UMS Holdings, the controlling shareholder of JEP Holdings, has increased its stake in the subsidiary. On Dec 10, UMS acquired 239,600 shares for $66,788.50, which works out to an average of 27.9 cents each. That brings UMS’s stake in JEP to 297.4 million or 72.01%, from 71.96% previously. On Dec 7, UMS had acquired one million shares for $262,130.
JEP has been buying back shares as well. On Oct 26, it bought back 142,300 shares for 23.207 cents each. Under its current share buyback mandate, JEP has bought back a total of 920,700 shares.
Both UMS and JEP are controlled by Andy Luong, who holds the chairman and CEO positions at both companies.
On Aug 13, JEP, a precision engineering firm focused on the aerospace industry, reported earnings of $1.8 million for 1HFY2021 ended June 30, down 60.2% from $4.2 million recorded in 1HFY2020. Revenue in the same period was down 30.4% to $29.5 million from a year ago.
The company attributes the drop to the aviation market that is suffering from the pandemic. “Moving forward, management is optimistic that the aviation sector will improve as travel restrictions between countries gradually relax. The group expects the recovery of this segment to begin next year, supported by volume production of new complex and high value-added parts from our strategic customers,” says JEP in its earnings commentary.
Iron ore miner sees insider trades
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Directors of iron ore miner Fortress Minerals have been buying up shares in the company. One of them is non-executive, non-independent director Teh Lip Kim who started buying early this month.
According to a Dec 1 filing, she had acquired 200,000 shares for $75,000 or 37.5 cents each. On Nov 30, Dec 7, 9 and 10, she had acquired 200,000 shares for $77,000, 300,000 shares for $115,500, 200,000 shares for $80,000 and 300,000 shares for $123,000 respectively.
With the purchases, Teh now holds 1.48 million shares or 0.296% of the company. In addition, she has a deemed interest of some 166.5 million shares or 33.20%. Her deemed interest is held via a few entities but largely via SBD Mining, which is a subsidiary of Selangor Dredging, a Bursa-listed property development company whose managing director and substantial shareholder is Teh.
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Besides Teh, another Fortress Minerals director who bought shares in recent months was Loong Ching Hong, another non-executive, non-independent director. Loong is the group general manager of Selangor Dredging. He last bought shares on Sept 20, acquiring 10,000 units for $3,600 or 36 cents each. The last time Loong had bought shares was in February.
Iron ore prices have had a roller coaster ride these two years. From below US$100 per tonne ($136.82 per tonne) at the start of 2020, prices have surged amid pent-up demand to hit a peak of US$220 per tonne in July.
However, with China’s policy changes over various industries looming over the market, global prices for this commodity have since corrected to just above US$100 now.
On Oct 8, Fortress Minerals reported earnings of US$3.3 million for 2QFY2021 ended Aug 31, down 42% from US$5.7 million in 2QFY2020. Revenue in the same period was down 23.1% to around US$10 million. While the company fetched higher selling prices, total revenue was offset by a drop in volume sold.
Nevertheless, for 1HFY2021, the company reported earnings of US$10.5 million, up 33.7%. Revenue in the same period was up 35.8% to US$20.1 million.
On Oct 12, the company announced it has signed a new offtake agreement with an existing buyer, a third-party domestic mill, to sell 375,000 wet metric tonnes over 15 months.
In its earnings commentary, Fortress Minerals notes that appetite for its iron ore concentrate remains strong throughout the year and it is optimistic that demand will “remain healthy”.
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Photo of Andy Luong by Albert Chua of The Edge Singapore
