THE INSIDER ROBERT HALILI
The Insider
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Buying by directors surges for second straight week

China Traditional Chinese Medicine buys back for first time since 1995

PUBLISHED : Sunday, 10 April, 2016, 2:09pm
UPDATED : Monday, 16 January, 2017, 10:28am

Buying by directors surged for a second straight week, with 38 companies recording 161 purchases worth HK$330 million based on exchange filings from April 4 to 8. The figures were sharply up from the previous week’s 21 firms, 113 purchases and HK$238 million.

Sales, on the other hand, fell, with eight companies recording 42 disposals worth HK$83 million. The figures were down from the previous week’s 11 firms, 47 trades and HK$247 million.

Meanwhile, buyback activity rose for a third straight week, with 24 companies posting 90 repurchases worth HK$176 million. The number of firms and trades were up from the previous week’s 20 companies and 81 repurchases. The value, however, was down from the previous week’s turnover of HK$222 million.

There were several rare buybacks and director purchases last week, with repurchases in China Traditional Chinese Medicine, Hsin Chong Construction and China Metal International and insider buys in C Cheng Holdings and Kerry Logistics.

Pharmaceutical products manufacturer China Traditional Chinese Medicine bought back for the first time since 1995 with 22.1 million shares purchased from March 29 to April 8 at HK$3.44 to HK$3.80 or an average of HK$3.57 each. The trades, which accounted for 13 per cent of the stock’s trading volume, were made after the stock fell by as much as 36 per cent from HK$5.36 in December. The counter is also sharply down since May 2015 from HK$6.98. Despite the fall in the share price, the counter is still up since October 2011 from HK$0.99. The group previously acquired nearly 3 million shares from April to November 1995 at HK$1.07 to HK$0.78 each or an average of HK$0.90 each. The stock closed at HK$3.63 on Friday.

Construction play Hsin Chong Construction bought back for the first time since 2005 with 12.7 million shares purchased from April 5 to 7 at an average of HK$0.525 each. The trades, which accounted for 26 per cent of the stock’s trading volume, were made on the back of a 46 per cent drop in the share price since September from HK$0.97. The stock is also sharply down since February 2013 from HK$1.41. The company previously acquired 662,000 shares in December 2005 and 43 million shares from September 1999 to October 2001 at an average of HK$0.51 each. The counter closed at HK$0.51 on Friday.

Metal castings manufacturer and distributor China Metal International bought back for the first time since September 2009 with 8.2 million shares purchased on April 6 at HK$2.24 each. The trade was made on the back of a 21 per cent rebound in the share price since October from HK$1.85. Despite the rebound in the share price, the counter is still down since September 2014 from HK$2.78. The group previously acquired 33.2 million shares from October 2007 to September 2009 at HK$3.04 to HK$0.55 each or an average of HK$1.27 each. The stock closed at HK$2.25 on Friday.

Chief executive Fu Chin-shing recorded the first corporate shareholder trade in architectural services provider C Cheng Holdings since the stock moved its listing from the Growth Enterprise Market to the main board in July, with 40,000 shares purchased on March 30 at HK$1.80 each. The trade increased his holdings to 39.022 million shares or 20.15 per cent of the issued capital. The purchase was made on the back of a 27 per cent drop in the share price since October from HK$2.45. The stock is also sharply down since July 2015 from HK$3.12. The stock closed at HK$1.85 on Friday.

Managing director William Ma Wing-kai recorded his first on-market trades in integrated logistics services provider Kerry Logistics Network since March 2014 with 325,000 shares purchased from March 30 to April 5 at HK$11.10 to 10.93 each or an average of HK$10.99 each. The trades, which accounted for 5 per cent of the stock’s trading volume, increased his holdings to 5.292 million shares or 0.31 per cent of the issued capital. The purchases were made after the stock rebounded by as much as 15 per cent from HK$9.68 in January. He previously acquired 650,000 shares in March 2014 at an average of HK$11.37 each. Investors should note that the stock rebounded by 13 per cent following those purchases in March 2014 to HK$12.84 in November that year. The stock closed at HK$10.74 on Friday.

Robert Halili is managing director of Asia Insider

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