IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a>’s BeerCo is once again pre-marketing an SGX IPO to raise US$0.8-1.0 billion (vs US$2 billion previously), according to press reports. </li>
<li>In 1HFY2022, the group revenue returned to growth due to Vietnam. The easing of restrictions in Thailand should boost volumes in 2HFY2022.  </li>
<li>Creditably despite rising raw material costs, the margins remained steady helped by forward buying contracts. However, the unwinding of the forward contracts will likely lead to margin pressures in FY2023.</li>
</ul>



Thai Beverage (THBEV SP)’s BeerCo is once again pre-marketing an SGX IPO to raise US$0.8-1.0 billion (vs US$2 billion previously), according to press reports. 
In 1HFY2022, the group revenue returned to growth due to Vietnam. The easing of restrictions in Thailand should boost volumes in 2HFY2022.  
Creditably despite rising raw material costs, the margins remained steady helped by forward buying contracts. However, the unwinding of the forward contracts will likely lead to margin pressures in FY2023.


ThaiBev’s BeerCo IPO: Third Time’s the Charm?

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

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FOR the 5 trading sessions that spanned Jun 10 to 16, the Straits Times Index (STI) declined 3.5 per cent, with the FTSE China A50 Index gaining 1.2 per cent, the Hang Seng Index falling 4.5 per cent and the FTSE Bursa Malaysia KLCI sliding 2.2 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$166 million of net outflow, following the S$52 million of net outflow for the preceding 5 sessions. UOB, OCBC, Singapore Airlines, Thai Beverage and Keppel DC Reit led the net institutional outflows for the 5 sessions through to Jun 16.

 Share buybacks

 
There were 26 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 16, with a total consideration of S$122.8 million, more than doubling the previous week’s consideration tally. Wilmar International and Keppel Corporation led the consideration tally, buying back shares at average prices of S$4.08, and S$6.75 respectively.

 

Director and substantial shareholder transactions

 
The 5 trading sessions saw over 100 changes to director interests and substantial shareholdings filed for close to 50 primary-listed stocks. This included 19 company director acquisitions with 2 disposals filed, while substantial shareholders filed 15 acquisitions and 12 disposals.

 

AEM Holdings

 
The Employees Provident Fund Board’s (EPF) deemed interest in AEM Holdings (AEM) has once again crossed above the 5.00 per cent substantial shareholder threshold.  The EPF had reduced its deemed interest in AEM below the 5.00 per cent threshold on Feb 4 to 4.87 per cent when it sold some shares, but on Jun 9, it bought shares again and raised its deemed interest to 5.05 per cent.  EPF’s latest purchase of 550,000 shares at S$4.39 per share, is at a lower average price than the S$4.53 per share it had received when it sold shares and reduced its deemed interest in AEM to below the substantial shareholder threshold in February.

 

On Jun 16, AEM announced that it would create more than 300 additional jobs with the expansion of its Singapore, Malaysian and US operations. AEM’s Penang expansion will include an R&amp;D lab that will enable it to boost its R&amp;D capabilities, while it will also double its headcount in Malaysia to support the expansion, including new roles for technicians, engineers, customer support group, and supply chain management. AEM is also a Gold Sponsor and the sole sponsor of the SEMICON University Program at SEMICON SEA 2022, scheduled this week in Penang.

 

Separately, with effect from Jul 1, Andre Andonian will join the board of AEM as an independent director. At McKinsey &amp; Company, Andonian serves as a member of the global board, senior partner for the Singapore office, chairman of Japan and the managing partner for Korea. Back on May 5, AEM reported its highest quarterly revenue in its history at S$261.9 million for Q1 2022 (ended Mar 31), a 226.4 per cent year-on-year increase, while upwardly revising its FY22 revenue guidance to between S$700 million and S$750 million.

 

Mapletree Industrial Trust 

 
Between Jun 10 and 13, Mapletree Industrial Trust Management non-executive director Chua Tiow Chye acquired 250,000 units of Mapletree Industrial Trust (MIT) at an average price of S$2.49 per unit.

 
With a consideration of S$621,382, this increased his deemed interest from 0.05 per cent to 0.06 per cent. It followed his acquisition of 200,000 units at S$2.49 per unit on Feb 7 and 200,000 units at S$2.60 per unit on Jan 26.

