THE INSIDER
The Insider
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Strong buyback activity led by four Hong Kong property industry heavyweights

Lee Shau Kee in Henderson Land, Raymond Kwok in Sun Hung Kai Properties, Victor Li in Cheung Kong Infrastructure, and Daisy Ho in Shun Tak Holdings

PUBLISHED : Sunday, 13 November, 2016, 3:02pm
UPDATED : Monday, 16 January, 2017, 10:28am

Buying rose for the second straight week, while selling among directors plunged, based on filings on the Exchange from November 7 to 11.

Buyers outweighed sellers with 38 companies recording 168 purchases worth HK$602 million versus 11 firms with 34 disposals worth HK$101 million.

The buy figures were sharply up from the previous week’s 28 companies, 104 purchases and HK$160 million while the sales were sharply down from the previous week’s 16 firms, 58 disposals and HK$186 million.

Buyback activity remained high with 22 companies posting 121 repurchases worth HK$1.695 billion. The figures were not far off the previous week’s 23 firms, 150 trades and HK$1.781 billion.

The huge insider turnover last week was led by purchases by four Hong Kong property and infrastructure heavyweights: Lee Shau Kee in Henderson Land, Raymond Kwok in Sun Hung Kai Properties, Victor Li in Cheung Kong Infrastructure, and Daisy Ho in Shun Tak Holdings.

Their collective buying was a strong sign of confidence in the market in the wake of the US elections.

Sentiment remains high in China Aluminum Cans Holdings with buybacks and purchases by its chairman last week. Also on our buy alert are Nanyang Holdings and Hysan Development as these firms resumed buying back at higher prices last week.

Chairman Lee Shau Kee picked up where he left off in property developer Henderson Land Development in July with 5.27 million shares bought from November 7 to 9 at HK$43.10 to HK$41.98 each or an average of HK$42.34 each.

The trades, which accounted for 20 per cent of the blue chip’s trading volume, increased his holdings to 2.652 billion shares or 72.91 per cent of the issued capital.

They were made on the back of an 11 per cent drop in its share price since September from HK$47.40. Lee previously acquired 7.82 million shares from June 28 to July 22 at HK$41.14 to HK$46.90 each or an average of HK$43.84 each and 22.15 million shares from January 4 to May 6 at HK$36.71 to HK$45.55 each or an average of HK$40.28 each.

Prior to his trades this year, the chairman bought 442 million shares worth HK$19 billion from April 2008 to December 2015 at HK$23.40 to HK$58.35 each or an average of HK$43.17 each. The blue chip closed at HK$42.65 on Friday.

The sentiment is high in blue chip property developer Sun Hung Kai Properties with purchases by chairman and managing director Raymond Kwok Ping Luen and deputy managing director Mike Wong Chik Wing with a combined 1.7 million shares purchased from November 7 to 9 at an average of HK$103.75 each.

The trades were made on the back of the 14 per cent drop in the share price since September from HK$120.90. Chairman Raymond Kwok bought 1.6 million shares from November 7 to 9 at an average of HK$103.69 each, which increased his holdings to 512.128 million shares or 17.69 per cent of the issued capital.

He previously acquired 2.34 million shares from June 13 to 73 at an average of HK$89.02 each and 6.04 million shares from January 4 to 26 at HK$91.95 to HK$80.60 each or an average of HK$86.60 each.

Prior to his trades this year, the chairman acquired 1.57 million shares in December 2015 at an average of HK$94.09 each, 1.29 million shares in November 2015 at an average of HK$97.91 each and 2.58 million shares in September 2015 at an average of HK$100.30 each.

Deputy managing director Mike Wong, on the other hand, acquired 100,000 shares on November 8 at HK$104.79 each, which boosted his stake by 31 per cent to 418,000 shares or 0.01 per cent. He previously sold 30,000 shares in December 2003 at HK$64.75 each. The blue chip closed at HK$104.60 on Friday.

Chairman Victor Li Tzar Kuoi recorded the first on-market trades by a director in infrastructure firm Cheung Kong Infrastructure since the stock was listed in July 1996 with 227,000 shares purchased from November 3 to 7 at HK$63.60 to HK$65.85 each or an average of HK$64.05 each.

The trades increased his holdings to 5.655 million shares or 0.21 per cent of the issued capital. The purchases were made on the back of the 17 per cent drop in the share price since March from HK$77.61. Despite the fall in the share price, the counter is still up since January 2012 from HK$36.29.

Corporate shareholder sentiment in not entirely positive this year as The Capital Group Companies, reported a disposal-related filing on June 28 of 3.7 million shares at HK$64.99 each, which lowered its stake to 156.068 million shares or 5.89 per cent. The group previously reported a disposal-related filing on April 20 of 6.0 million shares at HK$74.00 each. Overall, The Capital Group’s stake is down by 14 per cent since April. Prior to its sales this year, the fund manager acquired 56 million shares from January 22 to October 20, 2015 at HK$62.82 to HK$71.00 each and an initial filing on January 21, 2015 of 57.2 million shares via off-market trade at an undisclosed price, which raised its interest by 64 per cent to 5.99 per cent. The stock closed at HK$65.45 on Friday.

