The Insider

Luk Fook’s director strikes gold with stock sale, leading disposals by Geely, CHerish

PUBLISHED : Sunday, 27 August, 2017, 1:22pm
UPDATED : Sunday, 27 August, 2017, 7:47pm

Stocks purchases by directors remained high while selling surged for the second straight week on the Hong Kong exchange during the typhoon-shortened trading period of August 21 to 25.

A total of 20 companies recorded 91 purchases worth HK$81 million versus 10 firms with 32 disposals worth HK$57 million, according to filings.

The buy figures were consistent with the previous week’s 5-day totals of 23 companies, 113 purchases and HK$90 million. The sales were up compared with the previous week’s 8 firms, 26 disposals and HK$43 million.

Meanwhile, the buyback activity fell with 14 companies that posted 52 repurchases worth HK$653 million based on filings from August 18 to 24. The number of firms was consistent with the previous 5-day total of 16 companies. The number of trades and value, however, were sharply down from the previous 5-day totals of 75 trades worth HK$1.178 billion.

With the surge in directors’ sales, the bulk of the significant trades last week were by CHerish Holdings, Geely Automobile Holdings and Luk Fook Holdings.

CHerish’s chairman Tang Man On sold 6 million shares of the site formation solutions provider from August 17 to 18 at HK$0.60 each, his first since the company was listed in October 2016 at HK$0.70 per share. The trades reduced his holdings to 549.000 million shares or 71.51 per cent of the issued capital. The counter closed at HK$0.68 on Friday.

Geely’s independent non-executive director Alex Yeung Sau Hung sold 150,000 shares of the automobile manufacturer on August 22 at HK$19.14 each. The trade reduced his holdings by 14 per cent to 0.01 per cent of the issued capital. The sale, made after Geely announced its interim profit had more than doubled, gave Yeung a huge profit based on the 350,000 shares that he acquired via options on April 12 at HK$3.16 each.

The insider sentiment is not entirely negative this year as Executive Director An Cong Hui purchased 900,000 shares from January 10 to 12 at an average of HK$8.27 each, which increased his holdings to 20.980 million shares or 0.24 per cent. He previously acquired 9.38 million shares from January to April 2015 at an average of HK$3.17 each. The stock closed at HK$18.92 on Friday.

Luk Fook’s executive director Wong Hau Yeung sold 50,000 shares of the gold jewellery retailer from August 15 to 17 at an average of HK$28.07 each. The trades reduced her holdings by 83 per cent to 10,000 shares. Wong has made at least three rounds of profitable disposals since 2011, after having bought her shares earlier at lower prices, according to Insider’s data. Her sale this month gave her a return of 36 per cent while her sales in 2015 and 2013 posted gains of 23 per cent and 17 per cent, respectively, from her purchase prices.

Luk Fook’s deputy chairman Danny Wong Ho Lung sold 10,000 shares on July 27 at HK$28.80 each, reducing his stake to 1.871 million shares, or 0.32 per cent. He previously sold 18,000 shares from April to October 2011 at HK$35.54 each. Prior to his trades since 2011, Mr. Wong purchased 8,000 shares in December 2010 at HK$24.00 each and sold 10,000 shares in October 2010 at HK$17.42 each. The stock closed at HK$28.45 on Friday.

Robert Halili is managing director of Asia Insider