 
Chua is also the deputy group CEO of Mapletree Investments, the sponsor of MIT. He focuses on driving the sponsor’s strategic initiatives including expanding and directing the sponsor’s international real estate investments and developments. He also directly oversees the sponsor’s global lodging sector as well as the private capital management function.

 
For the FY22 (ended Mar 31), MIT reported its gross revenue and net property income increased 36.4 per cent and 34.5 per cent year on year to S$610.1 million and S$472.0 million respectively. MIT owns 141 properties, comprising 85 properties in Singapore and 56 properties in North America, which includes 13 data centres in North America held through the joint venture with the sponsor.

 Uni-Asia Group

 
On Jun 13, Uni-Asia Group executive chairman Michio Tanamoto acquired 150,000 shares of the company for a consideration of S$156,000. At an average price of S$1.04 per share, this increased his total interest in the company from 3.24 per cent to 3.44 per cent. This closely followed his acquisition of 50,000 shares at S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 The Straits Trading Company

 
On Jun 13, The Straits Trading Company independent and non-executive director Tan Tiong Cheng acquired 30,000 shares of the company for a consideration of S$90,300, at an average price of S$3.01 per share. This increased his direct interest in the conglomerate-investment company from 0.03 per cent to 0.04 per cent. He is also an independent and non-executive director of UOL Group, the lead independent director of Heeton Holdings, and a non-executive independent director of Amara Holdings.

 
The same session also saw Straits Trading Company independent and non-executive director Chua Tian Chu acquire 7,000 shares of the company at S$3.00 per share.

 
Chua last acquired shares in the company in March, and both directors acquired shares in the company in January. 

 GKE Corporation

 
On Jun 15, GKE Corporation executive director and CEO Neo Cheow Hui acquired 500,000 shares of the company, for a consideration of S$52,000 at 10.4 cents per share. This increased his total interest in the provider of integrated warehousing and logistics solutions from 3.60 per cent to 3.67 per cent.

 
Neo has extensive experience in the warehousing and logistics industry which has played a pivotal role in developing high level strategies for the group and making major corporate investments over the last 20 years.

 Hong Fok Corporation

 
On Jun 10, Hong Fok Corporation executive director and joint CEO Cheong Sim Eng acquired 43,000 shares of the company, for a consideration of S$41,925 at 98.0 cents per share. Cheong maintains a 20.27 total interest in the property developer.

 
He is principally involved in the group’s overall operations and management, with greater emphasis in Singapore and he has over 37 years of experience in the property development business.

 Grand Venture Technology

 
Between Jun 13 and 15, Grand Venture Technology executive chairman Ricky Lee Tiam Nam acquired 50,000 shares of the company at an average price of 76.8 cents per share. With a consideration of S$38,375, this increased his direct interest in the innovative precision manufacturer from 15.33 per cent to 15.34 per cent. 

 
Responsible for the overall strategic direction and development of the group, Lee was one of the founding directors of the company.

 
He has over 38 years of experience in the manufacturing, assembly/servicing and precision engineering industries, beginning his career in 1982 as a machinist in Pan-World Precision Engineering.

 
On Jun 15, GVT executive director and CEO Julian Ng Wai Yuen also acquired 10,000 shares at an average price of 76.5 cents per share. This increased his direct interest in the company from 3.54 per cent to 3.55 per cent. Ng has more than 20 years of experience in the manufacturing and precision engineering industries.

 
In early May, GVT reported 19.5 per cent year-on-year growth in Ebitda and 8.9 per cent growth in net profit after tax for Q1 FY2022 (ended Mar 31), on the back of a 41.0 per cent revenue increase from S$23.0 million in Q1 FY2021 to S$32.5 million in Q1 FY2022.

 
Lee noted with the results that robust demand from the semiconductor industry saw GVT make good progress in its discussions with potential customers engaged in the manufacture of metrology and inspection, etching, and wafer deposition equipment. Lee added that when fully onboarded, these customers are expected to be the key drivers for the front-end semiconductor activities of GVT in the near future. In Q1 FY2022, the semiconductor sector contributed 67.2 per cent to the group’s total revenue, comparable with the 71.1 per cent contribution in FY21 and 68.7 per cent contribution in 2020.

 Oxley Holdings

 
Between Jun 14 and 15, Oxley Holdings executive director and deputy CEO Eric Low See Ching acquired 100,000 shares of the company at 17.1 cents per share.

