Between Chua’s purchases in August and October, Ho Bee Land had made a series of share buybacks. On Sept 15, the company bought back 150,600 shares at prices ranging between $2.21 and $2.23. On Oct 5, the company bought back 80,500 shares at between $2.23 and $2.25. Under the current share buyback mandate, Ho Bee Land had bought back a total of just over 1.2 million shares, equivalent to 0.183% of its total share base.
The share buybacks and Chua’s own purchases were made at a very significant discount off the company’s book value. As at June 30, Ho Bee Land’s NAV was $5.32 per share. Ho Bee Land is famous for its being a key developer of luxury properties in Sentosa Cove and it now owns a portfolio of investment properties in both Singapore and the UK.
On Aug 13, Ho Bee Land reported earnings for the first half ended June 30 more than doubled to $90.6 million from a year ago. Revenue rose 1.7% to $108.8 million. No interim dividend was declared.
According to Ho Bee Land, the higher bottom line was due to recognition of profits totalling some $34.3 million from its associates and joint ventures. Specifically, Ho Bee’s share of earnings from its China associates in Shanghai and Zhuhai amounted to $31.3 million from developments sold prior to the pandemic.
In addition, Ho Bee Land enjoyed higher rental income of $107.3 million from a year ago and a foreign exchange gain of $5.7 million. A year earlier, it had suffered a forex loss of $3.6 million instead.
The company acknowledges the “significant adverse financial impact” on businesses and calls the outlook “grim and uncertain”, no thanks to the pandemic. “In the midst of the Covid-19 pandemic, we are fortunate to have a portfolio of prime offices in Singapore and London, as these offices remain 100% occupied. Our recurring income base has contributed to the resilience of the group during these challenging times,” says Chua.
Insider trades in glove maker
Executive chairman and CEO Wong Teek Son of glove maker Riverstone Holdings raised his stake in the company. On Oct 15, he acquired 51,000 shares on the open market for $198,400, or an average of $3.89 each. At the start of the year, Riverstone was just trading at below a dollar.
Wong now owns a direct stake of just below 2.6 million shares or 0.34%. He is deemed interested in another 376.1 million shares. This gives him a total stake of 378.6 million shares or 51.09% in the company. Wong’s last purchase was made on Oct 12 when he acquired 52,000 shares on the open market for $196,040 or $3.77 each.
In contrast to Wong, Riverstone’s COO and executive director Lee Wai Keong pared his stake in the company. On Sept 3, Lee sold nearly 15.5 million shares on the open market, gaining $61.2 million. Despite the sale, Lee still holds a stake of 8.82% in Riverstone, down from 10.92%.
Meanwhile, Malaysia’s Employees Provident Fund Board has emerged as a substantial shareholder of Riverstone. On Sept 17, it acquired two million shares for $6.58 million, or $3.29 each. It now holds just below 38.1 million shares, or 5.13%, from 4.861% earlier.
