Off-Market Trades: Bertam Alliance, Kanger International, Top Glove, YNH Property

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FROM May 13 to 19, a total of 544.68 million shares worth RM693.71 million changed hands off market in blocks of at least 450,000.

Notable trades included Bertam Alliance Bhd (fundamental: 1.35; valuation: 1.10), which saw 35.5 million shares or a 17% stake change hands in four direct trades on May 18. One transaction can be traced back to Bertam Alliance managing director Lim Nyok Fuh, who acquired 18.5 million shares or an 8.95% stake through a direct trade at 84 sen apiece — 22.6% higher than the then prevailing market price of 68.5 sen.

May 19 filings did not show the size of Lim’s holding in the construction and property outfit following the purchase. He emerged as a substantial shareholder on March 31 with 12 million shares or a 5.8% stake and had a 7.38% stake as at April 6.

Incidentally, a May 8 filing showed Bertam Alliance’s second largest shareholder, Bond Resources Sdn Bhd, selling 12 million shares on March 31 and 5.4 million shares on March 26 but did not state how many shares it had after the deals. The company’s net profit for the first quarter ended March 31, 2015, expanded by more than eight times year on year to RM3.08 million, thanks to robust property development activities.

Meanwhile, ACE Market-listed Kanger International Bhd (fundamental: NA; valuation: NA) saw 37.51 million shares or a 7.05% stake change hands in direct and block trades from May 13 to 19.

On May 14, the integrated bamboo manufacturer saw 26.5 million shares or a 4.98% stake change hands in five direct trades at 15.5 sen apiece, 34% below the then prevailing market price of 23.5 sen. A day earlier, two million shares were swapped in a direct trade at 30 sen apiece, or 20% above the 25 sen apiece the stock fetched on the market.

In reply to an unusual market activity query by Bursa Malaysia on May 19, Kanger said it was not aware of anything that could have caused the sharp fall in its share price on high volumes. Kanger, which closed at 41 sen on April 7, saw its share price halved over six weeks to 21 sen on May 19 and 20 sen on May 20. Its FY2014 net profit increased 41.5% year on year to RM7.02 million even as revenue gained 33% to RM66.72 million.

Top Glove Corp Bhd (fundamental: 2.5; valuation: 1.3) saw 32.15 million shares or a 5.2% block change hands in a direct deal at RM5.17 on May 15, which was 6.85% below the market price of RM5.55 apiece. Nonetheless, filings show this is likely a swapping of shares between Firstway United Corp and Top Glove Holding Sdn Bhd, which have the same shareholders. Firstway United emerged as a substantial shareholder in Top Glove after it acquired the 5.2% block from Top Glove Holding, which ceased to be a substantial shareholder. Top Glove chairman Lim Wee Chai is deemed interested in the stake. Closing at RM5.45 last Wednesday, Top Glove shares were up 22.97% since the beginning of the year.

Over at YNH Property Bhd (fundamental: 0.6; valuation: 1.6), some 12 million shares or a 3% stake was transacted in direct trades at between RM1.90 and RM2.08 apiece from May 13 to 18.

Filings show managing director Datuk Yu Kuan Huat disposing of 1.59 million shares on May 18, paring his direct stake to 9.04%, and is deemed interested in another 23.06%. His brother, YNH chairman Dr Yu Kuan Chon, saw his direct holding increase to 19.18% after buying 1.8 million shares on May 20 and is deemed interested in another 13%. Collectively, the brothers have 32.1% of YNH, which has been buying back its shares. Year to date, YNH’s share price has shed 6.73% to close at RM1.94 last Wednesday. Aberdeen Asset Management PLC and its subsidiaries have a 15.56% stake.

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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 May 25 - 31, 2015.