Director purchases put the spotlight on China Tian Lun Gas and Tianyun International
Notable insider buying activity seen in selected companies following sharp declines in their share prices
The buying fell for the second straight week while the selling among directors rebounded based on filings on the Exchange in the third week of July. A total of 35 companies recorded 150 purchases worth HK$194 million versus 24 firms with 70 disposals worth HK$105 million. The buy figures were sharply down from the previous week’s 48 companies, 193 purchases and HK$302 million. On the selling side, the number of firms and trades were up from the previous week’s 16 companies and 44 disposals. The sell value, however, was sharply down from the previous week’s sales worth HK$630 million.
Aside from directors, the buyback activity fell for the second straight week with 18 companies that posted 88 repurchases worth HK$570 million. The number of firms and trades were down from the previous week’s 22 companies and 137 repurchases. The value, however, was up from the previous week’s turnover of HK$528 million.
There were several first-time purchases by companies and directors last week, the bulk of which were made following the sharp fall in share prices. There were initial buybacks in China Tian Lun Gas, Tianyun International and First Tractor Company Limited and insider buys in Tempus Holdings and CCT Fortis Holdings.
Natural gas distributor China Tian Lun Gas Holdings bought back for the first time since listing in November 2010 with 5.95 million shares purchased on July 22 at HK$5.95 each. The trade was made on the back of the 21 per cent drop in the share price since October 2015. The stock is also down since July 2014 from HK$9.81. Despite the fall in the share price, the counter is still up since November 2011 from HK$1.64. The stock closed at HK$5.90 on Friday.
Processed food producer and distributor Tianyun International bought back for the first time since listing in July 2015 with 750,000 shares purchased on July 19 at HK$0.75 each. The trade was made on the back of the 41 per cent drop in the share price since March from HK$1.27. The counter is also down since July 2015 from HK$2.41. The company’s buyback price was sharply lower than the IPO prices of HK$1.28 to HK$1.68. Also positive this month are stock purchases by Chairman & CEO Yang Zi Yuan, with 106,000 shares purchased on July 6 at HK$0.75 each, which increased his holdings to 446.189 million shares or 44.62 per cent of the issued capital. He previously acquired 2.4 million shares from May 4 to June 23 at an average of HK$0.80 each and 1.6 million shares from March 31 to April 6 at HK$0.96 each. Prior to his purchases this year, Yang acquired 5.3 million shares from November to December 2015 at an average of HK$0.93 each. The stock closed at HK$0.76 on Friday.
Industrial tractor manufacturer First Tractor Company Limited recorded its first buybacks since listing in June 1997 with 620,000 shares purchased from July 19 to 21 at HK$4.02 each. The trades, which accounted for 17 per cent of the stock’s trading volume, were made on the back of the 30 per cent drop in the share price since November 2015 from HK$5.76. The counter is also down since April 2015 from HK$8.18. The stock closed at HK$4.07 on Friday.
Non-Executive Chairman Zhong Bai Sheng recorded his first trade in health and wellness products developer Tempus Holdings since his appointment in January 2015 with 110,000 shares purchased on July 14 at HK$2.53. The trade increased his holdings to 232.105 million shares or 66.33 per cent of the issued capital. The acquisition was made on the back of the 48 per cent drop in the share price since November 2015 from HK$4.88. The counter is also down since June 2015 from HK$8.87. Despite the fall in the share price, the stock is still up since July 2012 from HK$0.41. The stock closed at HK$2.39 on Friday.
Vice Chairman Terry Tam Ngai Hung recorded his first purchases in property developer and telecom products manufacturer CCT Fortis Holdings since his appointment to the board in March 2001 with 648,000 shares purchased from July 8 to 14 at HK$0.96 each. The trades, which accounted for 47 per cent of the stock’s trading volume, increased his holdings by 128 per cent to 1.148 million shares or 0.14 per cent of the issued capital. The purchases were made on the back of a 16 per cent rebound in the share price since February from HK$0.83. Despite the rebound in the share price, the counter is still down since January from HK$1.27. He previously sold his entire holdings of 260,000 shares in June 2000 at HK$2.16 each. The counter closed at HK$0.99 on Friday.
Robert Halili is managing director of Asia Insider