Shun Tak Holdings Limited deputy managing director and cheif financial officer Daisy Ho recorded her first on-market trade in property developer and jetfoil ferry services provider Shun Tak Holdings since October 2011 with 5.5 million shares purchased on November 9 at HK$2.60 each.

The trade increased her holdings to 434.563 million shares or 14.28 per cent of the issued capital. The acquisition was made on the back of the 17 per cent rebound in the share price since June from HK$2.23.

Despite the rebound in the share price, the counter is still down since May 2015 from HK$4.49. She previously acquired 3.32 million shares from February 2010 to October 2011 at HK$3.99 to HK$2.56 each or an average of HK$2.90 each and 11.5 million shares from April to May 2009 at HK$2.70 to HK$4.13 each or an average of HK$3.16 each.

Investors should note that the stock rose by an average of 21 per cent three months after Ho bought shares based on 73 purchases since 1995. The stock recorded a price gain three months after on 69 per cent of those acquisitions.

Also positive this year is managing director Pansy Ho with 6.24 million shares bought from January 18 to 22 at an average of HK$2.57 each, which boosted her stake to 739.588 million shares or 24.31 per cent. She previously acquired 1.37 million shares on August 24, 2015 at HK$3.61 each. Prior to her purchases since August 2015, the Managing Director bought 11.5 million shares in May 2009 at an average of HK$3.89 each. The stock closed at HK$2.64 on Friday.

There were buybacks and purchases by chairman Lin Wan Tsang in monobloc aluminium aerosol cans manufacturer China Aluminum Cans Holdings with a combined 16.3 million shares purchased from November 3 to 10 at an average of HK$1.49 each.

The trades accounted for 58 per cent of the stock’s trading volume.

The group bought back 15 million shares from November 9 to 10 at an average of HK$1.50 each. The repurchases were made on the back of the 23 per cent rebound in the share price since October from HK$1.22. Despite the rebound in the share price, the counter is still down since July from HK$1.74.

The company previously acquired 17.92 million shares from May 27 to July 4 at HK$1.30 to HK$1.75 each or an average of HK$1.64 each. The repurchases since May are the Company’s first buybacks since listing in July 2013. The group’s buyback prices were higher than the IPO prices of HK$1.20 to HK$1.00.

Chairman Lin Wan Tsang, on the other hand, resumed buying at higher than his acquisition prices in October with 1.25 million shares purchased from November 3 to 9 at an average of HK$1.45 each. The trades increased his holdings to 973.546 million shares or 158.3 per cent of the issued capital, the equity interest stated in the HKSE filing which exceeds the private shareholder limit of 75 per cent.

He previously acquired 12.8 million shares from October 12 to 26 at an average of HK$1.26 each and 2.3 million shares from August 30 to September 1 at an average of HK$1.62 each. The purchases by Lin since August are his first on-market trades since listing. The stock closed at HK$1.59 on Friday.

Property investment firm Nanyang Holdings Limited resumed buying back at higher than its previous acquisition prices with 11,000 shares bought on November 9 at HK$41.39 each. The group previously acquired 12,000 shares from January 25 to 26 at an average of HK$38.35 each.

Prior to the repurchases this year, the company acquired 160,000 shares in January 2013 at an average of HK$27.06 each and 738,000 shares from September 2010 to October 2011 at HK$16.10 to HK$18.60 each or an average of HK$16.38 each. Prior to the buybacks since 2010, the group acquired 2.17 million shares from February 2007 to December 2008 at HK$20.30 to HK$7.99 each or an average of HK$12.83 each and 10.1 million shares from 1996 to 2006 at HK$4.50 to HK$15.75 each. The stock closed at HK$41.20 on Friday.

Property development and investment firm Hysan Development resumed buying back at higher than its previous acquisition prices with 461,000 shares bought from November 7 to 9 at an average of HK$34.65 each. The trades accounted for 8 per cent of the stock’s trading volume. Although the company resumed buying this month at a higher price, the acquisitions were made on the back of the 10 per cent drop in the share price since September from HK$38.35.

The group previously acquired 11.73 million shares from January 4 to June 24 at HK$28.95 to HK$33.60 each or an average of HK$31.01 each. Prior to the buybacks this year, the group acquired 6.75 million shares from August to December 2015 at an average of HK$31.78 each, 24.2 million shares from August to November 2007 at an average of HK$21.11 each and 30.7 million shares from May 1994 to September 2001 at HK$20.51 to HK$6.30 each or an average of HK$12.58 each. The stock closed at HK$34.10 on Friday.

Robert Halili is managing director of Asia Insider Limited

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