George Yeo, the former cabinet minister who joined the board of computer accessories manufacturer Creative Technology on Nov 15, 2021, acquired 50,000 shares of the company on the open market for $117,500 or $2.35 each on Feb 11.
Before the filing on Feb 14, Yeo did not hold any Creative shares.
“Creative will benefit from his perspectives and insights as we move forward to meet the challenges in these difficult and uncertain times,” says Sim Wong Hoo, Creative’s chairman and CEO, referring to Yeo’s appointment.
On Feb 10, the company announced that revenue for 1HFY2022 ended Dec 31, 2021, was US$34.2 million ($46 million), down 28% y-o-y. According to Creative, sales were affected by the global shortages of semiconductors and delays in shipping schedules.
However, earnings for the same period reached US$1.24 million versus just US$45,000 a year earlier as Creative booked a US$10 million gain from the sale of a property in the US. Favourable foreign exchange movements helped too. Creative’s net asset value as at Dec 31, 2021, was US$1.27 versus US$1.25 as at June 30, 2021.
The company warns that the pace of recovery and the outlook remains uncertain. Supply chain disruptions have continued to cause shortages of certain parts, driving up shipping costs, thereby affecting the company’s operating results too. “For the second half of FY2022, the group is targeting to maintain revenue at the current level and expects to report an operating loss,” says Creative.
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One’s in logistics, the other in luxury
Singapore Shipping Corporation has been making the occasional share buybacks in recent months. Most recently on Feb 16, a total of 65,100 shares were bought back at 28 cents each. This brings the company’s total buyback under the current mandate to 5.68 million.
Prior to this purchase, on Feb 11 it bought 51,700 shares at between 28 and 28.5 cents each; on Feb 3, it bought 60,000 shares at 28 cents each.
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On Dec 30, it had acquired 164,600 shares at 29.5 cents each, and on Dec 29 and Dec 27, it had acquired 249,700 shares and 114,000 shares respectively, paying between 28.5 and 29.5 cents each.
For 1HFY2022 ended September 2021, the company reported earnings of US$5.4 million, down 13.7% y-o-y from US$6.2 million. Revenue in the same period was up 11.1% y-o-y to US$23.2 million.
The growth was driven largely by its agency and logistics segment. As at Sept 30, 2021, the company’s net asset value per share was 25.2 US cents, slightly higher from 24.2 US cents as at March 30, 2021.
Elsewhere, luxury watch retailer The Hour Glass is another company that has been making steady share buybacks.
The most recent buying was on Feb 16 when it acquired 115,500 shares for $2 each. A day earlier, it had acquired 225,100 shares for $1.99308 each.
The purchases brought the total number of shares bought back under the current mandate to 12.47 million shares.
Earlier this month, the company had bought on Feb 3, 8, 9 and 11, at quantities ranging from 2,300 shares to 27,900 shares each day, at prices at the range of $1.89 and $1.90.
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On Nov 12, the company reported revenue of $477.5 million for 1HFY2022 ended Sept 30, 2021, up 62% y-o-y. Thanks to better margins, earnings more than doubled to $62.6 million from $29.7 million.
The Hour Glass notes that the pandemic continues to cause periodic disruptions to social and business activities. “However, consumer sentiment within the watch industry remains positive. With the present momentum, the group expects to continue to be profitable in 2HFY2022 and for the full financial year.”
