Keppel Corp announced on Jan 27 that it will be spending up to $500 million to buy back shares on the open market. The buyback started the following day and has continued steadily since then, at ever bigger quantities and higher prices as well.
On Jan 28 and Jan 31, the company acquired 56,8000 shares at $5.56 each, and 430,800 shares for $5.64–$5.65 each respectively. On Feb 3 and 4, it acquired 490,000 shares for $5.69–$5.71 each, and 180,000 shares for $5.77–$5.79 each respectively.
On Feb 7, 8 and 9, it acquired nearly 1.3 million shares at $5.84–$5.92 each; nearly 2.2 million shares at $5.94–$6.03 each; and 1.28 million shares at $6.03–$6.08 each respectively. With these acquisitions, Keppel has bought back a total of nearly 6.4 million shares of the 36.4 million allowed under its current mandate.
In FY2021 ended Dec 31, Keppel reported earnings of $1 billion, reversing from a loss of $506 million in the preceding FY2020. This was led by revaluation gains as well as better operating results. Thus far, the company has divested some $2.9 billion worth of assets as part of its target of $5 billion by the end of 2023.
While Keppel plans to reinvest the proceeds into new business areas and to reduce debt, the buybacks are a way to signal that the shares are undervalued.
Insider trades at yacht manufacturer
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Willimbury Pty Ltd, a substantial shareholder of Grand Banks Yachts, on Dec 8 acquired 605,000 shares on the open market for $186,037.50 or 30.75 cents each. This brings its total stake to nearly 24.5 million shares or 13.261%, from 12.933% previously. On Dec 8, Willimbury had acquired 298,400 shares for $93,996 or 31.5 cents each.
On Jan 21, the company warned that it will report a loss for its 1HFY2022 ended Dec 2021 due to the “prolonged shutdown” at its manufacturing facility in Pasir Gudang, so as to comply with the movement control measures issued by the Malaysian government to curb the pandemic.
According to the company, due to the disruptions totalling almost 2.5 months, construction schedules for pre-sold boats were affected, impacting revenue recognition in 1QFY2022 ended Sept 2021.
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Construction activities resumed in the middle of September 2021 and revenue was recognised accordingly. “However, the loss of revenue and the combined impact of the accrued fixed overhead costs in 1QFY2022, increased freight costs amid disruptions in sea freight, and rising material costs are expected to result in a net loss for 1H FY2022,” states Grand Banks Yachts.
For its 2HFY2021 ended June 2021, Grand Banks Yachts reported earnings of $244,000, reversing from a loss of $987,000 in the year-earlier period. Revenue was down 26.7% y-o-y to $42.6 million.
Substantial shareholder raises stake
Sunshine Ventures, a substantial shareholder of manufacturer Grand Venture Technology (GVT), on Feb 4 acquired 365,000 shares for $1.00356 each. This brings its total stake to 30 million shares or 9.07%, up from 8.96% previously.
GVT, which was listed in January 2019 on the Catalist board, was upgraded to the Mainboard on Nov 30, 2021. Over the last couple of months, it went on an acquisition spree, taking stakes in two other related companies. It also acquired additional space adjacent to its existing facilities so as to boost its capacity.
In a business update on Nov 3, 2021, the company reported earnings of $5.2 million for the 3QFY2021 ended September 2021. Revenue in the same period was up 90.9% to $31.9 million.
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