The Insider
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Some rare director share moves made during final week’s trading of 2017

Purchases by high-level board members at Meitu, Yuxing InfoTech Investment, Emperor Watch & Jewellery and Great China Holdings

PUBLISHED : Sunday, 31 December, 2017, 2:38pm
UPDATED : Sunday, 31 December, 2017, 10:50pm

Directors ended 2017 on a positive note with purchases remaining high for the third straight week while selling remained flat based on filings to the Exchange during the holiday-shortened week of December 27 to 29.

Thirty-six companies recorded 188 purchases worth HK$255 million (US$32.63 million) versus eight firms with 27 disposals worth HK$89 million.

The number of companies and trades were consistent with the previous week’s 5-day totals of 58 firms and 327 trades on the buying side and 13 companies and 47 disposals on the selling side.

The values, however, were sharply down from the previous week’s purchases worth HK$1.256 billion and sales worth HK$322 million.

While the buying by directors remained high, the buy-back activity fell with 19 companies posting 69 repurchases worth HK$306 million based on filings from December 22 to 28. The 3-day figures were sharply down from the previous 5-day totals of 32 firms, 156 trades and HK$484 million.

Several directors reported rare acquisitions at the end of 2017 with purchases by high-level board members at Meitu Inc, Yuxing InfoTech Investment, Emperor Watch & Jewellery and Great China Holdings. Some acquisitions were made following the sharp fall in their share prices.

Chairman and founder Cai Wen Sheng bought 6.5 million shares in mobile application software provider Meitu from December 21 to 22 at HK$10.02 to HK$10.31 each or an average of HK$10.18 each. The trades increased his holdings to 1.673 billion shares or 39.15 per cent of the issued capital. The group announced interim results in August which showed a loss of 131.78 million yuan (US$39.12) which was significantly less than the loss of 2.19 billion yuan the same period last year. The stock closed at HK$10.88 on Friday.

The purchases by the chairman are the first corporate shareholder trades in Meitu Inc since the stock was listed in December 2016 and accounted for 17 per cent of the stock’s trading volume.

They were made after the stock fell by as much as 26 per cent from HK$3.50 in August. The stock is also down since March from HK$18.00.

But despite the fall in the share price, the chairman’s purchase prices were higher than the IPO price of HK$8.50.

Chairman Li Qiang and CEO Gao Fei recorded buys in home appliances and audio-visual products manufacturer and distributor Yuxing InfoTech Investment with a combined 6.25 million shares bought from December 20 to 27 at HK$0.65 to HK$0.88 each or an average of HK$0.75 each.

Li acquired an initial 4.60 million shares from December 20 to 27 at an average of HK$0.77 each. The shares bought represented 0.26 per cent of the issued capital.

Gao, on the other hand, resumed buying at a sharply lower price with 1.65 million shares bought from December 20 to 22 at an average of HK$0.67 each.

The trades boosted his stake to 2.19 million shares or 0.12 per cent. He previously acquired 440,000 shares from January 18 to 19 at an average of HK$1.62 each. The group announced its third quarter results on November 13 with profit down by 90.17 per cent to HK$18.52 million while earnings in the first 9 months fell by 92.7 per cent to HK$7.61 million. The stock closed at HK$0.98 on Friday.

Both Li and Gao Fei bought shares in December after the stock fell by as much as 62 per cent from HK$1.70 in March. Their recent purchases accounted for 32 per cent of the stock’s trading volume this week/

This was Li’s first on-market trades since his appointment as co-chairman in June 2016 and chairman in March 2017, while 38-years-old Gao, who is, was promoted from executive director to CEO on December 15.

Chairwoman and CEO Cindy Yeung acquired nearly five million shares in luxury watch and jewellery retailer Emperor Watch & Jewellery from December 20 to 28 at an average of HK$0.34 each.

The trades increased her holdings to 3.62 billion shares or 52.64 per cent of the issued capital.

She had previously bought 246 million shares from March 2010 to December 2012 at HK$0.47 to HK$1.52 each or an average of HK$0.88 each and 220 million shares from September to December 2008 at an average of HK$0.19 each.

The group announced its interim results in August, with a profit of HK$39.1 million against a HK$68.6 million loss in the same period last year. They closed at HK$0.35 on Friday.

Yeung’s purchases accounted for 30 per cent of the stock’s trading volume this week, and were made on the back of the 20 per cent drop in the share price since October from HK$0.43.

Chairman Jiang Tian bought 17.15 million shares in property investor and real estate agency firm Great China Holdings from December 18 to 28 at HK$1.73 to HK$1.98 each or an average of HK$1.78 each. The trades increased his holdings to 190.77 million shares or 55.24 per cent of the issued capital.

The group announced interim results in August which showed profit was down by 90.74 per cent to HK$4.73 million. The stock closed at HK$2.04 on Friday.

The chairman’s purchases were his first on-market trade in the stock since his appointment in June,

and accounted for 58 per cent of the stock’s weekly trading volume.

They were made after the stock fell by as much as 21 per cent from HK$2.18 in October. The price is still higher, closing at HK$1.32 on Friday.

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