Tong Yew Heng, CEO of NetLink NBN Management, the manager of NetLink NBN Trust, has been buying shares from the open market.
On Oct 2, Tong bought 100,000 shares at 97 cents each. This brings his direct stake in the company from 550,000 to 650,000 shares, equivalent to 0.017% of the company. Just three days earlier on Sept 29, Tong had bought 200,000 shares at the same price.
Prior to the recent purchases, Tong last bought shares of the trust more than half a year ago. On March 12, he paid $45,500 for 50,000 shares, or 91 cents each.
NetLink owns a nation-wide fibre optic network. It is the only means to deliver high-speed fixed broadband internet connection to more than 90% of the residents in Singapore. The network is also used to support so-called “last-mile” wireless access such as WiFi hotspots and mobile stations.
For the 1QFY2021 ended June, NetLink reported revenue of $89 million, down 3.3% from a year ago, amid fewer installation orders. However, earnings was up 12.4% to $23.5 million, thanks to government grants which helped alleviate costs.
“Despite temporary operational issues resulting from the Covid-19 pandemic, NetLink group’s resilient business model is well-supported by predictable revenue streams. With a strong balance sheet and liquidity underpinned by stable cash flows and the availability of bank facilities, the group is well-positioned to continue to invest and expand its network’s capabilities and resiliency,” says NetLink in its earnings commentary. For the most recent FY2020, the trust paid out 5.05 cents per unit, up from 4.88 cents per unit distributed for the preceding FY2019.
For the current FY2021, the trust aims to connect more new homes, woo new SME customers with customised offerings, add capacity to its network, and also gear up to support 5G mobile networks which the telcos are rolling out.
Gaining more control
Quek Leng Chan, controlling shareholder of GuocoLand, has steadily bought shares of the property group in recent weeks. The most recent purchase was made on Oct 5 when Quek, via his deemed entity companies, acquired 24,400 shares for $1.52 each. With that, Quek has a total direct and deemed stake of 851.3 million shares in the company, equivalent to 71.94%. Between Aug 27 and Oct 2, Quek had bought a total of 162,300 shares, at prices ranging between $1.45 and $1.51.
On Sept 23, the developer announced the sale of a property in China to Shanghai Changfeng Investment (Group) for RMB610 million ($120.8 million). The property, formerly known as Guoson Mall, is located within the Guoco Changfeng City project in Shanghai. As at Aug 31, the property is carried on GuocoLand’s books at RMB576 million measured at fair value. Upon completion of the transaction, GuocoLand is expected to recognise a net loss of around $13.5 million due to taxes arising from the transaction.
On Aug 24, the company announced that earnings for FY2020 ended June 30 was $114.1 million, down 55% from a year ago, as it had made fair value gains on investments in the preceding financial year. Revenue for the same period was up 2% to $941.8 million.
“Despite challenging market conditions in the second half of FY2020, the group achieved healthy residential sales in Singapore and Malaysia during the financial year. In Singapore, 86% of Martin Modern and approximately 20% of the units at Meyer Mansion and Midtown Bay have been sold as at June 30. Wallich Residence is 54% sold and continues to register sales with prices remaining firm,” states GuocoLand in its earnings commentary. As at June 30, the company’s NAV was $3.47 per share, up slightly from $3.45 as at June 30, 2019.
