The Insider
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Directors increase share buys for third week on Hong Kong market

PUBLISHED : Sunday, 05 March, 2017, 6:54pm
UPDATED : Sunday, 05 March, 2017, 9:43pm

The buying by directors rose for the third straight week based on filings on the exchange from February 27 to March 3 with nine companies that recorded 28 purchases worth HK$22.3 million. The number of firms and trades were up from the previous week’s seven companies and 25 purchases. The buy value, however, was sharply down from the previous week’s acquisitions worth HK$46.5 million. The selling, on the other hand, rebounded with nine firms that recorded 22 disposals worth HK$32.2 million. The figures were sharply up from the previous week’s four companies, 12 disposals and HK$2.3 million.

Meanwhile, the buyback activity plunged with only three firms that posted 10 repurchases worth HK$788 million based on filings. The number of companies and trades were sharply down from the previous week’s five-day totals of nine firms and 55 repurchases. The value, however, was consistent with the previous week’s high turnover of HK$913 million.

There were several significant insider filings last week with purchases in AIA Group, Dah Chong Hong Holdings and China Ocean Fishing Holdings following the increase in their share prices. Meanwhile, there were insider buys in Time Watch Investments and IBI Group following the fall in their share prices. On the negative side there were insider sales in Wanjia Group Holdings, RM Group Holdings and Thelloy Development Group.

Independent non-executive director Lawrence Lau Juen-Yee recorded his first on-market trades in insurance and financial services provider AIA since his appointment in September 2014 with an initial 140,000 shares purchased on February 27 at an average of HK$49.91 each. The purchases were made on the back of the 15 per cent rebound in the share price since December 2016 from HK$43.30. Also positive this quarter are Capital Group Companies and chief executive Mark Edward Tucker. The group bought a net 1.25 million shares from February 15 to 17 at HK$47.55 to HK$48.69 each, which increased its holdings to 965.921 million shares or 8.01 per cent of the issued capital.

Tucker, on the other hand, acquired 200 shares on February 15 at HK$47.51 each, which boosted his stake to 25.513 million shares or 0.21 per cent. The stock closed at HK$49 on Friday.

Chief executive Lai Ni Hium recorded his first on-market trade in motor vehicle distributor and logistics services provider Dah Chong Hong since June 2016 with 250,000 shares purchased on March 1 at HK$3.23 each. The trade increased his holdings by 125 per cent to 450,000 shares or 0.02 per cent of the issued capital. The acquisition was made on the back of the 13 per cent rebound in the share price since December 2016 from HK$2.85. Despite the rebound in the share price, the counter is still down since August 2016 from HK$3.92. The purchase was also made after the company announced on February 28 a 10.4 per cent drop in year-end profit to HK$511 million. The stock closed at HK$3.52 on Friday.

[Dah Chong Hong] chief executive Lai Ni Hium ... increased his holdings by 125 per cent to 450,000 shares or 0.02 per cent of the issued capital

Chief executive Gan Wei-ming recorded his first on-market trade in supply chain management and logistics services provider China Ocean Fishing since his appointment in February 2011 with an initial 212,000 shares purchased on February 20 at 30 HK cents each. The shares bought represented 0.01 per cent of the issued capital. The acquisition was made on the back of the 50 per cent rise in the share price since November 2016 from 20 HK cents. Also positive this quarter is Avia Asset Management with 88 million shares purchased on February 9 at 28 HK cents each, which boosted its stake by 64 per cent to 225.9 million shares or 11.21 per cent. The group previously acquired 117.9 million shares on December 7, 2016 at 24.6 HK cents each and an initial filing on December 6, 2016 of 20 million shares at 24.3 HK cents each, which raised its interest by 20 per cent to 5.85 per cent. The company changed its name from Sky Forever Supply Chain to China Ocean Fishing in November 2016. The counter closed at 31 HK cents on Friday.

Chairman and chief executive Tung Koon-ming recorded his first on-market trades in watch manufacturer and retailer Time Watch Investments since July 2016 with 2.95 million shares purchased from February 23 to March 1 at an average of 86.2 HK cents each. The trades, which accounted for 24 per cent of the stock’s trading volume, increased his holdings to 1.446 billion shares or 69.52 per cent of the issued capital. The purchases were made on the back of the 19 per cent drop in the share price since October 2016 from HK$1.06. The counter closed at 87 HK cents on Friday.

Chairman and chief executive Neil David Howard recorded the first corporate shareholder trades in renovation services provider IBI since the stock was listed in October 2016 with 2.2 million shares purchased from February 23 to 27 at 38 HK cents each. The trades, which accounted for 33 per cent of the stock’s trading volume, increased his holdings to 391.016 million shares or 48.88 per cent of the issued capital. The purchases were made on the back of the 11 per cent drop in the share price since December 2016 from 42.5 HK cents. The counter closed at 39 HK cents on Friday.

Wanjia executive director Jiang Xiang Feng recorded the first on-market trade by a director in the pharmaceutical and healthcare products distributor since the stock was listed (by way of introduction) in October 2013 with 500,000 shares sold on February 24 at 50 HK cents each. The trade reduced his holdings by 20 per cent to 2.03 million shares or 0.31 per cent of the issued capital. The trade was surprising as the sale was made on the back of the 47 per cent drop in the share price since January from 94 HK cents. The counter closed at 40 HK cents on Friday.

Executive director Wong Mau-tai recorded more sales in health and beauty supplements and products distributor RM at higher than his previous sale prices with the sale of his entire holdings of two million shares on February 23 at HK$3.63 each. The shares sold represented 0.38 per cent of the issued capital. The sale was made after the stock rebounded by 14 per cent from HK$3.18 on February 1. The stock closed at HK$3.24 on Friday.

Chairman Eddie Lam Kin-wing resumed selling shares of building construction services provider Thelloy Development at higher than his sale price in November 2016 with four million shares sold on February 24 at 44 HK cents each. The trade reduced his holdings to 586 million shares or 73.25 per cent of the issued capital. Although he resumed selling last month at a higher price, the disposal was made on the back of the 12 per cent drop in the share price since February 1 from 50 HK cents. The counter closed at 42 HK cents on Friday.

Robert Halili is managing director of Asia Insider

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