Directors' dealings drop dramatically despite one HK$775m disposal

Disposal value leaps thanks to one chief executive's sale of shares worth HK$775m

PUBLISHED : Monday, 04 February, 2013, 12:00am
UPDATED : Monday, 04 February, 2013, 3:57am

Insider transactions on the local stock market plunged last week, based on filings made to the stock exchange for the period January 28 to February 1.

Twelve companies reported 34 share purchases by their director, worth HK$7.01 million, during the week, and nine companies reported 25 disposals worth HK$800 million.

The buy figures were sharply down from the previous week's 18 companies which reported 60 purchases worth HK$89 million, while sales volumes were down from the previous week's 21 companies which reported 104 disposals, but up sharply in total value from the previous week's sales worth HK$218 million.

However, the big rise in the value of the sales transactions was almost singlehandedly accounted for by disposals by the chief executive of the plastic injection-moulding machine manufacturer Haitian Holdings, Zhang Jianming.

On January 24, Zhang sold 84.28 million shares at HK$9.20 each, worth a total of HK$775 million.

Leading the pack among buyers was Hengdeli Holdings, as the group recorded its highest purchase price since it started its buyback programme in 2008.

Among directors, an executive director of Karrie International bought shares for the first time after the stock rebounded by 52 per cent, and on the funds side, there were significant purchases in Tian An China Investments and Magic Holdings.

The mainland luxury goods retailer and wholesaler Hengdeli Holdings resumed buying back at sharply higher prices than its previous acquisitions, with 9.74 million shares purchased from January 31 to February 1 at an average of HK$2.72 each.

The group previously acquired 5.8 million shares from June to July 2012 at an average of HK$2.15 each and 7.8 million shares from October to December 2008 at an average of HK$1.27 each. The stock closed at HK$2.74 on Friday.

Silvia Chan Ming-mui recorded her first on-market trade in the computer casings and office automation products manufacturer Karrie International Holdings since her appointment as an executive director in November 2010, with an initial 500,000 shares purchased on January 30 at HK 27 cents each.

The purchases represented 0.03 per cent of the issued capital and were made on the back of a 52 per cent rebound in the share price since November 2012 from 17.8 HK cents.

The counter closed at 28 HK cents on Friday.

IGM Financial recorded its first notice in the property developer and investor Tian An China Investments since it became a substantial shareholder in May 2010, with a purchase-related filing on January 31 of 110,000 shares at HK$5.21 each. The trade increased IGM's holdings to 90.36 million shares, or 6 per cent.

The shares have seen a 49 per cent rebound in the share price since May 2012, from HK$3.49. The group previously reported an initial filing in May 2010 of 45,000 shares at HK$4.76 each, which raised its interest to 5 per cent. Overall, IGM's stake is up by 14.9 million shares, or 20 per cent, since that initial filing. The stock closed at HK$5.06 on Friday.

Baring Private Equity Asia acquired more shares in the mainland facial mask products manufacturer Magic Holdings, with 7.3 million shares purchased on January 29 at HK$3.03 each. The trade increased its holdings to 214.45 million shares, or 21 per cent. The shares have seen a 15 per cent drop in price since January, from HK$3.55, but are still up on September 2012's HK$2.58.

The group previously acquired 56.8 million shares from May to July 2012 at an average of HK$2.86 each. Baring became a substantial shareholder on January 19, 2012 after it acquired an initial 150 million shares, or 15 per cent of the issued capital, via off-market trade at an undisclosed price. The stock closed at HK$2.90 on that day.

Overall, Baring's stake is up by 64.1 million shares, or 43 per cent, since that initial filing in January 2012.

Co-founder and executive director Luo Yao Wen sold 800,000 shares from December 21 to 27 2012 at an average of HK$3.29 each, which lowered his stake to 39.1 million shares, or 3.83 per cent. Those are his first on-market sales since the stock was listed in September 2010.

The stock closed at HK$3.15 on Friday.

Robert Halili is managing director of Asia Insider