A total of 280.48 million shares worth RM299.14 million were traded off market in blocks of at least 400,000 shares from July 8 to 13.

Among the notable transactions were those at Unisem (M) Bhd (fundamental: 1.25; valuation: 0.60). The semiconductor firm saw some 15 million shares or a 2.16% stake transacted at RM2.29 a share or a total of RM34.35 million in direct deals on July 10. The price was at a 3.78% discount to the stock’s RM2.38 close that day.

The transaction corresponded with Unisem’s earlier announcement that its chairman and group managing director John Chia Sin Tet, through Jayvest Holdings Sdn Bhd, will place out 15 million shares to an institutional investor. The identity of the buyer was unknown at the time of writing. Unisem’s institutional investors include Lembaga Tabung Haji, which held a 2.89% stake as at March 6.

Over at Engtex Group Bhd (fundamental: 0.90; valuation: 1.80), a block of 1.5 million shares and another block of 3.5 million shares crossed off market on July 10. Based on Bloomberg data, the shares changed hands at RM1.18 apiece, which was at a discount to the closing price of RM1.20 that day.

The pipe-maker has been touted as among those that would benefit from the completion of Selangor’s water restructuring deal that saw a breakthrough last Monday with the state and federal governments signing a supplemental water agreement. This means the exercise can proceed without Selangor giving up its land. Analysts say the agreement is a positive move that paves the way for much-needed pipe replacement in the state.

Meanwhile, one block of 1.05 million Focus Lumber Bhd (fundamental: 1.45; valuation: 1.80) shares were traded off market on July 8 at RM1.30 apiece in a direct deal — at a 4.4% discount to its closing price that day. Then on July 13, another 2.7 million shares crossed at RM1.30, 7.1% lower than the closing price of RM1.40. Together, the two blocks represent a 3.12% stake.

Filings show that the buyer of the first block was Lin Hao Yu, the brother of the company’s managing director Lin Hao Wen. Hao Yu now has 8.55% direct interest and 14.87% indirect stake in the plywood, veneer and laminated veneer manufacturer.

Focus Lumber’s shares have grown rapidly this year. Year to date, they have gained 48.54%. In a May 27 note, Insider Asia says there is still upside for the stock, given its low valuation, high dividend yield and solid balance sheet. With 97.8% of Focus Lumber’s revenue in 2014 derived from exports and a significant 64.9% of sales going to the US, the company stands to benefit from both the strong US economic growth momentum and the dollar.

At Eden Inc Bhd (fundamental: 0; valuation: 0.90), a restaurant operator-cum-manufacturer of low-voltage switchgear and electrical components has seen an active week of trading. Five million Eden shares or a 1.6% stake crossed off market in two direct deals on July 10 at 20 sen apiece — a 33% discount to what the stock would have fetched on the open market the same day.

On July 13, SEAL Inc Bhd (fundamental: 1.20; valuation: 0.90) saw 5.66 million shares or a 2.62% stake cross off market via a direct deal at 53 sen apiece. This was at a slight premium to the stock’s closing price of 52.5 sen that day. The buyer was unknown at press time but the seller is likely Kapen Capital Partners Ltd, which, filings show, ceased to be a substantial shareholder after disposing of 5.66 million shares or a 2.62% stake on the same day. Kapen had emerged as a substantial shareholder after buying a 9.29% stake at 48.7 sen a share on June 1, 2011. After the disposal, it should still have 5.8 million shares or a 2.69% 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 Capital, The Edge Malaysia Weekly, on July 20 - 26, 2015.

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