 
Low maintains a 28.13 per cent direct interest in the firm and is responsible for the operation of the group including sales and marketing, project development, business development and financial management. He also assists the CEO in charting and executing strategic plans.

 Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/buybacks-surge-mapletrees-chua-tiow-chye-adds-to-mit-stake"> read </a>the original version.
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    Share Buybacks


FOR the 5 trading sessions that spanned Jun 10 to 16, the Straits Times Index (STI) declined 3.5 per cent, with the FTSE China A50 Index gaining 1.2 per cent, the Hang Seng Index falling 4.5 per cent and the FTSE Bursa Malaysia KLCI sliding 2.2 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$166 million of net outflow, following the S$52 million of net outflow for the preceding 5 sessions. UOB, OCBC, Singapore Airlines, Thai Beverage and Keppel DC Reit led the net institutional outflows for the 5 sessions through to Jun 16.

 Share buybacks

 
There were 26 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 16, with a total consideration of S$122.8 million, more than doubling the previous week’s consideration tally. Wilmar International and Keppel Corporation led the consideration tally, buying back shares at average prices of S$4.08, and S$6.75 respectively.

 

Director and substantial shareholder transactions

 
The 5 trading sessions saw over 100 changes to director interests and substantial shareholdings filed for close to 50 primary-listed stocks. This included 19 company director acquisitions with 2 disposals filed, while substantial shareholders filed 15 acquisitions and 12 disposals.

 

AEM Holdings

 
The Employees Provident Fund Board’s (EPF) deemed interest in AEM Holdings (AEM) has once again crossed above the 5.00 per cent substantial shareholder threshold.  The EPF had reduced its deemed interest in AEM below the 5.00 per cent threshold on Feb 4 to 4.87 per cent when it sold some shares, but on Jun 9, it bought shares again and raised its deemed interest to 5.05 per cent.  EPF’s latest purchase of 550,000 shares at S$4.39 per share, is at a lower average price than the S$4.53 per share it had received when it sold shares and reduced its deemed interest in AEM to below the substantial shareholder threshold in February.

 

On Jun 16, AEM announced that it would create more than 300 additional jobs with the expansion of its Singapore, Malaysian and US operations. AEM’s Penang expansion will include an R&amp;D lab that will enable it to boost its R&amp;D capabilities, while it will also double its headcount in Malaysia to support the expansion, including new roles for technicians, engineers, customer support group, and supply chain management. AEM is also a Gold Sponsor and the sole sponsor of the SEMICON University Program at SEMICON SEA 2022, scheduled this week in Penang.

 

Separately, with effect from Jul 1, Andre Andonian will join the board of AEM as an independent director. At McKinsey &amp; Company, Andonian serves as a member of the global board, senior partner for the Singapore office, chairman of Japan and the managing partner for Korea. Back on May 5, AEM reported its highest quarterly revenue in its history at S$261.9 million for Q1 2022 (ended Mar 31), a 226.4 per cent year-on-year increase, while upwardly revising its FY22 revenue guidance to between S$700 million and S$750 million.

 

Mapletree Industrial Trust 

 
Between Jun 10 and 13, Mapletree Industrial Trust Management non-executive director Chua Tiow Chye acquired 250,000 units of Mapletree Industrial Trust (MIT) at an average price of S$2.49 per unit.

 
With a consideration of S$621,382, this increased his deemed interest from 0.05 per cent to 0.06 per cent. It followed his acquisition of 200,000 units at S$2.49 per unit on Feb 7 and 200,000 units at S$2.60 per unit on Jan 26.

 
Chua is also the deputy group CEO of Mapletree Investments, the sponsor of MIT. He focuses on driving the sponsor’s strategic initiatives including expanding and directing the sponsor’s international real estate investments and developments. He also directly oversees the sponsor’s global lodging sector as well as the private capital management function.

 
For the FY22 (ended Mar 31), MIT reported its gross revenue and net property income increased 36.4 per cent and 34.5 per cent year on year to S$610.1 million and S$472.0 million respectively. MIT owns 141 properties, comprising 85 properties in Singapore and 56 properties in North America, which includes 13 data centres in North America held through the joint venture with the sponsor.

