Insider Moves: Dufu Technology Corp, Chin Well Holdings, Xidelang Holdings, Sona Petroleum, Alam Maritim Resources

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Notable filings

BETWEEN June 22 and 26, notable shareholding changes in companies listed on Bursa Malaysia included the sale of over six million shares by Dufu Technology Corp Bhd’s former chairman Hsu Chin-Shui on June 19. The sale represented the disposal of Hsu’s 3.42% indirect stake but he still retains some 8.5 million shares or 4.83 % direct interest in Dufu (fundamental: 1.40; valuation: 0.90).

The transaction price was not disclosed but the sale came a day after the precision machining component manufacturer’s shareholders rejected a motion to re-elect Hsu as a director at its annual general meeting on June 18. Dufu came under the spotlight after allegations that some members of its senior management had misappropriated RM3.9 million. An investigative report on the allegation is expected to be out this month but Dufu has suspended the power and authority of its executive committee, which comprises Hsu, CEO Yong Poh Yow and chief financial officer Lee Hui Ta.

Filings show that carbon steel fastener manufacturer Chin Well Holdings Bhd’s (fundamental: 2.10; valuation: 2) co-founder Tsai Yung Yu ceased to be a substantial shareholder on June 22 after he disposed of 158.31 million shares or a 52.9% stake. The shares were held under a family vehicle known as Benua Handal Sdn Bhd, in which Tsai has a 32.6% stake. Chin Well later clarified that Tsai had transferred the 32.6% stake in Benua Handal to immediate family members and that the direct substantial shareholding of Chin Well remains unchanged.

Credit Suisse Securities (Europe) Ltd has emerged as a substantial shareholder in China Automobile Parts Holdings Ltd (fundamental: 1.95; valuation: 1.8). Filings show that Credit Suisse bought a 5.11% direct stake or 31.25 million shares in the company on the open market on June 19. On June 22, it upped its stake to 5.42% after buying another 1.86 million shares, also on the open market.

Meanwhile, the largest substantial shareholder of Xidelang Holdings Ltd (fundamental: 1.3; valuation: 1.5), Hongpeng International Holdings Ltd, has disposed of 138.25 million shares or a 10.47% direct stake in the maker of sports and casual shoes on the open market. Filings reveal that the shares were disposed of on June 24 at 13 sen apiece, reducing Hongpeng International’s shareholding to 34.04%. Hongpeng International is a vehicle of Xidelang’s managing director and CEO, Ding Peng Peng.

Notable movements

The share price of oil and gas special-purpose acquisition company Sona Petroleum Bhd (fundamental: NA; valuation: NA) has remained flat over the past three months but at its closing of 42 sen on July 1, the stock had fallen 12.5% in the last one year.

On June 19, Credit Suisse Securities (Europe) Ltd surfaced as Sona Petroleum’s substantial shareholder after it bought 71.42 million shares, representing 5.06% interest, on the open market. The transaction price was not revealed. Sona Petroleum said after the company’s AGM last Wednesday that it is confident of securing its first qualifying asset by year-end. It was reported that Sona is looking at onshore and shallow water oil and gas production assets in Southeast Asia, the Middle East and Africa. The company has until next July to make its first acquisition.

Tan Sri Quek Leng Chan’s vehicle Associated Land Sdn Bhd ceased to be a substantial shareholder in Alam Maritim Resources Bhd after it sold 19.4 million of the offshore support vessel operator’s shares in a direct off-market deal on June 18. The shares crossed at 55 sen apiece, which was the price on the open market. The sale reduced Associated Land’s stake from 6.49% to 4.39%.

Closing at 54 sen last Wednesday, Alam Maritim’s share price has shed 14.29% year to date and 65.38% year-on-year. The stock had reached a 52-week high of RM1.68 a share on July 4, 2014.

Sona-Petroleum_Chart_Cap52_theedgemarkets   Alam-Maritim_Chart_Cap52_theedgemarkets


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 Capital, The Edge Malaysia Weekly, on July 6 - 12, 2015.