Geely Automobile chairman Li Shufu strengthens grip on carmaker as stake rises to 46.18pc
Li bought 18.83m shares worth HK$470.6m, making him the top buyer in terms of value last week
The director activity fell based on filings on the Hong Kong exchange from January 22 to 26 with 39 companies that recorded 233 purchases worth HK$742 million (US$60.3 million) versus 21 firms with 92 disposals worth HK$854 million. The number of companies and trades were down from the previous week’s 52 firms and 245 purchases on the buying side and 27 companies and 111 disposals on the selling side. The values, however, were up from the previous week’s purchases worth HK$266 million and sales worth HK$337 million.
Meanwhile, buy-back activity fell after trading flat for three straight weeks with 18 companies that posted 65 repurchases worth HK$74 million based on filings from January 19 to 25. The number of firms was not far off from the previous five-day total of 19 companies. The number of trades and value, however, was down from the previous week’s 73 transactions worth HK$139 million.
There were several significant trades last week with rare insider buys in Geely Automobile Holdings and Luk Fook Holdings (International), and rare sales in Computime Group and EPI (Holdings).
Geely chairman Li Shufu was the top buyer in terms of value last week with 18.83 million shares worth HK$470.6 million in the carmaker on January 19 at HK$24.99 each. The trade increased his holdings to 4.143 billion shares or 46.18 per cent of the issued capital. He previously acquired 119 million shares in December 2016 at an average of HK$8.19 each. Li also acquired 8.8 million shares in January 2016 at HK$3.49 each and 23.1 million shares from November 2014 to July 2015 at an average of HK$3.14 each. Li joined the group in June 2005. The stock closed at HK$25.10 on Friday.
It must be noted that Li resumed buying this month after the stock rose by as much as 218 per cent from his acquisition prices in December 2016. The company expects to post a 100 per cent gain in net profit for full-year 2017, with results due in the third week of March.
Luk Fook Holdings chairman Wong Wai-sheung and executive director Nancy Wong Lan-sze acquired a combined 1.27 million shares in the gold jewellery retailer and wholesaler from January 18 to 25 at an average of HK$28.22 each. Wong bought 1.17 million shares from January 18 to 25 at an average of HK$28.20 each.
The trades increased his holdings to 248 million shares or 42.24 per cent of the issued capital. He previously acquired 23,000 shares in January 2016 at HK$13 each and 20,000 shares in June 2014 at HK$23.13 each. Nancy, on the other hand, bought 100,000 shares from January 18 to 19 at an average of HK$28.46 each, which boosted her stake to 1.996 million shares or 0.34 per cent. She previously acquired 183,000 shares from January 2011 to June 2014 at an average of HK$22.67 each and 70,000 shares from October to November 2008 at HK$1.94 each. Nancy was appointed to her post in September 2008. The stock closed at HK$27.65 on Friday.
The recent purchases by Wong and Nancy accounted for 7 per cent of the stock’s trading volume and were made on the back of a 21 per cent drop in the share price since November 2017 from HK$35.60.
It was also Wong’s and Nancy’s first on-market trades since January 2016 and June 2014, respectively.
Computime Group chairman Auyang Ho sold 5 million shares in the electronic control and automation devices and solutions provider from January 15 to 24 at HK$1.35 each. The trades reduced his holdings to 358.216 million shares or 42.66 per cent of the issued capital. He previously acquired 10.7 million shares from June to October 2015 at an average of HK$1.44 each. The stock closed at HK$1.36 on Friday.
The disposals were Auyang’s first since the stock was listed in October 2006 and accounted for 43 per cent of the stock’s trading volume. The sales were made on the back of a 20 per cent drop in the share price since August 2017 from HK$1.68.
EPI (Holdings) chairman Paul Suen Cho-hung sold 300.3 million shares in the oil and gas explorer and producer from January 22 to 25 at HK$0.63 to HK$0.72 each or an average of HK$0.68 each. The trades reduced his holdings to 2.234 billion shares or 44.54 per cent of the issued capital. The counter closed at HK$0.70 on Friday.
Suen’s disposals, his first on-market trades since his appointment as chairman in October 2016, reduced his holdings by 12 per cent and accounted for 60 per cent of the stock’s trading volume.
It must be noted that the sales were made after the stock rebounded by as much as 205 per cent from HK$0.236 in June 2017.
Robert Halili is managing director of Asia Insider