 Uni-Asia Group

 
On Jun 13, Uni-Asia Group executive chairman Michio Tanamoto acquired 150,000 shares of the company for a consideration of S$156,000. At an average price of S$1.04 per share, this increased his total interest in the company from 3.24 per cent to 3.44 per cent. This closely followed his acquisition of 50,000 shares at S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 The Straits Trading Company

 
On Jun 13, The Straits Trading Company independent and non-executive director Tan Tiong Cheng acquired 30,000 shares of the company for a consideration of S$90,300, at an average price of S$3.01 per share. This increased his direct interest in the conglomerate-investment company from 0.03 per cent to 0.04 per cent. He is also an independent and non-executive director of UOL Group, the lead independent director of Heeton Holdings, and a non-executive independent director of Amara Holdings.

 
The same session also saw Straits Trading Company independent and non-executive director Chua Tian Chu acquire 7,000 shares of the company at S$3.00 per share.

 
Chua last acquired shares in the company in March, and both directors acquired shares in the company in January. 

 GKE Corporation

 
On Jun 15, GKE Corporation executive director and CEO Neo Cheow Hui acquired 500,000 shares of the company, for a consideration of S$52,000 at 10.4 cents per share. This increased his total interest in the provider of integrated warehousing and logistics solutions from 3.60 per cent to 3.67 per cent.

 
Neo has extensive experience in the warehousing and logistics industry which has played a pivotal role in developing high level strategies for the group and making major corporate investments over the last 20 years.

 Hong Fok Corporation

 
On Jun 10, Hong Fok Corporation executive director and joint CEO Cheong Sim Eng acquired 43,000 shares of the company, for a consideration of S$41,925 at 98.0 cents per share. Cheong maintains a 20.27 total interest in the property developer.

 
He is principally involved in the group’s overall operations and management, with greater emphasis in Singapore and he has over 37 years of experience in the property development business.

 Grand Venture Technology

 
Between Jun 13 and 15, Grand Venture Technology executive chairman Ricky Lee Tiam Nam acquired 50,000 shares of the company at an average price of 76.8 cents per share. With a consideration of S$38,375, this increased his direct interest in the innovative precision manufacturer from 15.33 per cent to 15.34 per cent. 

 
Responsible for the overall strategic direction and development of the group, Lee was one of the founding directors of the company.

 
He has over 38 years of experience in the manufacturing, assembly/servicing and precision engineering industries, beginning his career in 1982 as a machinist in Pan-World Precision Engineering.

 
On Jun 15, GVT executive director and CEO Julian Ng Wai Yuen also acquired 10,000 shares at an average price of 76.5 cents per share. This increased his direct interest in the company from 3.54 per cent to 3.55 per cent. Ng has more than 20 years of experience in the manufacturing and precision engineering industries.

 
In early May, GVT reported 19.5 per cent year-on-year growth in Ebitda and 8.9 per cent growth in net profit after tax for Q1 FY2022 (ended Mar 31), on the back of a 41.0 per cent revenue increase from S$23.0 million in Q1 FY2021 to S$32.5 million in Q1 FY2022.

 
Lee noted with the results that robust demand from the semiconductor industry saw GVT make good progress in its discussions with potential customers engaged in the manufacture of metrology and inspection, etching, and wafer deposition equipment. Lee added that when fully onboarded, these customers are expected to be the key drivers for the front-end semiconductor activities of GVT in the near future. In Q1 FY2022, the semiconductor sector contributed 67.2 per cent to the group’s total revenue, comparable with the 71.1 per cent contribution in FY21 and 68.7 per cent contribution in 2020.

 Oxley Holdings

 
Between Jun 14 and 15, Oxley Holdings executive director and deputy CEO Eric Low See Ching acquired 100,000 shares of the company at 17.1 cents per share.

 
Low maintains a 28.13 per cent direct interest in the firm and is responsible for the operation of the group including sales and marketing, project development, business development and financial management. He also assists the CEO in charting and executing strategic plans.

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



Buybacks surge, Mapletree’s Chua Tiow Chye adds to MIT stake

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>IPO volumes remain subdued across the region, although a number of deals are said to be looking to launch soon.</li>
<li>Given the recent market volatility, there were no large placements this week.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
IPO volumes remain subdued across the region, although a number of deals are said to be looking to launch soon.
Given the recent market volatility, there were no large placements this week.


