One of the best investors the world has seen, Warren Buffett, is a huge advocate of businesses buying back their shares. He believes that share buybacks can increase shareholder value if done for the correct reasons.
On that note, here are three companies picked at random that have repurchased their shares thus far during the week, as of market open today.
Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6)
Yangzijiang is the largest China-based company in the Singapore stock market. It is also a leading shipbuilder in China in terms of manufacturing capability and capacity.
On 16 and 17 July 2018, Yangzijiang repurchased 2,914,400 shares in total at a price range of between S$0.86 and S$0.88 apiece. The overall cost was slightly more than S$2.5 million.
The shipbuilder’s shares closed at S$0.86 each on Thursday. This translates to a price-to-earnings (PE) ratio of 6 and a dividend yield of 5.2%.
Singapore Post Limited (SGX: S08)
Singapore Post has a history stretching back 150 years. The company currently offers eCommerce logistics, as well as mail and logistics solutions in Singapore and around the world.
On 16 and 19 July, Singapore Post bought back a total of 1,590,000 shares at a price range of between S$1.32 and S$1.34 per share. It spent slightly above S$2.1 million in all.
Shares in the company ended Thursday at S$1.34 apiece, giving a PE ratio of 27 and a dividend yield of 2.6%.
HRnetGroup Ltd (SGX: CHZ)
HRnetGroup, which went public in June 2017, is the biggest Asia-based recruitment agency in the Asia-Pacific region, excluding Japan.
On 18 and 19 July, the firm repurchased 500,000 shares ranging from S$0.8747 to S$0.8755 apiece, translating to a total cost of around S$439,000.
HRnetGroup closed at S$0.875 on Thursday. This translates to a PE ratio of 17 and a dividend yield of 2.6%.
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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 does not own shares in any companies mentioned.