StarHubCC3 is finding itself in another bout of share buybacks over four days thus far this month. The most recent was on May 24 when the telco acquired 70,000 shares on the open market at $1.01 each. This brings the total unit of shares bought back under the current mandate to 580,000 shares, equivalent to 0.03% of its share base.
Earlier on May 19, 22 and 23, it had acquired 200,000, 150,000 and 160,000 shares respectively at an average price of $1.01 each.
Late last November, the company was also actively buying back its shares, paying just over $1 each on most days. The company similarly did so last September, buying on six different days that month and paying around $1.10 each.
In its 1QFY2023 ended March business update released on May 11, StarHub reported earnings of $37.5 million, up 26% y-o-y. Total revenue, which included other items such as equipment sales, was up 8.7% y-o-y to $557.4 million. Service revenue was 11% y-o-y higher in the quarter due to broad-based growth across the various business segments, plus consolidation of revenue from its majority stake in MyRepbublic’s Singapore-based broadband business.
“Our 1QFY2023 performance marks a strong start to the year, running ahead of our FY2023 guidance,” says CEO Nikhil Eapen in his earnings commentary. The telco has guided FY2023 revenue growth of between 8% and 10%.
Fidelity and abrdn bets on AEM
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Fund manager abrdn has increased its stake in semiconductor tester AEM HoldingsAWX . On May 19, it acquired 104,400 shares on the open market for a total of $333,892.10 or an average of $3.20 each. This brings its total stake to 15.46 million shares, equivalent to 5.005%, up from 4.971%.
Fidelity, another asset manager, also recently increased its stake in AEM. On May 22, Fidelity acquired 150,400 shares at around $3.22 each. This brings its total stake to just below 15.6 million shares, or 5.04%.
Both investors are presumably trying to increase their holdings at a time when the semiconductor is on a down cycle.
From its peak of December 2021 peak of more than $5, AEM’s share price has declined by around 40% as the industry is hit by excess inventory and slowing demand amid a cloudier economic climate.
In contrast, James Toh Ban Leng, AEM’s lead independent director, had recently reduced his stake in AEM. Toh is a co-founder of investment firm Novo Tellus, which famously took a controlling stake in AEM and made manifold returns for itself and many other investors.
Most recently, on May 15, Toh sold 150,000 shares at an average price of $3.30.
Over the past week, PropNex’s executive director Kelvin Fong also increased his stake in Singapore’s largest real estate agency. On May 19, Fong directly acquired 398,200 shares on the open market for a total of $402,200, which is an average price of $1.01 each. On May 22, he again acquired 350,000 shares for a total of $360,500.
Fong now owns a total interest of just over 65.5 million shares, equivalent to 8.85%, up from 8.8%. Before these transactions, he had maintained his interest in PropNexOYY via his nominee accounts with Citibank and DBS, plus 200,000 shares held by his wife, Janet Lim Bee Hua.
On April 26, the government announced yet another round of cooling measures, especially for foreign residential home buyers. From an earlier 30% tax, they now have to pay a so-called additional buyer’s stamp duty of 60%.
In response, PropNex says it has a “resilient business model” as earnings are diversified across various market segments, including rental, HDB resale, landed, commercial and industrial segments, which are likely to be largely unaffected by the latest cooling measures barring unforeseen circumstances.
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PropNex further notes that Singaporeans and permanent residents account for 95% of private home sales transacted by the company for its FY2022 ended December 2022. “We do not expect the doubling of ABSD rate for foreigners to severely impact the overall market and our other major revenue segments of project marketing of new launches and private resale,” says the company.
