Share buying increased during quiet 3-day week in Hong Kong
Shanghai Industrial Urban Development Group, HC International and Minth Group all made sizable purchases in the week ended May 5
Buying climbed after trading flat for two straight weeks, based on filings on the Hong Kong Stock Exchange during the holiday-shortened week of May 2 to 5. A total of 25 companies recorded 110 purchases worth HK$105 million.
The 3-day figures were high compared to the previous week’s 5-day totals of 34 firms, 174 purchases and HK$200 million. The selling, on the other hand, fell, with 12 companies that recorded 45 disposals worth HK$88 million. The figures were sharply down from the previous week’s 20 firms, 92 disposals and HK$224 million.
While the buying by directors picked up last week, the buyback activity slipped with 15 companies that posted 52 repurchases worth HK$145 million based on transactions from April 28 to May 4. The number of firms was consistent with the 20 companies in the previous 5-day period while the number of transactions and value were down from the previous week’s 93 repurchases worth HK$3.91 billion.
It was a relatively quiet week with the bulk of the transactions made in small and mid-cap stocks. Among the stocks that recorded significant purchases last week are Shanghai Industrial Urban Development Group, HC International and Minth Group. On the negative side, an executive director of Guotai Junan International unloaded more shares last week at lower prices.
Shanghai Industrial Urban Development Group Limited (563)
Mainland property developer and investor Shanghai Industrial Urban Development Group bought back for the first time since August 2015 with 300,000 shares purchased on May 4 at HK$1.60 each. The trade was made on the back of the 24 per cent drop in the share price since February 16 from HK$2.10. Despite the sharp fall in the share price, the buyback was made at higher than the group’s previous purchase price based on the 250,000 shares that the company acquired in August 2015 at an average of HK$1.23 each. This is the second time that the firm has repurchased shares following the sharp fall in its share price as the buybacks in August 2015 were made after the stock fell by more than 54 per cent from HK$2.69 in May of that year. The counter rebounded sharply following those buybacks to HK$1.53 in October 2016, an increase of 24 per cent. The stock closed at HK$1.64 on Friday.
HC International, Inc (2280)
CEO Guo Jiang recorded his first on-market trades in business information solutions and services provider HC International since May 2016 with 800,000 shares purchased from April 26 to May 2 at HK$6.73 to HK$6.96 each, or an average of HK$6.81 each. The trades, which accounted for 11 per cent of the stock’s trading volume, increased his holdings to 195.510 million shares or 19.59 per cent of the issued capital. The purchases were made after the stock rose by as much as 34 per cent from HK$5.19 in December 2016. The counter is also up since August 2016 from HK$4.50. He previously acquired 1.5 million shares in May 2016 at an average of HK$4.28 each and 1.66 million shares from November 2014 to January 2015 at HK$8.98 to HK$6.31 each or an average of HK$8.18 each. The purchases by the CEO since November 2014 are his first on-market trades since the stock was listed in December 2003. Mr. Guo joined the Group in 1996. The stock closed at HK$6.89 on Friday.
Minth Group Limited (425)
Honorary chairman and non-executive director Chin Jong Hwa and independent non-executive director Vivian Zheng Yu resumed buying shares of automobile parts manufacturer Minth Group at higher than their previous trade prices with a combined 2.2 million shares purchased on April 27 at an average of HK$27.72 each. Although the directors resumed buying last month at a higher price, the purchases were made on the back of the 14 per cent drop in the share price since March from HK$32.25. Despite the fall in the share price, the counter is still up since February from HK$23.70. Honorary chairman Chin Jong Hwa purchased 2 million shares on April 27 at HK$27.70 each, which increased his holdings to 449.072 million shares or 39.53 per cent of the issued capital. He previously acquired one million shares in December 2016 at an average of HK$23.94 each and 3 million shares from September to November 2016 at an average of HK$25.00 each. Prior to his purchases since 2016, Chin acquired 82,000 shares in July 2015 at HK$13.92 each and 5.3 million shares from April to May 2014 at HK$12.30 to HK$11.90 each or an average of HK$12.01 each. Prior to his purchases since 2014, the honorary chairman acquired one million shares in December 2013 at an average of HK$16.40 each and 16.66 million shares from January to November 2008 at HK$7.96 to HK$2.13 each or an average of HK$3.61 each. Independent non-executive director Vivian Zheng, on the other hand, acquired 200,000 shares on April 27 at HK$27.96 each, which boosted her stake by 36 per cent to 750,000 shares or 0.07 per cent. She previously acquired 50,000 shares in December 2016 at HK$24.50 each and 100,000 shares in November 2016 at HK$24.53 each. Prior to her trades since 2016, Zheng acquired an initial 200,000 shares from March to April 2014 at HK$14.50 each. Prior to those purchases, the director sold her entire holdings of 70,000 shares in October 2013 at HK$16.00 each. She acquired those shares in June 2013 at an average of HK$10.94 each. The stock closed at HK$28.80 on Friday.
Guotai Junan International Holdings Limited (1788)
Deputy CEO Wong Tung Ching resumed selling shares of securities brokerage firm Guotai Junan International at lower than his sale prices from 2015 to 2016 with 1.16 million shares sold from April 24 to 25 at an average of HK$2.48 each. The trades reduced his holdings by 9 per cent to 12.252 million shares or 0.18 per cent of the issued capital. The disposals were made on the back of the 13 per cent drop in the share price since February from HK$2.85. The counter is also down since November 2016 from HK$3.20. He previously sold 3.86 million shares from April to November 2016 at HK$2.60 to HK$3.29 each or an average of HK$3.01 each and 2.26 million shares from October to November 2015 at HK$2.90 to HK$3.43 each or an average of HK$3.06 each. Prior to those sales, Mr. Wong acquired 626,000 shares from July to September 2015 at an average of HK$2.44 each and sold a net 5.82 million shares from November 2012 to May 2015 at HK$2.13 to HK$16.00 each or an average of HK$7.31 each. Wong joined the Group in October 2000. The stock closed at HK$2.34 on Friday.