THE INSIDER
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Chairman lifts stake in Goldin Properties to 64.39 per cent

Pan Sutong buys 416,000 shares in property developer after 70 per cent drop in price

PUBLISHED : Sunday, 13 March, 2016, 10:18am
UPDATED : Monday, 16 January, 2017, 10:28am

The buying was high for the third straight week while the selling among directors remained low based on stock exchange filings last week.

Fourteen companies recorded 97 purchases worth HK$365 million versus a paltry two firms with 12 disposals worth HK$32 million. The number of companies on the buying side was down from the previous week’s 18 firms but the number of trades and value were up from the previous week’s 91 purchases worth HK$182 million. On the selling side, the number of companies was sharply down from the previous week’s six firms while the number of trades and value were consistent with the previous week’s 12 disposals worth HK$31 million.

While the buying among directors remained high, buyback activity fell for the second straight week with 10 companies posting 46 repurchases worth HK$101 million. The number of firms was consistent with the previous week’s nine companies but the number of trades and value were sharply down from the previous week’s 63 repurchases worth HK$244 million.

The trading was mixed among the buyers with several companies and directors buying more shares at higher prices while several firms and insiders bought following a price fall. Among the stocks that recorded purchases at higher prices were Logan Property, Lee & Man Paper Manufacturing and CLP. On the flip side, there was price support in L’Occitane International and Goldin Properties.

Property developer Logan Property resumed buying back at a higher price with 1.06 million shares purchased on Friday at HK$2.48 each. The trade was made on the back of a 17 per cent rebound in the share price since February 12 from HK$2.11. The group previously acquired 584,000 shares from February 3 to 4 and 3.07 million shares on January 22 at an average of HK$2.21 each. The trades since January are the company’s first buybacks since listing in December 2013. The group’s last buyback price was near the initial public offering price of HK$2.50. The stock closed at HK$2.52 on Friday.

Paper products manufacturer Lee & Man Paper Manufacturing resumed buying back at higher than its acquisition prices in January with 680,000 shares purchased on Monday at HK$4.98 each. The trade was made on the back of an 18 per cent rise in the share price since February from HK$4.21. The group previously acquired 21 million shares from January 7 to 21 at an average of HK$4.07 each. Before the repurchases since January, the company acquired 91 million shares from March to December last year at HK$3.61 to HK$5.05 each or an average of HK$4.50 each and 86.3 million shares from January 2013 to November 2014 at HK$5.99 to HK$3.89 each, or an average of HK$4.85 each. The stock closed at HK$5.26 on Friday.

Non-executive director John Leigh recorded his first trade in blue chip utility firm CLP since June 2014 with 10,000 shares purchased on March 2 at HK$69.25 each. The trade increased his holdings to 224.349 million shares or 8.88 per cent of the issued capital. The acquisition was made on the back of an 11 per cent rebound in the share price since January from HK$62.45. The counter is also up since October 2014 from HK$59.64. Leigh previously acquired 25,000 shares in June 2014 at HK$63.51 each, 15.2 million shares from December 2012 to April 2013 at an average of HK$66.81 each and 78,000 shares from September 2006 to August 2011 at HK$48.10 to HK$69.82 each, or an average of HK$59.54 each. The stock closed at HK$68.15 on Friday.

Natural and organic cosmetics retailer L’Occitane International resumed buying back after the stock fell by 9 per cent from HK$15.74 on March 4 with 56,000 shares purchased on Wednesday at HK$14.30 each. The group previously acquired 2.53 million shares from January 27 to February 17 at HK$12.61 to HK$14.94 each or an average of HK$12.92 each. Before the repurchases this quarter, the group acquired 6.65 million shares from November to December 2011 at HK$13.86 to HK$15.20 each, or an average of HK$14.44 each. Also positive this quarter is chairman and chief executive Reinold Geiger with 2.41 million shares purchased from January 27 to 29 and 97,000 shares from February 15 to 17 at HK$12.70 to HK$14.94 each, or an average of HK$12.90 each. The trades increased his holdings to 1.031 billion shares or 69.85 per cent of the issued capital. The stock closed at HK$14.52 on Friday.

Chairman and chief executive Pan Sutong recorded his first trade in property developer Goldin Properties since August last year with 416,000 shares purchased on Tuesday at HK$3.57 each. The trade increased his holdings to 2.300 billion shares or 64.39 per cent of the issued capital. The acquisition was made on the back of a 70 per cent drop in the share price since December from HK$11.98. He previously acquired 2.2 million shares from July to August last year at HK$5.64 each and 2.5 million shares from July to August 2014 at HK$4.42 each. Before his purchases since 2014, Pan acquired 109.5 million shares from January 2011 to July 2013 at HK$1.65 to HK$4.90, each or an average of HK$2.67 each, and 146.2 million shares from March 2005 to December 2010 at HK$1.86 to HK$7.51 each, or an average of HK$4.43 each. The stock closed at HK$3.60 on Friday.

Robert Halili is managing director of Asia Insider

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