Jen Shek Chuen, a substantial shareholder of Southern Packaging Group, has recently added to his stake. On July 8, Jen paid $134,865 for 299,700 shares, or 45 cents each. This brings his total holdings in the China-based packaging manufacturer to just over 10.8 million shares, or 15.39%, from 14.96% earlier.
Just around a fortnight before Jen bought, another substantial shareholder of the company was in the market — but to sell. Berry Plastics Asia on June 23 sold 250,000 shares for $112,150.54, or 44.9 cents each. With this, it is left with 5,575,000 shares — equivalent to 7.93% — down from 8.28% previously.
Jen is listed as the third largest shareholder in Southern Packaging’s FY2021 annual report, as of March 15. The company’s co-founder, executive chairman and CEO Pan Shun Ming — as indicated in the annual report — holds 27.4 million shares, or equivalent to 38.94%. His wife Mai Shuying, the company’s co-founder and chief financial officer, is the second largest shareholder with 17.9 million shares or 25.49%.
These two transactions aside, there had been scant movements by insiders of Southern Packaging. According to Singapore Exchange (SGX) filings, Jen’s most recent move prior to July 8 was on Sept 6, 2020, when he paid $25,000 for 50,000 shares, or 50 cents each. Prior to this, he paid $38,000 for 95,000 shares on Nov 13 2018, or 40 cents each. As at Dec 31 2020 the company’s net asset value per share was RMB7.97 ($1.65), which increased slightly to RMB8.15 ($1.69) as at Dec 31 2021.
On March 1, the company reported earnings of RMB14.1 million for FY2021 ended Dec 31, 2021, up 197.1% over the preceding FY2020’s RMB4.7 million. Revenue in the same period was up 30.3% y-o-y to RMB769.2 million, which marks a recovery back to the pre-pandemic levels.
However, the company’s profit margin in the period was “significantly affected” because of higher materials, energy and labour costs. “The packaging manufacturing industry has faced significant challenges on profitability due to the fierce competition in the consumer goods market since the outbreak of Covid-19.” Southern Packaging says it will work closely with major customers to jointly develop new products.
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During FY2021, the company divested a “certain part” in one of its property assets Apex Tower and it is looking at ways to maximise the return of its remaining property portfolio. In its FY2021 report, the company has RMB310.4 million worth of properties classified as held for sale.
On April 11, the company warned that because of Shanghai’s lockdown, its production and delivery plans have been affected as it could not deliver its products to its Shanghai-based customers. “The group expects this situation will persist for some time until the Covid-19 situation is under control,” adds Pan.
Former chairman ups stakes
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Former chairman of Marco Polo Marine Lee Wan Tang has recently bought shares in the company. On July 13, Lee paid 2.9 cents each for three million shares. The following day, he bought another three million shares, paying 2.944 cents each.
This brings his direct stake to 29.4 million shares, equivalent to 0.83%. In addition, he has a deemed stake of another 367.3 million shares or 10.38%. Lee now has a total interest of 396.7 million shares, equivalent to 11.21%.
Marco Polo Marine operates two main business segments: Ship chartering and shipbuilding and repair. It is trying to capture a bigger business providing supporting services to the renewable energy industry.
For the half year ended March 2022, Marco Polo reported earnings of $10.8 million, up 81.8% y-o-y over $5.9 million recorded in the year earlier. Revenue in the same period was up 30.9% y-o-y to $27.6 million.
In its earnings commentary, the company believes that the outlook for the industry remains uncertain because of the emergence of Covid-19 variants like Omicron and the continuing conflict in Ukraine. “Nonetheless, the group will continue to pursue its overall strategy of extending its reach in the renewable energy sector,” the company adds.