ECM Weekly (19th June 2022) - Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards

Digilife Technologies Limited / Equity Bottom-Up

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FOR the 5 trading sessions that spanned Jun 3 to 9, the Straits Times Index (STI) declined 0.5 per cent, with the FTSE China A50 Index adding 3.0 per cent, the Hang Seng Index gaining 4.5 per cent and the FTSE Bursa Malaysia KLCI falling 1.9 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$52 million of net outflow, following the S$102 million of net outflow for the preceding 5 sessions. UOB, Singtel, DBS, Yangzijiang Financial Holding and Thai Beverage led the net institutional outflows for the 5 sessions through to Jun 9.

 Share buybacks

 
There were 23 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 9, with a total consideration of S$53,390,997, a weekly consideration tally similar to the preceding 3 weeks’.

Keppel Corporation again led the consideration tally with 3,035,800 shares bought at an average price of S$6.89 per share. This brought the total number of shares purchased on its current mandate to 1.19 per cent of its issued shares (excluding treasury shares).

 
On Jun 8, Yangzijiang Financial Holding announced the establishment of a S$200 million share buyback programme pursuant to the share buyback mandate granted by shareholders at the EGM held the same day. The company also noted that purpose of the programme is to increase shareholder value and improve the return of equity of the group.

 Director and substantial shareholder transactions

 
The 5 trading sessions saw close 90 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 8 company director acquisitions with two disposals filed, while substantial shareholders filed 11 acquisitions and 8 disposals.

Back on Jun 2, Olam Group executive director, co-founder and group CEO Sunny Verghese acquired 500,000 shares of the company at an average price of S$1.56 per share, with a consideration of S$780,400, increasing his direct interest in Olam Group from 4.29 per cent to 4.31 per cent.

 
Also on Jun 2, Digilife Technologies chairman and non-independent non-executive director Bhupendra Kumar Modi increased his total interest in the company from 52.38 per cent to 53.99 per cent. In a share purchase agreement dated Jun 2, Spice Bulls acquired 217,105 Digilife Technologies shares from Maneesh Tripathi for a consideration of S$577,500, at S$2.66 per share. Spice Bulls is 100 per cent held by Smart Co Holding, which in turn is 100 per cent held by Modi. Tripathi resigned as non-independent non-executive director of Digilife Technologies effective May 31.

 Yangzijiang Shipbuilding Holdings

 
On Jun 6, Yangzijiang Shipbuilding Holdings substantial shareholder T. Rowe Price Associates, increased its deemed interest in the company to above the 8.0 per cent threshold. Acquiring 5,819,100 shares in the Jiangsu-based shipbuilder, at an average price of 99.9 cents per share increased its deemed interest from 7.92 per cent to 8.06 per cent. Previously T. Rowe Price Associates increased its deemed interest above the 7.00 per cent threshold on Dec 7 and above the 6.00 per cent threshold on Apr 8, 2021.

 
According to data from Bloomberg, its deemed interest in Yangzijiang Shipbuilding Holdings is spread across multiple portfolios such as the T Rowe Price Emerging Markets Discovery Stock Fund, T Rowe Price International Discovery Fund and T Rowe Price International Value Equity Fund.

 
In 2021, Yangzijiang Shipbuilding Holdings secured record order wins for 124 vessels with a total contract value of US$7.41 billion. Apart from achieving the group’s highest order wins since its listing on SGX in 2021, the company made the strategic decision to focus on new-build profitability and prioritised on building containerships and clean energy vessels. As of the end 2021, Yangzijiang Shipbuilding Holdings had an existing orderbook of US$8.50 billion for 157 vessels, with containerships accounting for US$7.08 billion or 83 per cent of total existing contract value. Yangzijiang Shipbuilding Holdings was the STI’s strongest performer in 2021 and has ranked as the second strongest STI constituent after Jardine Cycle &amp; Carriage in the 2022 year through to Jun 9. 

 Uni-Asia Group

 
On Jun 9, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares of the company for a consideration of S$54,250. At an average price of S$1.09 per share, this increased his total interest in the company from 3.18 per cent to 3.24 per cent.

 
His preceding acquisitions were on Aug 20, with 30,000 shares acquired at S$1.05 per share and May 21, 2021, with 50,000 shares acquired at 66.5 cents per share.

 
Tanamoto was appointed executive chairman of the Uni-Asia Group in April 2020. He was previously appointed as chairman and CEO in April 2014, before he relinquished his position as CEO in 2020 as part of the group’s succession planning. He is one of the 4 founders who established the company in 1997 and has been a director since then. He has close to 40 years of experience in financial sector, having been based in Japan, Hong Kong and Singapore.

