Insider Moves

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Notable filings
Notable shareholding changes from March 9 to 13 included that in Kumpulan Powernet Bhd (fundamental: 1.65; valuation: 1.2), a warp-knitted fabrics manufacturer.

On March 9, Advance Synergy Capital Sdn Bhd disposed of a 20% stake in Powernet through off-market transactions to Woo Wai Mun, a 41-year-old individual investor from Kuala Lumpur.

The 11.27 million shares were transacted at 43 sen apiece — 21% higher than the closing price of 35.5 sen on the same day.

A unit of Advance Synergy Bhd, Advance Synergy Capital had held the 20% stake since January 2004. It is now no longer a substantial shareholder of Powernet.

Over at YTL Power International Bhd (fundamental: 1.2; valuation: 2.4), AmanahRaya Trustees Bhd-Skim Amanah Saham Bumiputera purchased 360.46 million shares or a 5.12% stake in the company on March 9.

Following the acquisition, AmanahRaya emerged as a substantial shareholder in the utility group.

On March 10, the Employees Provident Fund divested 392,100 YTL Power shares, bringing its stake down to 5.53%.

YTL Power had closed at RM1.56 on March 9 and 10.

Business tycoon Tan Sri Yeoh Tiong Lay and his family have recently been strengthening their grip on YTL Corp Bhd, YTL Power and YTL Land & Development Bhd. YTL Corp holds a 49.88% direct stake in YTL Power.

Meanwhile, Pahang businessman Tan Sri Pheng Yin Huah further pared down his stake in Kinsteel Bhd (fundamental: 0; valuation: 1.2), a Kuantan-based steel player.

On March 5, Pheng’s Kin Kee Holdings Sdn Bhd sold three million Kinsteel shares, lowering its equity interest to 22.63% from 22.91%. The stock closed at 14 sen the same day, before falling to a 52-week low of 12.5 sen on March 18.

Interestingly, Kinsteel had reduced its stake in ailing steelmaker Perwaja Holdings Bhd from 37.34% to 31.25% in December last year, the first time it has done so since Perwaja floated its shares in August 2008.

Kinsteel is presently working with a Chinese turnkey contractor in a RM200 million project to enhance and upgrade its manufacturing operations in Gurun, Kedah.

At the same time, Perwaja has approached China-based alloy manufacturer Zhiyuan Investment Group Co Ltd for a capital injection to revive its steel operations in Kemaman, Terengganu.

insidermoves_23March2015_theedgemarkets

Notable movements
Shares of Sumatec Resources Bhd (fundamental: 2.4; valuation: 0.3) have fallen 64% from a 52-week high of 62 sen on Aug 19 last year. The stock closed at 22.5 sen on March 18, a gain of 2 sen or 9.76% year to date.

Possibly taking advantage of the fall in the share price, Tan Sri Halim Saad purchased 40 million shares or a 1.11% stake in Sumatec through off-market transactions on March 10.

This raised his holdings in the oil and gas exploration firm to 23.17%. The shares were transacted at 20.5 sen apiece, the same price the stock closed at that day.

Meanwhile, Tekad Mulia Sdn Bhd ceased to be a substantial shareholder of Sumatec after disposing of 46 million shares via a private arrangement.

Tekad Mulia is owned by Chan Yoke Peng, the former managing director of Sumatec who still sits on the board as a non-executive director.

Imaspro Corp Bhd (fundamental: 1.45; valuation: 0.6) saw its share price rise 36 sen or 28.8% year to date to settle at RM1.61 on March 18.

According to theedgemarkets.com, the likelihood of a corporate exercise for Imaspro is high. The company manufactures and distributes pesticides and related agrochemicals.

Imaspro saw its substantial shareholder, Sunbina Dunia Sdn Bhd, dispose of 3.52 million shares or a 4.4% stake via off-market transactions from March 4 to 9.

On March 4 and 5, 1.53 million shares were transacted at RM1.30 apiece. Another 660,000 shares were done at RM1.50 on March 6, followed by 1.33 million shares at RM1.50 on March 9.

Sunbina Dunia, which is owned by Imaspro chairman Mohd Shafek Isa, is left with a 13.59% stake after the disposals.

Meanwhile, Lembaga Tabung Haji had also on March 6 divested 37,800 shares in Imaspro, leaving the pilgrim fund with a 5.67% stake in the company.

Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in The Edge Malaysia Weekly, on 23 March, 2015.