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The Insider

Hong Kong company directors step up buy-back of shares after two weeks of declines

Rare repurchases seen in China All Access Holdings, China New City Commercial Development, Nature Home Holding and Fortunet e-Commerce Group

PUBLISHED : Sunday, 20 May, 2018, 4:46pm
UPDATED : Sunday, 20 May, 2018, 10:47pm

Buying activity among Hong Kong directors rebounded sharply after plunging for two straight weeks while selling fell, based on filings to the city’s stock exchange from May 14 to 18.

Buyers outweighed sellers with 42 companies recording 273 purchases worth HK$172 million (US$21.9 million) versus 12 firms posting 41 disposals worth HK$38 million.

The buy figures were sharply up from the previous week’s 31 companies, 181 purchases and HK$93 million. On the selling side, the number of firms and trades fell from the previous week’s 14 companies and 64 disposals. The sell value, however, was up from the previous week’s disposals worth HK$28 million.

Buy-back activity also picked up, with 27 companies posting 140 repurchases worth HK$945 million, based on filings from May 11 to 17 – up from the previous five-day totals of 25 firms, 114 trades and HK$882 million.

Buy-backs took the spotlight last week with rare repurchases in China All Access Holdings, China New City Commercial Development, Nature Home Holding and Fortunet e-Commerce Group. Lastly, Billion Industrial resumed buying back following the sharp rise in its share price.

Wireless data communications services provider China All Access Holdings bought back for the first time since January 2015 with 1.09 million shares bought on May 17 at HK$1.83 each. The trade was made on the back of a 36 per cent drop in the share price since September 2016 from HK$2.88. The group previously acquired 1.13 million shares in January 2015 at HK$2.64 each, 904,000 shares in April 2012 at HK$1.58 each and 10.8 million shares from September to December 2011 at HK$1.34 to HK$1.75 each or an average of HK$1.53 each. The stock closed at HK$1.74 on Friday.

Commercial property developer China New City Commercial Development resumed buying back after the stock fell by as much as 69 per cent from its acquisition prices in May 2016, with 740,000 shares bought on May 17 at HK$1.42 to HK$1.32 each or an average of HK$1.36 each. The group previously acquired 1.88 million shares in May 2016 at HK$4.12 to HK$4.32 each or an average of HK$4.22 each. The repurchases since May 2016 are the company’s first buy-backs since listing in July 2014. The company’s last buy-backs were near the IPO price of HK$1.30. The stock closed at HK$1.40 on Friday.

Wooden floorings products manufacturer and distributor Nature Home Holding bought back for the first time since 2014, with 2.5 million shares bought from May 14 to 17 at HK$1.43 to HK$1.51 each or an average of HK$1.48 each. The trades, which accounted for 15 per cent of the stock’s trading volume, were made after the stock rose by as much as 54 per cent from HK$0.98 in March. The group previously acquired 13.58 million shares from April to May 2014 at HK$1.27 to HK$1.55 each or an average of HK$1.46 each and 24.78 million shares from June to September 2012 at an average of HK$1.31 each. The trades since June 2012 are the company’s first buy-backs since listing in May 2011. The group’s buy-back prices were sharply lower than the IPO price of HK$2.95. The stock closed at HK$1.49 on Friday.

Automotive parts manufacturer Fortunet e-Commerce Group picked up where it left off in October 2017 with 415,000 shares bought on May 17 at HK$1.00 each. The trade was made on the back of a 33 per cent drop in the share price since November 2017 from HK$1.50. The group previously acquired 9.6 million shares from September 19 to October 19, 2017 at an average of HK$1.09 each. The group’s buy-back prices were sharply lower than the IPO price of HK$4.00. The stock closed at HK$1.02 on Friday.

Polyester filament yarn manufacturer Billion Industrial Holdings resumed buy-backs after the stock rose by as much as 33 per cent from its acquisition prices in January, with 818,000 shares bought from May 9 to 17 at HK$10.28 to HK$12.48 each or an average of HK$10.81 each. The trades accounted for 65 per cent of the stock’s trading volume.

The group previously acquired 612,000 shares from January 8 to 10 at HK$9.39 to HK$9.92 each or an average of HK$9.70 each. Before the buy-backs this year, the company acquired 20 million shares from January 3 to December 29, 2017 at HK$4.39 to HK$9.27 each or an average of HK$5.78 each, and 24.4 million shares from January to December 2016 at HK$4.18 to HK$5.53 each or an average of HK$4.71 each. Before the buy-backs since 2016, the company acquired 44.8 million shares from July 2014 to December 2015 at HK$3.12 to HK$5.18 each or an average of HK$3.79 each and 76 million shares in January 2013 at HK$5.10 to HK$5.70 each or an average of HK$5.21 each. The stock closed at HK$11.62 on Friday.

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