 
In April, Tanamoto noted that as a producer of alternative investment opportunities, Uni-Asia Group’s ongoing mission is to constantly create new investment products and develop new investors sources to increase its assets under management as well and strengthen its investment portfolio to achieve sustainable long-term growth. With 2022 also marking the group’s 25th anniversary, Tanamoto added that the group’s balance sheet is now stronger than before, following its deleveraging strategy, with a strong cashflow, as a result of the strong shipping market.

 Megachem

 
On Jun 3, Megachem managing director Sidney Chew Choon Tee acquired 93,000 shares of the company at 46.5 cents per share. With a consideration of S$43,245, this increased his total interest in the one-stop specialty chemical solutions provider from 35.65 per cent to 35.72 per cent. His preceeding acquisitions were on Apr 13 with 200 shares acquired at 45.5 cents per share and between Mar 15 and 16, with 20,000 shares acquired at 45.0 cents per share. 

 
The company reported back in February that its net profit after tax in FY21 (ended Dec 31) increased 52.0 per cent to S$8.0 million on the back of a 32.0 per cent growth in revenue to S$138.9 million. Chew noted that the group achieved a new record in revenue, as business sentiments improved, and demand recovered, with higher sales volumes and chemical prices supporting a rebound in revenue in FY21 to better than pre-Covid levels.

 
In response to a question on the sensitivity of revenue to oil prices in an online Q&amp;A with Investors in March, Megachem management noted that demand for specialty chemicals had been less sensitive to price fluctuations. The management team reasoned that oil prices had staged a remarkable rebound since the later part of 2020 which had pushed freight rates and chemical prices higher. However, the team noted that specialty chemicals, though not immune to oil price fluctuations, are less susceptible in comparison to bulk commodity chemicals, since they are a more downstream product and usage in the finished product is smaller.

 GSH Corporation

 
Between Jun 2 and 8, GSH Corporation executive chairman Sam Goi Seng Hui acquired 195,200 shares of the company at an average price of 16.7 cents per share, with a consideration of S$32,668. This increased his total interest in the property developer, hotel and resort operator from 63.62 per cent to 63.63 per cent. Goi’s preceding acquisition was on Oct 8, with 99,800 shares acquired at 16.8 cents per share. He has gradually increased his total interest in GSH Corporation from 47.97 per cent in July 2015. Goi was appointed to the GSH Corporation board in July 2012.

 
He is also the executive chairman of Tee Yih Jia Group, in addition to SGX-listed companies Hanwell Holdings and Tat Seng Packaging Group.  Goi also serves on the board of Envictus International Holdings, JB Foods and Tung Lok Restaurants (2000).  For its FY21 (ended Dec 31), GSH posted an attributable net loss of S$21.0 million, which was a decline of 49 per cent from an attributable net loss of S$14.1 million in FY20, with group revenue declining 20 per cent from S$120.2 million in FY20 to S$95.8 million in FY21.

 
GSH Corporation is a growing property developer in South-east Asia, with 5 properties under development in Malaysia and China. It also owns and operates the Sutera Harbour Resort in Kota Kinabalu, comprising 2 5-star hotels, a 104-berth marina and a 27-hole championship golf course, and the Sutera@Mantanani Resort on the Mantanani Islands in Sabah. In FY21, 67 per cent of GSH Corporation’s revenue was reported to Malaysia, with the balance reported to China.

 Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/t-rowe-price-increases-its-yzj-shipbuilding-interest-to-above-8"> read </a>the original version.
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    Share Buybacks


FOR the 5 trading sessions that spanned Jun 3 to 9, the Straits Times Index (STI) declined 0.5 per cent, with the FTSE China A50 Index adding 3.0 per cent, the Hang Seng Index gaining 4.5 per cent and the FTSE Bursa Malaysia KLCI falling 1.9 per cent. 

 
Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$52 million of net outflow, following the S$102 million of net outflow for the preceding 5 sessions. UOB, Singtel, DBS, Yangzijiang Financial Holding and Thai Beverage led the net institutional outflows for the 5 sessions through to Jun 9.

 Share buybacks

 
There were 23 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 9, with a total consideration of S$53,390,997, a weekly consideration tally similar to the preceding 3 weeks’.

Keppel Corporation again led the consideration tally with 3,035,800 shares bought at an average price of S$6.89 per share. This brought the total number of shares purchased on its current mandate to 1.19 per cent of its issued shares (excluding treasury shares).

