THE INSIDER ROBERT HALILI

Directors’ selling increases in HK as stock purchases decline

Significant sales seen in Lerado, Sunac China and Global Brands, while Geely top brass purchase shares

PUBLISHED : Sunday, 15 January, 2017, 6:54pm
UPDATED : Sunday, 15 January, 2017, 10:38pm

The buying fell while the selling among directors surged based on filings on the Exchange in the second week of January. A total of 36 companies recorded 183 purchases worth HK$404 million versus 17 firms with 66 disposals worth HK$153 million.

The buy figures were down from the previous week’s four-day totals of 44 companies, 225 purchases and HK$515 million. On the selling side, the number of firms and trades were sharply up from the previous week’s 10 companies and 24 disposals. The sell value, however, was down from the previous week’s disposals worth HK$200 million.

Meanwhile, the buyback activity was flat with 23 companies that posted 92 repurchases worth HK$216 million based on filings from Monday to Thursday. The number of firms and trades were slightly down from the previous week’s 25 companies and 98 repurchases. The value, however, was sharply down from the previous week’s turnover of HK$499 million.

There were several significant sales and purchases last week.

Honorary chairman Huang Ying Yuan recorded his first on-market trade in financial services provider Lerado Financial Group based on filings on the Exchange since 1993 with the sale of his entire holdings of 45.091 million shares or 1.96 per cent of the issued capital on January 4 at HK$0.21 each.

Fewer insider share purchases during first trading week of 2017

The disposal accounted for 89 per cent of the stock’s trading volume on that day. The disposal was made on the back of the 54 per cent drop in the share price since June from HK$0.46. The sale was also made before the company announced on January 12 that it would post equity investments fair value loss of HK$52 million for the past fiscal year. The stock closed at HK$0.22 on Friday.

Executive director Chi Xun recorded his first on-market trades in real estate developer Sunac China Holdings since July 2014 with 1.62 million shares sold from January 3 to 4 at an average of HK$6.70 each. The trades reduced his holdings by 18 per cent to 7.584 million shares or 0.2 per cent of the issued capital. The disposals were made on the back of the 49 per cent rise in the share price since June 2016 from HK$4.51. Investors should note that chairman Sun Hong Bin purchased 34 million shares from December 7 to 21, 2016 at HK$5.97 to HK$6.73 each or an average of HK$6.39 each, which boosted his stake to 2.088 billion shares or 54.13 per cent. He previously acquired 3.65 million shares in August 2015 at HK$4.23 each and 31.47 million shares from July to November 2013 at HK$4.84 to

HK$5.32 each or an average of HK$5.02 each. The stock closed at HK$7.29 on Friday.

President & COO Dow Peter Famulak recorded his first on-market sales in branded apparel, footwear and lifestyle product provider Global Brands Group since the stock was listed in July 2014 with 13.77 million shares sold from January 5 to 6 at HK$1.04 each. The trades reduced his holdings by 16 per cent to 72.739 million shares or 0.85 per cent of the issued capital. The disposals were made on the back of the 57 per cent rebound in the share price since June 2016 from HK$0.66. Investors should note that there were also sales by The Capital Group Companies and Sun Life Financial last month. The stock closed at HK$1.01 on Friday.

Director purchases surge while buy-back activity takes a dive

Executive Director An Cong Hui recorded his first on-market trades in automobile manufacturer Geely Automobile Holdings since April 2015 with 800,000 shares purchased from January 10 to 11 at an average of HK$8.28 each. The trades increased his holdings to 20.880 million shares or 0.24 per cent of the issued capital. The purchases were made after the stock rose by as much as 179 per cent from his acquisition prices in 2015. Investors should note that vice chairman Daniel Li Dong Hui and Chairman Li Shu Fu acquired a combined 120.3 million shares from December 6 to 20, 2016 at HK$8.48 to HK$7.24 each or an average of HK$8.18 each. The stock closed at HK$8.44 on Friday.

CEO Zhang Jian Ming recorded his first on-market trades in plastic injection moulding machine manufacturer Haitian International since January 2016 with 513,000 shares purchased from January 5 to 9 at an average of HK$15.17 each. The trades, which accounted for 10 per cent of the stock’s trading volume, increased his holdings to 958.638 million shares or 60.07 per cent of the issued capital. Investors should note that there were purchases by executive director Chen Ning Ning and non-executive director Guo Ming Guang in the fourth quarter of 2016. The stock closed at HK$15.76 on Friday.

Vice chairman & co-founder Hui Sum Ping has been buying shares of corrugated paper-ware products manufacturer and distributor Hop Fung Group at progressively higher prices since the second half of last year with 21.13 million shares purchased from September 13, 2016 to January 10 at HK$0.58 to HK$1.10 each or an average of HK$1 each. Investors should note that CEO Hui Sum Tai acquired 936,000 shares in October 2016 at HK$0.70 each, which boosted his stake to 21.878 million shares or 2.74 per cent. He previously acquired 5.1 million shares from September 21 to 27 at HK$0.60 to HK$0.67 each or an average of HK$0.64 each and 5.92 million shares from April 20 to May 12 at HK$0.56 to HK$0.62 each or an average of HK$0.59 each. The stock closed at HK$1.12 on Friday.

Robert Halili is managing director of Asia Insider