Share buybacks by a company can be a signal to the market that its shares are undervalued. On that note, let’s look at three Singapore listed businesses that have repurchased their shares thus far during the week, as of the market open on Friday.
Keppel REIT (SGX: K71U)
Keppel REIT is a commercial real estate investment trust (REIT) with assets mainly in Singapore and Australia. On 29 to 31 July, and 1 August 2019, the REIT’s manager repurchased 6,000,000 shares at a price range of S$1.24 to S$1.25 each, giving a total cost of slightly below S$7.5 million.
For the REIT’s second quarter ended 30 June 2019, property income fell 22.7% to S$39.9 million, net property income tumbled 37.8% while distribution per unit decreased by 2.1% to 1.39 Singapore cents. The poorer performance for the latest quarter was mainly due to lower one-off income from Ocean Financial Centre, and lower property income and net property income from Bugis Junction Towers.
On Thursday, Keppel REIT’s units closed at S$1.23 apiece. The price translates to a price-to-book ratio of 0.9 and a distribution yield of 4.5%.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore is a global service provider of infrastructure-related engineering services, geo-spatial and healthcare technology. On 30 and 31 July, the group clawed back a total of 1,687,100 shares between S$0.77 and S$0.78 per share. The total cost came up to slightly over S$1.3 million.
For its fiscal year ended 31 March 2019, Boustead Singapore’s top-line climbed 22% year-on-year to S$470.6 million, but net profit (after adjusting for one-off items) fell 2% to S$29.8 million. For highlights of the conglomerate’s annual general meeting held on 26 July, you can head here.
Boustead Singapore’s shares last changed hands at S$0.75 apiece on Thursday. At that share price, it had a price-to-earnings (PE) ratio of around 11 and a dividend yield of 4%.
Singapore Press Holdings Limited (SGX: T39)
Singapore Press Holdings (SPH) is a leading media organisation in Asia with a focus on property investments as well. On 31 July, the company repurchased 700,000 shares ranging from S$2.19 to S$2.22 apiece, translating to a total cost of over S$1.5 million.
For SPH’s third quarter, operating revenue declined by 1.6%, to S$246.1 million, while net profit plunged 44.1% to S$26.2 million. The fall in sales was largely due to lower print advertisement revenue.
SPH shares ended Thursday at S$2.18 each, giving a PE ratio of around 14 and a dividend yield of 3.9%, excluding any special dividend.
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 Boustead Singapore Limited. Motley Fool Singapore contributor Sudhan P owns shares in Boustead Singapore Limited.