The Insider
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Director buying activity rebounds on Hong Kong exchange

Several significant acquisitions seen last week with buybacks in China Logistics Property, L’Occitane and Koradior

PUBLISHED : Sunday, 18 June, 2017, 3:24pm
UPDATED : Sunday, 18 June, 2017, 10:20pm

Directors got back on the buying track with 38 companies that recorded 190 purchases worth HK$215 million based on filings on the Hong Kong stock exchange from June 12 to 16.

The figures were up from the previous week’s 4-week lows of 34 firms, 139 purchases and HK$95 million. The selling, on the other hand, surged with 18 companies that recorded 94 disposals worth HK$460 million. The figures were sharply up from the previous week’s eight firms, 35 disposals and HK$76 million.

Aside from directors, the buyback activity rebounded sharply with 20 companies that posted 111 repurchases worth HK$819 million based on filings from June 9 to 15. The number of firms was consistent with the previous 5-days’ total of 19 companies but the number of trades and value were sharply up from the previous week’s 74 trades worth HK$352 million.

There were several significant acquisitions last week with buybacks in China Logistics Property Holdings, L’Occitane International and Koradior Holdings, and multiple insider buys in Hengan International.

Logistics services provider China Logistics Property Holdings bought back for the first time since listing in July 2016 with 3.6 million shares purchased from June 12 to 15 at an average of HK$2.50 each. The trades, which accounted for 27 per cent of the stock’s trading volume, were made on the back of the 55 per cent drop in the share price since February from HK$5.60. The group’s buyback price was lower than the IPO price of HK$3.25. The stock closed at HK$2.49 on Friday.

Natural and organic cosmetics retailer L’Occitane International picked up where it left off in January with 1.29 million shares purchased from June 13 to 15 at an average of HK$15.85 each. The trades, which accounted for 25 per cent of the stock’s trading volume, were made after the company announced on June 12 a record net profit of 132.4 million (US$148 million), up 16.6 per cent from the previous year.

L’Occitane International reports profit rise 34 per cent in the fiscal half year

The group previously acquired 671,000 shares on January 24 at HK$15.27 each. Prior to the buybacks this year, the company acquired 1.91 million shares in December 2016 at HK$14.52 to HK$15.04 each or an average of HK$14.66 each and 6.68 million shares from January to July 2016 at HK$12.61 to HK$16.50 each or an average of HK$14.56 each. Prior to the buybacks since 2016, 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. The stock closed at HK$16.32 on Friday.

High-end ladies-wear designer and distributor Koradior Holdings recorded its first buybacks since November 2016 with 3.62 million shares purchased from June 8 to 15 at an average of HK$8.17 each. The trades, which accounted for 96 per cent of the stock’s trading volume, were made on the back of the 13 per cent drop in the share price since the last week of March from HK$9.39.

The group previously acquired 8.95 million shares from August to November 2016 at HK$11.60 to HK$9.40 each or an average of HK$10.47 each and 4.9 million shares from November to December 2015 at HK$9.75 to HK$10.48 each or an average of HK$10.74 each. The stock closed at HK$8.20 on Friday.

Hengan net profit up 3.4 per cent in 2015, despite forex losses of HK$400m

CEO Hui Lin Chit, chairman Sze Man Bok and executive director Hung Ching Shan acquired shares of personal hygiene products manufacturer and distributor Hengan International with a combined 1.48 million shares purchased from June 7 to 14 at an average of HK$54.22 each. The trades accounted for 6 per cent of the stock’s trading volume. Hui purchased 600,000 shares from June 13 to 14 at an average of HK$53.56 each, which increased his holdings to 241.778 million shares or 20.07 per cent of the issued capital. The purchases were made on the back of the 21 per cent drop in the share price since March from HK$67.55.

Sze, on the other hand, acquired 780,000 shares from June 7 to 13 at an average of HK$54.84 each, which boosted his stake to 234.150 million shares or 19.43 per cent. He previously acquired 3.39 million shares from March 22 to 31 at an average of HK$59.20 each. Lastly, Hung purchased 100,000 shares on June 12 at HK$53.35 each, which increased his holdings to 7.120 million shares or 0.59 per cent. He previously sold 10,000 shares in July 2011 at HK$69.33 each.

The stock closed at HK$55.25 on Friday.

Robert Halili is managing director of Asia Insider

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