Institutions were net sellers of Singapore stocks over the four trading sessions to Jun 20, with S$152.1 million of net institutional outflow, as 22 primary-listed companies conducted buybacks with a total consideration of S$46.3 million.

OCBC led the buyback consideration tally for the abbreviated four-session week, acquiring 1.125 million shares at an average price of S$14.21 per share.

Its share buyback programme is a part of its strategic capital management, where purchased shares are held as treasury shares.

These shares are accounted for as a reduction in share capital and can be used for various purposes, including cancellation, sale, or fulfilling commitments under employee share schemes.

In its 2023 financial year (ended Dec 31), OCBC bought 16.4 million shares at a cost of S$205 million and used 15.6 million treasury shares to satisfy employee share scheme obligations.

Among the contingent of primary-listed companies not on the Straits Times Index (STI) that conducted buybacks over the four sessions, iFAST Corp led the consideration tally with 109,100 shares acquired at an average price of S$7.30 per share.

iFAST maintains that its buybacks are one method through which the return on equity of the group may be enhanced. It adds that the programme can serve as a mechanism to facilitate the return of surplus cash over and above its ordinary capital requirements in an expedient and cost-efficient manner.

Digital Core Reit (real estate investment trust) Management also acquired 2,164,400 units of Digital Core Reit over the four sessions.

Leading the net institutional outflow over the four sessions were DBS, Seatrium, Yangzijiang Shipbuilding, OCBC, CapitaLand Ascendas Reit, Keppel, Singapore Airlines, CapitaLand Integrated Commercial Trust, Singapore Exchange, and Thai Beverage.

Meanwhile Singtel, Jardine Cycle & Carriage, Mapletree Logistics Trust, Great Eastern, Sembcorp Industries, Golden Agri-Resources, CapitaLand Investment, Sats, Yoma Strategic Holdings : and Suntec Reit led the net institutional inflow.

The four trading sessions saw more than 80 director interests and substantial shareholdings filed for close to 30 primary-listed stocks.

Directors or chief executive officers filed 14 acquisitions, and one disposal, while substantial shareholders filed three acquisitions and two disposals.

Raffles Medical Group

Between Jun 13 and 19, Raffles Medical Group executive chairman Loo Choon Yong acquired 2.7 million shares at an average price of S$1 per share. This increased his total interest from 54.58 per cent to 54.72 per cent.

Since, late February, Dr Loo has been gradually increasing his total interest in the stock from 53.02 per cent.

LMS Compliance

Between Jun 13 and 14, Fitcorp Value acquired a total of 191,800 shares at an average price of S$0.345 per share.

This increased the aggregate deemed interest of executive director and CEO, Ooi Shu Geok, and executive director and chief development officer, Chong Moi Me, in the Catalist-listed company from 82.99 per cent to 83.21 per cent.

Both Dr Ooi and Chong are deemed interested in all the shares of the company held by Louis May and Fitcorp Value.

LMS Compliance specialises in laboratory testing, certification, and assurance services, with a presence in Malaysia and Singapore.

For over 15 years, the company has offered a range of services, including testing and assessment, certification, trading, the distribution of conformity assessment technology, as well as assurance, validation, and verification.

Dr Ooi primarily oversees the business development activities and operations and leads the strategic direction of the group. As chief development officer, Chong is responsible for the growth of the group’s business, developing business strategies and exploring opportunities.

For its FY23 (ended Dec 31), LMS Compliance reported an 11.9 per cent increase in revenue, amounting to RM20.9 million (S$6.01 million). This growth was primarily driven by the laboratory testing services, which saw a revenue boost from RM17.9 million in FY22 to RM20 million in FY23.

The earnings per share also more than doubled from FY22, to 6.27 sen. The positive operating cash flow of RM6.1 million and net cash position of RM14.5 million, as at Dec 31, position the group favourably for future expansion and capitalising on new opportunities.

On May 30, the group announced that it had formed a collaboration with Hashstacs (Stacs), a company specialising in environmental, social and governance (ESG) data and technology. This collaboration aims to explore the integration of ESG-related data within Stacs’ ESGpedia platform, potentially enhancing the accessibility and management of ESG metrics.

Dr Ooi maintained in April that the management team continues to identify and assess potential growth opportunities, including synergistic acquisitions and collaborations in China, Singapore, and Indonesia.

The group also noted in 2023 that LMS Compliance had about 80 per cent of its revenue from repeat customers in the testing and assessment segment and it is not dependent on any single client or industry for the testing services.

As at Jun 20, the LMS Compliance stock has generated a 38.1 per cent total return from its initial offer price, and Dec 1, 2022, debut. The stock also maintains a return on equity ratio of 19.1 per cent, trailing dividend yield of 3.8 per cent, and price-to-earnings ratio of 19.2 times.

While the stock ranks outside the 300 most-traded stocks listed in Singapore this year, its average daily trading turnover has increased by more than 40 per cent from 2023 levels.

 Intraco

On Jun 14, Intraco executive chairman and director Mak Lye Mun bought 300,000 shares at an average price of S$0.293 per share. The married deal increased his direct interest in the company from 2.04 per cent to 2.3 per cent.

His preceding acquisition also saw 300,000 shares purchased in a married deal at an average price of S$0.296 per share on May 30.

Through its subsidiaries, Intraco specialises in the distribution and trading of plastic resins and liquor. The group has evolved and expanded its services over the years.

It also offers a comprehensive range of passive fire protection products and services and provides mobile radio infrastructure management services in Singapore.

Intraco also engages in corporate finance advisory, particularly in assets securitisation through digital assets and tokenisation.

Mak has over 30 years of experience in the banking industry. He was appointed executive chairman of Intraco in July 2022 and was previously independent non-executive chairman from April 2021. His executive role includes leading the group’s business and operations.

In FY23 (ended Dec 31), Intraco recorded a profit before tax of S$3.5 million, a turnaround from a loss of S$1.3 million in FY22.

The improvement was due to a S$3.2 million net reversal of allowance for impairment loss, enhanced balance sheet management, and effective cost management initiatives.

Placed on the SGX-ST watch list with effect from Jun 6, 2023, Intraco provided a quarterly update on its unaudited financial performance and financial position on May 9.

The group recorded an unaudited net profit before taxation of approximately S$140,000.

As at Mar 31, 2024, its net asset value was approximately S$62.3 million, and the net asset value per share was approximately S$0.55 per share.

The group’s total cash and cash equivalents and investments in short-term securities and corporate bonds was S$27.4 million and total loans and borrowings outstanding was S$16.1 million as at Mar 31, 2024.

On May 9, Intraco also proposed to dispose its passive fire protection business and proposed a capital reduction.

Union Steel Holdings 

On Jun 14, Union Steel Holdings executive director Ang Yew Chye acquired 30,000 shares at S$0.67 per share.

With a consideration of S$20,100, this increased his direct interest in the multi-business investment holding company from 11.97 per cent to 12 per cent.

As a co-founder of the group, Ang has more than 30 years of experience in the scrap-metal recycling business.

Bonvests Holdings

On Jun 19, Bonvests Holdings executive chairman Henry Ngo bought 9,400 shares at S$0.96 per share. The purchases were made through Allsland, which is wholly owned by Ngo.

His total interest in Bonvests Holdings is 84.71 per cent. His preceding acquisition was on Jun 11, with 11,300 shares purchased also at S$0.96 per share.

Ngo has gradually increased his total interest in the group from 82.93 per cent in August 2018. The five revenue segments of the group are rental, hotel, industrial, investment and property development.

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

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