustainability Committee, with effect from Oct 1, 2023.

QAF

Between Sep 13 and Sep 15, QAF joint group managing director and executive director Lin Kejian acquired 945,600 shares at an average price of S$0.824 per share. With a consideration of S$779,026 this increased Lin’s total interest in QAF from 48.82 per cent to 48.98 per cent. This followed his acquisition of 344,200 shares on Sep 12 at S$0.804 per share and 1,018,200 shares at S$0.815 per share between Aug 25 and Aug 29. Lin has been joint group managing director of the QAF Group since January 2017.

From the end of July to Sep 21, QAF has seen its share price add 3.1 per cent, with dividends boosting the total return to 4.4 per cent, while the stock’s average daily trading turnover has tripled compared to the first seven months of 2023.

First REIT

On Sep 18, First Reit Management independent director Martin Lechner acquired 796,900 units of First Reit at S$0.21 per unit. With a consideration of S$167,349, this increased his direct interest in the Reit from 0.24 per cent to 0.28 per cent. Lechner has been a director of First Reit Management since January 2018. He is also the founding partner and chief investment officer, Corecam.

The portfolio of First Reit encompasses a diverse portfolio of yield-accretive healthcare and healthcare-related real estate assets in Indonesia, Japan, and Singapore. For its H1 FY23 (ended Jun 30), First Reit’s rental and other income grew to S$54 million, a 0.4 per cent increase from H1 FY22.

This was mainly due to a full half-year rental income contribution from 12 Japan nursing homes acquired from sponsor OUE Healthcare in March 2022 and two additional Japan nursing homes acquired from third parties in September 2022.

First Reit Management executive director and CEO Victor Tan noted that global economic uncertainties have brought about a challenging business environment, but the Trust has grown in resilience through the early refinancing of debt and the ongoing diversification of its geographical and tenant mix. This is in line with First Reit’s 2.0 Growth Strategy, a key thrust of which is to strengthen its capital structure to remain resilient by diversifying funding sources and continuing to optimise its financial position.

As part of the First Reit 2.0 Growth Strategy, First Reit completed an early refinancing of a Japanese yen-denominated Tokutei Mokuteki Kaisha bond with a new onshore banking relationship in Q2 FY23.

Baker Technology

On Sep 19, Baker Technology executive director Benety Chang acquired 67,700 shares at an average price of S$0.545 per share. With a consideration of S$36,897, this increased his total interest in the company from 55.73 per cent to 55.77 per cent. He is the major shareholder of the company and was last re-elected as director on Apr 28, 2023.

He was previously director and CEO of Baker Technology from May 2000 to December 2018. He has extensive experience in the offshore oil and gas industry, and he was the major founding shareholder and CEO of PPL Shipyard until his resignation in July 2012.

The principal activities of Baker Technology are investment holding and the provision of specialised marine offshore equipment and services for the oil and gas industry.

Tai Sin Electric

On Sep 19, Tai Sin Electric chairman, non-executive and non-independent director Bobby Lim Chye Huat acquired 135,700 shares at S$0.40 per share. With a consideration of S$54,280, this increased Lim’s interest in Tai Sin Electric from 6.63 per cent to 6.66 per cent. This followed his acquisition of 51,000 shares at S$0.40 per share between Sep 7 and Sep 13.

JB Foods

On Sep 15, JB Foods non-independent, non-executive director and vice-chairman Goi Seng Hui acquired 50,000 shares at S$0.50 per share. With a consideration of S$25,000, the acquisition increased his total interest in the company from 24.60 per cent to 24.62 per cent. Goi also acquired 100,000 shares on Sep 14 at S$0.50 per share.

JB Foods is a major cocoa ingredients producer with operations spanning Asia-Pacific, Europe, North America and West Africa, and a cocoa bean processing capacity of 180,000 tonnes per year. For its H1 FY23 (ended Jun 30), the group registered revenue of US$271.2 million, fuelled by growth in demand for cocoa ingredients, which saw a marked increase in the higher shipment volume.

The gross profits increased by 66.3 per cent from H1 FY22 mainly due to normalisation of the processing margin post pandemic and improvement in global supply chain situation.

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