Singapore’s Big Winner of the Week: Wing Tai Holdings Limited

Wing Tai Holdings Limited (SGX: W05) has seen its shares gain 6.7% since last Friday to close at S$1.755 yesterday. Given that Singapore’s market bellwether, the Straits Times Index (SGX: ^STI), put on only 2.1% during the same period, this makes Wing Tai a big winner this week.

As noted by my Foolish colleague, James Yeo, the company is a distributor of well-known apparel retail brands like G2000TopshopFox, and Dorothy Perkins. It is also a property developer, among other things.

Nothing was filed by Wing Tai with stock exchange operator Singapore Exchange this week with regards to the company.

But from Wing Tai’s latest filing in December 2014, it can be seen that the firm had bought back some of its shares. For the month of December alone, Wing Tai had clawed back 2.164 million shares, or 0.275% of its issued shares. The company paid a total of around S$3.5 million for the share buybacks.

Most of the share re-purchases came in December as the only other time it had bought back its shares was in February , when it purchased 400,000 shares from the open market. For the whole of 2014, Wing Tai purchased around S$4.2 million of its shares.

Companies do share buy backs for many reasons. One of the major reasons for doing so would be to create value for their shareholders – that’s especially so when the share buyback is done at a price where the firm’s undervalued.

Wing Tai’s current market capitalisation stands at S$1.4 billion. It’s going at 5.4 times its historical earnings or 0.5 times its book value.

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool's free investing newsletter. Written by David KuoTake Stock Singapore tells you exactly what's happening in today's markets, and shows how you can GROW your wealth in the years ahead.

The Motley Fool's purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.