Insider Moves: RCE Capital, Cempaka Empayar, Indah Pusaka, DGB Asia, A&M Realty and ES Ceramics Technology

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Notable filings

Among the notable shareholding changes that took place on Bursa Malaysia between March 23 and 27 was the disposal of 42 million shares of RCE Capital Bhd (fundamental: 1.4; valuation: 1.8) by Asas Kreatif Sdn Bhd, which ceased to be a substantial shareholder on March 20.                                           

Mohamad Zamrus Ghazali and Norsiha Othman, both deemed to have an interest in RCE Capital through Asas Kreatif, also ceased to be substantial shareholders.

On the same day, Cempaka Empayar Sdn Bhd acquired 55.152 million shares bringing its holding to 56.57%. Cempaka Empayar is wholly owned by Amcorp Group Bhd, which in turn is wholly owned by Clear Goal Sdn Bhd, controlled by Tan Sri Azman Hashim.

Following the filings, Azman Hashim resigned as chairman and non-independent, non-executive director. His 40-year-old son, Shahman Azman, replaced him in both roles.

The general loan financing services provider has been consistently buying back its shares on the open market over the past two years.

Also on March 20, Indah Pusaka Sdn Bhd sold 70.1 million shares of broadband service provider REDtone International Bhd (fundamental: 2.3; valuation 0.3).  The buyer was Juara Sejati Sdn Bhd.

Juara Sejati, which is controlled by Berjaya Corp Bhd, crossed the 33% control threshold to 38.81% and launched a mandatory general offer for REDtone.

Indah Pusaka is controlled by Datuk Seri Syed Ali Syed Abbas.

Meanwhile, Lembaga Tabung Haji and Sunbina Dunia Sdn Bhd have ceased to be substantial shareholders in Imaspro Corp Bhd. Lembaga Tabung Haji holds 4.6% after it disposed of 648,000 shares on March 25. Sunbina, which is controlled by Mohd Shafek Isa, sold 5.95 million shares on March 20.

Over at DGB Asia Bhd (fundamental: 1.65; valuation: 0.3), Satvinder Singh disposed of four million shares and ceased to be a substantial shareholder on March 18. Satvinder had emerged as a substantial shareholder on Feb 27 when he bought 749,000 shares.

The share sales came just one day before DGB Asia fixed the price of the two-for-one rights issue at 11 sen apiece.

Another notable filing was of the sale of 6.2 million shares of Top Glove Corp Bhd (fundamental: 2.5; valuation: 1.3) by the Employees Provident Fund (EPF) on March 23. The fund then ceased to be a substantial shareholder.

Notable movements

Over the past month, A&M Realty Bhd (fundamental: 2.3; valuation 2.4) has seen active trading volumes that has pushed its share price up 42.5% to a high of RM1.14.

A&M Realty is a property development and construction company. Chairman Datuk Ng Boon Thong acquired more than 5.68 million shares on the open market between March 19 and 23. He bought 5.9 million shares in the subsequent week, bringing his total shareholding to 70.78%.

Meanwhile, ES Ceramics Technology Bhd (fundamental: 3.00; valuation 1.50) has been enjoying a strong share price performance over the past one year. Its share price rose 205% to 30.5 sen last Thursday. Year to date, the share price has risen nearly 65%.

Against this backdrop, Tan Ching Ling ceased to be a substantial shareholder after he sold 1.75 million shares on the open market on March 26.

ES Ceramics specialises in ceramic dipping formers for gloves and  balloon moulds.

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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 April 6 - 12, 2015.