 
On Jun 8, Yangzijiang Financial Holding announced the establishment of a S$200 million share buyback programme pursuant to the share buyback mandate granted by shareholders at the EGM held the same day. The company also noted that purpose of the programme is to increase shareholder value and improve the return of equity of the group.

 Director and substantial shareholder transactions

 
The 5 trading sessions saw close 90 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 8 company director acquisitions with two disposals filed, while substantial shareholders filed 11 acquisitions and 8 disposals.

Back on Jun 2, Olam Group executive director, co-founder and group CEO Sunny Verghese acquired 500,000 shares of the company at an average price of S$1.56 per share, with a consideration of S$780,400, increasing his direct interest in Olam Group from 4.29 per cent to 4.31 per cent.

 
Also on Jun 2, Digilife Technologies chairman and non-independent non-executive director Bhupendra Kumar Modi increased his total interest in the company from 52.38 per cent to 53.99 per cent. In a share purchase agreement dated Jun 2, Spice Bulls acquired 217,105 Digilife Technologies shares from Maneesh Tripathi for a consideration of S$577,500, at S$2.66 per share. Spice Bulls is 100 per cent held by Smart Co Holding, which in turn is 100 per cent held by Modi. Tripathi resigned as non-independent non-executive director of Digilife Technologies effective May 31.

 Yangzijiang Shipbuilding Holdings

 
On Jun 6, Yangzijiang Shipbuilding Holdings substantial shareholder T. Rowe Price Associates, increased its deemed interest in the company to above the 8.0 per cent threshold. Acquiring 5,819,100 shares in the Jiangsu-based shipbuilder, at an average price of 99.9 cents per share increased its deemed interest from 7.92 per cent to 8.06 per cent. Previously T. Rowe Price Associates increased its deemed interest above the 7.00 per cent threshold on Dec 7 and above the 6.00 per cent threshold on Apr 8, 2021.

 
According to data from Bloomberg, its deemed interest in Yangzijiang Shipbuilding Holdings is spread across multiple portfolios such as the T Rowe Price Emerging Markets Discovery Stock Fund, T Rowe Price International Discovery Fund and T Rowe Price International Value Equity Fund.

 
In 2021, Yangzijiang Shipbuilding Holdings secured record order wins for 124 vessels with a total contract value of US$7.41 billion. Apart from achieving the group’s highest order wins since its listing on SGX in 2021, the company made the strategic decision to focus on new-build profitability and prioritised on building containerships and clean energy vessels. As of the end 2021, Yangzijiang Shipbuilding Holdings had an existing orderbook of US$8.50 billion for 157 vessels, with containerships accounting for US$7.08 billion or 83 per cent of total existing contract value. Yangzijiang Shipbuilding Holdings was the STI’s strongest performer in 2021 and has ranked as the second strongest STI constituent after Jardine Cycle &amp; Carriage in the 2022 year through to Jun 9. 

 Uni-Asia Group

 
On Jun 9, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares of the company for a consideration of S$54,250. At an average price of S$1.09 per share, this increased his total interest in the company from 3.18 per cent to 3.24 per cent.

 
His preceding acquisitions were on Aug 20, with 30,000 shares acquired at S$1.05 per share and May 21, 2021, with 50,000 shares acquired at 66.5 cents per share.

 
Tanamoto was appointed executive chairman of the Uni-Asia Group in April 2020. He was previously appointed as chairman and CEO in April 2014, before he relinquished his position as CEO in 2020 as part of the group’s succession planning. He is one of the 4 founders who established the company in 1997 and has been a director since then. He has close to 40 years of experience in financial sector, having been based in Japan, Hong Kong and Singapore.

 
In April, Tanamoto noted that as a producer of alternative investment opportunities, Uni-Asia Group’s ongoing mission is to constantly create new investment products and develop new investors sources to increase its assets under management as well and strengthen its investment portfolio to achieve sustainable long-term growth. With 2022 also marking the group’s 25th anniversary, Tanamoto added that the group’s balance sheet is now stronger than before, following its deleveraging strategy, with a strong cashflow, as a result of the strong shipping market.

