Arnoud De Meyer, an independent director of resorts operator Banyan Tree Holdings, has acquired more shares on the open market. De Meyer, an academic focusing on areas such as R&D and innovation management, manufacturing strategy and international management, acquired 100,000 shares at 29 cents each on April 21. He now holds 183,000 shares.
De Meyer was first appointed to Banyan Tree’s board on Jan 28, 2021. Until Dec 2018, he was president of the Singapore Management University, where Ho Kwon Ping, Banyan Tree’s executive chairman, is the chairman of the university’s board of trustees.
Last August, Goodview Properties, a vehicle of the Ng family controlling Far East Organization, emerged as a substantial shareholder of Banyan Tree. On Aug 3, it acquired 1.5 million shares on the open market for $465,387. This brings its total stake to 43.5 million shares or 5.12%. Prior to the filing, it had held a 4.94% stake.
In FY2021 ended Dec 31, 2021, Banyan Tree reported a 40.2% increase in revenue to $221 million from a year ago led by improvement in its various business segments ranging from hotel operations to property sales. Net loss was reduced by 42% to $55.2 million from the previous year.
Banyan Tree shares closed on April 25 at 29 cents, down 7.81% year to date. As at Dec 31, 2021, its net asset value was 57 cents versus 67 cents as at Dec 31, 2020.
Banyan Tree is benefitting from the gradual reopening from the pandemic. In 2HFY2021 ended Dec 31, 2021, the occupancy rate in its Thailand properties was 29%, 12 percentage points higher than the same period a year ago. Its operations in the Maldives, which reopened earlier, enjoyed an occupancy rate of 60% in 2HFY2021 versus 17% seen in 2HFY2020. Revenue per average room night was up threefold in the period.
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In its earnings commentary on Feb 28, Banyan Tree notes that while global tourism was up 4% between 2021 and 2020, it was still 72% below the pre-pandemic levels. The pace of recovery remains slow and uneven while different markets and countries have varying degrees of restrictions in place, it adds.
Banyan Tree says it will remain prudent although room bookings have increased. Last year, it opened eight new properties and signed 27 hotel management agreements and developed one residence project.
Over the next three years, it has a pipeline of 45 new properties, which is in line with its aim to double its footprint by 2025. This year, Banyan Tree expects to open nine new properties in Thailand, Indonesia, China and even Saudi Arabia.
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Continued focus on renewables
Kim Heng acquired 300,000 shares between 8.7 cents and 8.8 cents on the open market after renewing its mandate to buy back shares at its AGM on April 22.
Under the previous mandate, the offshore services provider acquired 162,000 shares on Feb 25 between 7.8 and 7.9 cents each.
A day earlier on Feb 24, it had acquired 38,000 shares for 7.7 cents. In FY2021 ended Dec 31, 2021, Kim Heng’s revenue increased 68% to $63.2 million from $37.6 million a year ago.
Despite the higher revenue, Kim Heng’s net loss widened 12% y-o-y to $5.9 million from $5.26 million. In its earnings commentary, Kim Heng notes that the broader offshore and shipping market continues to face uncertainties.
Meanwhile, it will continue to grow its business servicing customers in the renewable energy segment, like those in the wind farm sector. As oil prices have increased, Kim Heng expects to benefit from higher charter income.
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