The Motley Fool

What to Know About Share Buybacks by Singapore Companies in April 2019

In April, 19 companies bought back 29.6 million shares or units for a total amount of S$35.5 million. The latest buyback amount has fallen from March 2019’s figure of S$53.5 million and is down significantly from April 2018’s amount of S$117 million. The data was released by the Singapore Exchange in a report recently.

The top six companies with the most significant share buybacks in April 2019 were (total amount spent given in brackets):

  1. Oversea-Chinese Banking Corporation Limited (SGX: O39) (S$25.56 million);
  2. Keppel REIT (SGX: K71U) (S$2.67 million);
  3. Hong Fok Corporation Limited (SGX: H30) (S$2.18 million);
  4. Global Investments Ltd (SGX: B73) (S$1.97 million);
  5. Stamford Land Corporation Ltd (SGX: H07) (S$1.11 million);
  6. Best World International Limited (SGX: CGN) (S$0.81 million).

Best World, embattled by a short attack recently, repurchased 420,000 shares in April. The last time the company bought back its shares was in June 2018.

For its financial year ended 31 December 2018, Best World reported a 24% year-on-year growth in revenue to S$266.3 million while net profit jumped 30.9% to S$72.9 million. The huge improvement was largely due to the recognition of sales from the company’s franchise segment in China, where products are sold at a higher price point compared to its export segment. China brought in the bulk of total revenue at 54%. However, Bonitas Research, the company behind the short report, said that it believes that “Best World is a fraud and that its Chinese sales are a fraction of what was reported to shareholders”.

Last month, companies that conducted their first share repurchases for 2019 included Kim Heng Offshore & Marine Holdings Ltd (SGX: 5G2) and Axcelasia Inc (SGX: 42U).

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited and Oversea-Chinese Banking Corporation Limited. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited.