THE INSIDER ROBERT HALILI
The Insider
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Director buying remains steady, while selling eases

Rare buybacks seen in Giordano International, China Electronics Optics Valley Union Holding and China City Railway Transportation Technology. Insider buys recorded in Pc Partner Group and Eagle Nice

PUBLISHED : Sunday, 25 June, 2017, 3:06pm
UPDATED : Sunday, 25 June, 2017, 9:38pm

Buying by directors was flat while selling fell, based on filings on the Hong Kong stock exchange from June 19 to 23. Buyers outweighed sellers with 36 companies that recorded 152 purchases worth HK$647 million versus 12 firms with 60 disposals worth HK$203 million. The number of companies on the buying side was consistent with the previous week’s 38 firms.

Meanwhile, the number of trades was down from the previous week’s 190 purchases while the buy value was sharply up from the previous week’s purchases worth HK$215 million.

The sales, on the other hand, were down from the previous week’s 17 firms, 91 disposals and HK$259 million.

Aside from directors, the buyback activity was flat with 21 companies that posted 109 repurchases worth HK$508 million based on filings from June 16 to 22. The number of firms and trades were consistent with the previous 5-days’ totals of 20 companies and 111 repurchases. The value, however, was sharply down from the previous week’s turnover of HK$819 million.

There were several rare transactions last week with buybacks in Giordano International, China Electronics Optics Valley Union Holding and China City Railway Transportation Technology Holdings and insider buys in Pc Partner Group and Eagle Nice Holdings.

Clothing retailer Giordano recorded its first buyback in 17 years with 252,000 shares purchased on June 22 at HK$4.23 each. The trade was made on the back of the 42 per cent rebound in the share price since February 2016 from HK$2.98. Despite the rebound in the share price, the counter is still down since August 2013 from HK$8.14. The Group previously acquired 64.4 million shares from April 1994 to October 2000 at HK$0.35 to HK$5.78 each or an average of HK$2.95 each. The stock closed at HK$4.26 on Friday.

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Commercial business parks developer and operator China Electronics Optics Valley Union bought back for the first time since listing in March 2014 with 144,000 shares purchased on June 22 at HK$0.68 each. The trade was made on the back of the 28 per cent drop in the share price since September 2016 from HK$0.94. The Group’s purchase price was lower than the IPO price of HK$0.83. The share closed at HK$0.70 on Friday.

Networking and controlling systems application solutions provider China City Railway Transportation Technology bought back for the first time since moving its listing from the Growth Enterprise Market to the main stock board in November 2013 with 600,000 shares purchased on June 21 at HK$1.20 each. The trade was made on the back of the 30 per cent drop in the share price since the last week of December 2016 from HK$1.71. The counter is also sharply down since May 2015 from HK$3.37. The stock closed at HK$1.23 on Friday.

Executive Director Man Wai Hung recorded his first on-market trade in video graphics cards developer and manufacturer Pc Partner Group since the stock was listed in January 2012 with 100,000 shares purchased on June 19 at HK$1.69 each. The trade increased his holdings to 5.577 million shares or 1.27 per cent of the issued capital. The acquisition was made on the back of the 35 per cent drop in the share price since December 2016 from HK$2.60. The director’s purchase price was higher than the IPO price of HK$1.60. The stock closed at HK$1.81 on Friday.

Vice chairman Chen Hsiao-ying and chairman and chief executive Chung Yuk-sing acquired shares of sportswear and garments manufacturer and distributor Eagle Nice Holdings with a combined 1.23 million shares purchased from June 20 to 21 at an average of HK$2.51 each. The purchases were made on the back of the 22 per cent rebound in the share price since March from HK$2.06. The acquisitions were also made after the company announced on June 20 a 23.97 per cent gain in annual profit to HK$155.119 million.

Chen recorded his first on-market trade since August 2014 with 400,000 shares purchased on June 21 at HK$2.55 each. The trade increased his holdings to 26.501 million shares or 5.3 per cent of the issued capital. He previously acquired 772,000 shares in August 2014 at an average of HK$1.31 each. Prior to those purchases, Chen sold 836,000 shares in April 2010 at an average of HK$3.48 each. Chen was appointed to the board in October 2007.

Chung, on the other hand, recorded his first on-market trade since September 2016 with 834,000 shares purchased on June 20 at HK$2.49 each, which boosted his stake to 81.584 million shares or 16.33 per cent. He previously acquired 200,000 shares in September 2016 at HK$2.30 each and 2.86 million shares from June to July 2016 at HK$1.76 to HK$2.03 each or an average of HK$1.92 each.

Prior to his trades since 2016, the chairman acquired 3.64 million shares from February to August 2015 at an average of HK$1.69 each, 1.2 million shares in August 2014 at HK$1.26 each and 200,000 shares in August 2008 at HK$1.53 each. The stock closed at HK$2.59 on Friday.

Robert Halili is managing director of Asia Insider

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