HRnetGroup has on June 13 bought 200,000 shares at 76.43 cents each. On June 15, it paid 77.7 cents each for another 136,300 shares. This follows the company’s announcement before the market opened on June 13 that it has launched a $30 million programme to buy its own shares “when such shares may be undervalued due to market conditions”. HRnetGroup’s share price closed at 77 cents on June 13, up 4.5% for the day, and down 3.75% year to date.
With the standard 10% cap on annual buybacks, HRnetGroup can potentially buy back up to 100.38 million shares, and the buying can take up to a year or so. According to the company, the shares will be held as treasury shares and can be either used for employee share plans, or to help fund potential mergers and acquisitions.
HRnetGroup is seen by analysts as having a very asset-light yet cashed-up balance sheet. It enjoys a strong business moat because of its extensive network across the region, matching the large corporates hiring, and job-seekers.
For example, on April 27, HRnetGroup announced that its subsidiary, RecruitFirst, has secured a contract from the Singapore General Hospital to help hire administrative and ancillary positions from 2022 to 2024, with a further option to extend for another year. On March 30, it announced it won a four-year contract with the Ministry of Education.
Tangs up stake
Gordon and Celine Tang, the couple controlling Chip Eng Seng Corp, have recently added to their stake in the construction firm. On June 8, they paid $562,846.32, or 43.74 cents each, for nearly 1.29 million shares. On June 9, they paid 44 cents each, or $93,808.00, for another 213,200 shares. They now have a total stake, including both direct and indirect stakes, of nearly 299.8 million shares, equivalent to 38.23% of the company.
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On May 12, Chip Eng Seng announced that its 55%-owned joint venture company, H+E Technologies, has been awarded a $67.54 million contract by the Exyte Group to help build an industrial wastewater plant in Malaysia.
For the year ended December 2021, Chip Eng Seng reported a loss of $31.5 million, 61.2% lower versus the preceding FY2020. Revenue in the same period was up 65.3% to $1.1 billion, with a significant pick-up seen at both its construction and property arms. As at Dec 31, its construction book stood at $1.36 billion.
As at Dec 31 2021, Chip Eng Seng’s net asset value per share was 96.78 cents, versus 103.38 cents as at Dec 31, 2020.
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Besides Chip Eng Seng, the Tangs control another listed company, OKH Global, which focuses on industrial and logistics properties. Earlier in January this year, they privatised SingHaiyi Group, which focuses on residential and commercial properties.
Buying and selling
Michio Tanamoto, executive chairman of Uni-Asia Group, has recently bought shares in the company. On June 13, he paid $156,000 for 150,000 shares, which works out to $1.04 each. This brings his total holdings to 2.7 million shares, equivalent to 3.44%. This follows Tanamoto’s earlier buying on June 9, when he paid $1.085 for 50,000 shares.
Kenji Fukuyado, CEO of Uni-Asia, bought shares recently too. On June 1, he paid $74,679 for 70,000 shares, or $1.067 per share. Fukuyado now holds 1.47 million shares, equivalent to 1.87% of the company.
However, the combined buying of Tanamoto and Fukuyado pales in comparison to the selling by one Ham Yong Kwan, a substantial shareholder of Uni-Asia Group.
On June 9, Ham, who used to hold more than 10% of the company, made another bout of divestment in the company. He sold 745,500 shares for $776,161.87, or $1.04 each. Most recently, on May 24, he sold nearly 1.92 million shares for $2,010,429.51, which works out to $1.048 per share each. Ham is now left with just under 4.7 million shares, equivalent to 5.97%.
