Pek Kok Sam, CEO and executive director of Southern Alliance Mining, recently raised his stake in the company. Based on the regulatory filings, it was the first time an insider had reported changes in shareholdings since the company went IPO last June. On March 17, Pek acquired 65,000 shares for $39,000, or 60 cents each. He now holds nearly 343.9 million shares, or 70.32%, up from 70.3% previously.
On March 13, the company, which mines iron, reported revenue increased by 8% y-o-y to RM152.1 million ($49.6 million) for 1HFY2021 ended January 2020. Earnings in the same six-month period was also up 47% y-o-y to RM51.4 million from RM35 million, thanks to 40% higher margins due to higher average selling prices and lower production volumes that translated into lower logistical and production costs.
Looking ahead, Southern Alliance Mining notes that while China, its key market, is aiming for 45% self-sufficiency in iron by 2025, the country will continue to rely on imports due to the scarcity of resources and high production costs due to the very low grade of its iron ore. In addition, widespread stimulus packages are seen to boost investment and spending in 2021 which will continue to buoy commodity prices.
On its part, Southern Alliance Mining plans to push ahead with its planned drilling programmes. “Resilient financial performance in a year marred by the pandemic is a great testament to our capabilities, character and foothold in the industry,” says Pek. “Rising iron ore prices coupled with the rising demand and falling supply has enabled us to expand our market reach considerably and we will continue to capitalise on it by focusing on enhancing our exploration activities at our Chaah Mine. Keeping in mind that the Covid-19 pandemic is still evolving, we remain cautiously optimistic in our outlook for the group,” he adds.
Media moguls
Insiders of GHY Culture & Media also raised their stakes in the company in recent weeks. On March 19, Guo Jingyu, executive chairman of the company, acquired 143,800 shares for $104,536.85, which works out to an average price of 72.7 cents each. This brings his direct holdings to just over 1.88 million shares, equivalent to 0.18% of the company. Guo also holds an indirect stake of 640 million shares, or 59.6%.
Earlier on March 1, Guo acquired 655,800 shares for $490,597.42, which works out to an average of 74.8 cents each. Back in December, not long after the company was listed, Guo had made a series of purchases too. Besides Guo, John Ho Ah Huat, the company’s advisor cum substantial shareholder, also added to his stake by buying from the open market. On March 1, Ho acquired 148,900 shares for $111,351.89, bringing his total stake to nearly 113.3 million shares, or 10.55%, from 10.54% previously.
On March 17, GHY signed a non-binding memorandum of understanding with a subsidiary of China’s second-largest video streaming player and Nasdaq-listed iQIYI, to set up a Singapore-based talent management firm to “identify and promote talent across Southeast Asia”.
The joint venture, UNI-ICON Entertainment, will target the regional countries to search for new talent, and not just limit to Mandarin-speaking markets. A talent search programme featuring candidates from Singapore, Malaysia, Thailand, Indonesia and the Philippines is currently in the works. On Feb 26, GHY reported earnings of $38.1 million for FY2020 ended Dec 31, 2020, trebling its FY2019 earnings. Revenue in the same period came in at $127.1 million, up 93% from a year ago.
Earlier, GHY announced another related venture that will help boost its business strategy of being an integrated media production company. Together with a few other Chinese partners, GHY is setting up an entity to develop scripts — the essential elements without which popular content could not be created.