 Megachem

 
On Jun 3, Megachem managing director Sidney Chew Choon Tee acquired 93,000 shares of the company at 46.5 cents per share. With a consideration of S$43,245, this increased his total interest in the one-stop specialty chemical solutions provider from 35.65 per cent to 35.72 per cent. His preceeding acquisitions were on Apr 13 with 200 shares acquired at 45.5 cents per share and between Mar 15 and 16, with 20,000 shares acquired at 45.0 cents per share. 

 
The company reported back in February that its net profit after tax in FY21 (ended Dec 31) increased 52.0 per cent to S$8.0 million on the back of a 32.0 per cent growth in revenue to S$138.9 million. Chew noted that the group achieved a new record in revenue, as business sentiments improved, and demand recovered, with higher sales volumes and chemical prices supporting a rebound in revenue in FY21 to better than pre-Covid levels.

 
In response to a question on the sensitivity of revenue to oil prices in an online Q&amp;A with Investors in March, Megachem management noted that demand for specialty chemicals had been less sensitive to price fluctuations. The management team reasoned that oil prices had staged a remarkable rebound since the later part of 2020 which had pushed freight rates and chemical prices higher. However, the team noted that specialty chemicals, though not immune to oil price fluctuations, are less susceptible in comparison to bulk commodity chemicals, since they are a more downstream product and usage in the finished product is smaller.

 GSH Corporation

 
Between Jun 2 and 8, GSH Corporation executive chairman Sam Goi Seng Hui acquired 195,200 shares of the company at an average price of 16.7 cents per share, with a consideration of S$32,668. This increased his total interest in the property developer, hotel and resort operator from 63.62 per cent to 63.63 per cent. Goi’s preceding acquisition was on Oct 8, with 99,800 shares acquired at 16.8 cents per share. He has gradually increased his total interest in GSH Corporation from 47.97 per cent in July 2015. Goi was appointed to the GSH Corporation board in July 2012.

 
He is also the executive chairman of Tee Yih Jia Group, in addition to SGX-listed companies Hanwell Holdings and Tat Seng Packaging Group.  Goi also serves on the board of Envictus International Holdings, JB Foods and Tung Lok Restaurants (2000).  For its FY21 (ended Dec 31), GSH posted an attributable net loss of S$21.0 million, which was a decline of 49 per cent from an attributable net loss of S$14.1 million in FY20, with group revenue declining 20 per cent from S$120.2 million in FY20 to S$95.8 million in FY21.

 
GSH Corporation is a growing property developer in South-east Asia, with 5 properties under development in Malaysia and China. It also owns and operates the Sutera Harbour Resort in Kota Kinabalu, comprising 2 5-star hotels, a 104-berth marina and a 27-hole championship golf course, and the Sutera@Mantanani Resort on the Mantanani Islands in Sabah. In FY21, 67 per cent of GSH Corporation’s revenue was reported to Malaysia, with the balance reported to China.

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



T Rowe Price increases its YZJ Shipbuilding interest to above 8%

Tsingtao Brewery Co Ltd H / Equity Capital Markets

<ul>
<li>Fosun aims to raise around US$527m via selling a 3.5% stake in Tsingtao.</li>
<li>This is not the first selldown by Fosun, we have covered three prior deals in Dec 2020, Apr 2021 and Dec 2021.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


Fosun aims to raise around US$527m via selling a 3.5% stake in Tsingtao.
This is not the first selldown by Fosun, we have covered three prior deals in Dec 2020, Apr 2021 and Dec 2021.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Tsingtao Placement - Ending the Selldowns with the Biggest One so Far

Singapore

Thai Beverage Public Company Limited produces a wide range of branded beer and spirits in Thailand.

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Thai Beverage (THBEV SP)

ThaiBev’s BeerCo IPO: Third Time’s the Charm?

BeerCo is once again pre-marketing an SGX IPO to raise US$0.8-1.0 billion. In this note, we look at the latest set of results and highlight the key...

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Buybacks surge, Mapletree’s Chua Tiow Chye adds to MIT stake

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ECM Weekly (19th June 2022) - Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

T Rowe Price increases its YZJ Shipbuilding interest to above 8%

FOR the 5 trading sessions that spanned Jun 3 to 9, the Straits Times Index (STI) declined 0.5 per cent, with the FTSE China...

Singapore Exchange Ltd (SGX)

Tsingtao Placement - Ending the Selldowns with the Biggest One so Far

Fosun aims to raise around US$527m via selling a 3.5% stake in Tsingtao. We have covered three other selldowns by Fosun before.

Sumeet Singh

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