Hong Kong company directors sell more shares in the last week

Buybacks slowed last week, though household products maker GOME made its first repurchase of shares in two years after a prolonged slide in the price

PUBLISHED : Sunday, 05 June, 2016, 3:18pm
UPDATED : Monday, 06 June, 2016, 12:21pm

The buying slowed while the selling among directors rose for the second straight week based on filings on the exchange from May 30 to June 3. A total of 33 companies recorded 188 purchases worth HK$182 million versus 17 firms with 78 disposals worth HK$96 million. The buy figures were down from the previous week’s 38 companies, 257 purchases and HK$290 million. The sales, on the other hand, were up from the previous week’s 10 firms, 50 disposals and HK$83 million.

Meanwhile, the buyback activity fell for the second straight week with 14 companies that posted 60 repurchases worth HK$179 million. The figures were down from the previous week’s 23 firms, 104 trades and HK$211 million.

There were several rare trades by companies and directors last week with buybacks in GOME Electrical Appliances and China Aluminium Cans Holdings, insider buys in 3SBio, Inc and China Dongxiang and a sale in C.banner International.

Household appliances and consumer electronic products retailer GOME Electrical Appliances bought back for the first time since May 2014 with 99.15 million shares purchased from May 30 to June 1 at HK$0.89 to HK$0.94 each, or an average of HK$0.914, each. The trades, which accounted for 23 per cent of the stock’s trading volume, were made on the back of the 39 per cent drop in the share price since November 2015 from HK$1.50. The counter is also down since May 2015 from HK$2.23. The acquisitions were also made after the Company announced on May 26 an 81 per cent drop in first quarter profit to 42.691 million yuan. The group previously acquired 74.53 million shares from April to May 2014 at HK$1.30 to HK$1.44 each or an average of HK$1.37 each and 519.2 million shares from January to February 2008 at an average of HK$4.31 each. The counter closed at HK$0.91 on Friday.

Monobloc aluminium aerosol cans manufacturer China Aluminium Cans Holdings recorded its first buybacks since listing in July 2013 with 188,000 shares purchased on May 27 at HK$1.30 each and a further 740,000 shares on June 3 at HK$1.54 each. The trades were made after the stock fell by as much as 28 per cent from HK$1.80 in January. The counter is also sharply down since May 2015 from HK$2.74. Despite the sharp fall in the share price, the group’s buyback prices were higher than the initial public offering price (IPO) of HK$1.20 to HK$1.00. The stock closed at HK$1.59 on Friday.

Chief Financial Officer Tan Bo recorded the first trade by a director in pharmaceutical products manufacturer 3SBio since the stock was listed in June 2015 with 1.3 million shares purchased on May 26 at HK$7.59 each. The trade increased his holdings to 116.850 million shares or 4.65 per cent of the issued capital. The acquisition was made on the back of the 30 per cent drop in the share price since April from HK$10.80. The CFO’s purchase price was lower than the IPO prices of HK$8.30 to HK$9.10. The stock closed at HK$7.32 on Friday.

Chairman and CEO Chen Yi Hong and Executive Director Chen Chen recorded buys in mainland sports-related apparel designer and seller China Dongxiang with a combined 24 million shares purchased from May 13 to 27 at an average of HK$1.36 each. The trades, which accounted for 18 per cent of the stock’s trading volume, were made on the back of the 14 per cent drop in the share price since April from HK$1.58. Chairman Chen Yi Hong recorded his first trades since May 2012 with 20.5 million shares purchased from May 17 to 27 at HK$1.36 each. The trades increased his holdings to 2.247 billion shares or 40.6 per cent of the issued capital. He previously acquired 10 million shares in May 2012 at HK$0.99 each and sold 12.5 million shares in May 2009 at HK$4.17 each. Executive Director Chen, on the other hand, resumed buying at a lower price with 3.5 million shares purchased on May 13 at HK$1.39 each, which boosted her stake to 116.94 million shares or 2.1 per cent. She previously acquired 19.6 million shares in January at HK$1.67 each and 16.35 million shares in May 2015 at HK$1.89 each. The stock closed at HK$1.30 on Friday.

Non-Executive Director Wu Guang Ze recorded his first trades in women’s formal and casual footwear designer and manufacturer C.banner International since his appointment in June 2012 with 8.6 million shares sold from May 25 to 27 at an average of HK$3.01 each. The trades, which accounted for 51 per cent of the stock’s trading volume, reduced his holdings by 6 per cent to 139.400 million shares or 6.7 per cent of the issued capital. The disposals were made on the back of the 14 per cent rebound in the share price since the last week of January from HK$2.64. Despite the rebound in the share price, the counter is still down since the first week of January from HK$3.69. The stock closed at HK$3.03 on Friday.

Robert Halili is managing director of Asia Insider Limited