The Insider
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Fewer insider share purchases during first trading week of 2017

Among the few notable insider transactions last week were share acquisitions in Hang Lung Properties, China SCE Property, Yuzhou Properties and Leoch Technology

PUBLISHED : Sunday, 08 January, 2017, 4:07pm
UPDATED : Monday, 16 January, 2017, 10:28am

Buyers got off to a slow start in the New Year with 44 companies that recorded 225 purchases worth HK$515 million for the holiday-shortened week of January 3 to 6.

The number of companies and value were sharply down from the previous week’s 3-day totals of 54 firms and HK$999 million, while the number of purchases was unchanged from the previous week. The selling, on the other hand, was flat with nine companies that recorded 23 disposals worth HK$200 million. The number of trades was sharply down from the previous week’s 32 disposals while the number of firms and value were slightly up from the previous week’s six companies and HK$175 million.

Aside from directors, the buyback activity was low in the first week of the New Year with 20 companies that posted 64 repurchases worth HK$320 million. The number of firms and trades were sharply down from the previous week’s 28 companies and 118 repurchases. The value, however, was sharply up from the previous week’s turnover of HK$236 million.

There were several rare insider transactions last week, with insider buys in Hang Lung Properties, China SCE Property, Yuzhou Properties and Leoch Technology.

The purchases were made following the fall in their share prices. On the flip side, there were first-time sales by directors in Elegance Optical following the sharp rebound in its share price.

Hang Lung Properties’ executive director Adriel Chan Wenbwo recorded his first on-market trades in the blue chip rental and property developer since his appointment in November 2016 with 1.66 million shares purchased from December 15 to 30 at HK$16.92 to HK$16.11 each, or an average of HK$16.51 each.

The trades increased his holding to 2.507 billion shares or 55.76 per cent of the issued capital. The purchases were made after the stock fell by as much as 16 per cent from HK$19.10 in September 2016. Despite the fall in the share price, the counter is still up since February 2016 from HK$13.32. The stock closed at HK$17.30 on Friday.

China SCE Property Holding’s executive director Huang Youquan recorded his first on-market trade in the mainland property developer since his appointment in May 2011 with an initial 34 million shares purchased on December 23, 2016 at HK$2.40 each. Huang joined the group in 2003 and was appointed executive director in May 2011.

The shares bought represented 0.99 per cent of the issued capital. The acquisition was made on the back of the 10 per cent drop in the share price since November 2016 from HK$2.67. Despite the fall in the share price, the counter is still up since March 2015 from HK$1.37. The stock closed at HK$2.41 on Friday.

Yuzhou Properties Company chairman Lam Lung-on recorded his first on-market trades in the property investor and developer since July 2015 with 2.81 million shares purchased from December 23 to 30 at HK$2.54 to HK$2.70 each, or an average of HK$2.58 each.

The trades, which accounted for 8 per cent of the stock’s trading volume, increased his holding to 2.607 billion shares or 68.32 per cent of the issued capital. The acquisitions were made on the back of the 13 per cent drop in the share price since November from HK$2.97. Despite the fall in the share price, the counter is still up since February from HK$1.70. He previously acquired 3.9 million shares in July 2015 at HK$1.98 to HK$1.57 each or an average of HK$1.82 each. The stock closed at HK$2.75 on Friday.

Leoch International Technology chairman and founder Dong Li recorded his first on-market trades in the lead-acid battery manufacturer since June 2013 with 1.26 million shares purchased from December 23 to 29, at an average of HK$0.89 each. The trades, which accounted for 51 per cent of the stock’s trading volume, increased his holding to 1.003 billion shares or 74.12 per cent of the issued capital.

The acquisitions were made on the back of the 23 per cent drop in the share price since August from HK$1.15. Despite the fall in the share price, the counter is still up since September 2015 from HK$0.51. He previously acquired 700,000 shares from April to June 2013 at HK$0.98 to HK$0.78 each or an average of HK$0.943 each and 1 million shares from July to August 2012 at an average of HK$1.09 each. The counter closed at HK$0.97 on Friday.

Elegance Optical International chairman Hui Leung-wah recorded his first on-market sales in the optical products trader and manufacturer with 55.1 million shares sold from December 23 to 28 at HK$2.65 each.

The trades, which accounted for 79 per cent of the stock’s trading volume, reduced his holding by 36 per cent to 98.508 million shares or 30.44 per cent of the issued capital. The disposals were made on the back of the 51 per cent rebound in the share price since September from HK$1.76. Despite the rebound in the share price, the counter is still down since April 2016 from HK$3.09. He previously acquired 4.1 million shares from January 2002 to July 2006 at HK$1.70 to HK$0.94 each or an average of HK$1.53 each.

Also negative last month are share disposals by Elegance Optical’s executive director Poon Sui-hong, who sold 200,000 shares on December 22 at HK$2.64 each. The trade lowered his stake to 7.800 million shares or 2.41 per cent. He previously acquired 800,000 shares from October 2001 to August 2007 at HK$1.14 to HK$1.70 each or an average of HK$1.44 each. The stock closed at HK$2.59 on Friday.

Robert Halili is managing director of Asia Insider

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