Wee Ee Cheong raises UOB stake after FY2024 record net profit

OVER the five trading sessions from Feb 14 to Feb 20, institutions were net sellers of Singapore stocks, leading to a net institutional outflow of S$217 million, reversing the net inflow of S$63 million over the preceding five sessions. This brings the net institutional outflow for the 2025 year to Feb 20 to S$850 million.

Institutional flows

Over the five trading sessions through to Feb 20, the stocks that led the net institutional outflow included Singtel, OCBC, DBS, UOB, Singapore Exchange, CapitaLand Ascendas Real Estate Investment Trust (Reit), CapitaLand Investment, Keppel, Mapletree Industrial Trust, and Sats.

Meanwhile, the stocks that led the net institutional inflow included Yangzijiang Shipbuilding, iFast Corporation, Yangzijiang Financial Holding, Singapore Technologies Engineering, Sembcorp Industries, Genting Singapore, Hongkong Land, Jardine Matheson, Singapore Airlines, and Japfa.

Consequently, over the five sessions, from a sector perspective, financial services and Reits experienced the highest net institutional outflow, while industrials and technology saw the most net institutional inflow.

Share buybacks

The five sessions saw six primary-listed companies conduct buybacks with a total consideration of S$1,414,758, a notch higher than the preceding 10 sessions.

The seasonal decline in buyback filings is attributed to the busy schedule related to the release of FY2024 financial statements in February.

SIA Engineering

SIA Engineering Company (SIAEC) resumed its buybacks, buying back 438,700 shares at an average price of S$2.41 apiece. This saw SIAEC increase the total shares repurchased under its current mandate to 0.49 per cent of its issued shares (excluding treasury shares), compared with 0.22 per cent for the previous financial year.

On Feb 14, SIAEC provided a quarterly business update, with operating statistics revealing that it handled 117,544 flights for the nine months ended Dec 31, 2024, up 9 per cent from the corresponding period in the previous year.

Its 9M FY2025 revenue also increased 11.8 per cent to S$901 million, from S$805.7 million in the same period a year earlier.

This led to a turnaround in operating performance, from a loss of S$3.3 million in 9M FY2024 to a profit of S$8.1 million in 9M FY2025. The share of profits from associated and joint venture companies also improved by S$17 million to S$107 million.

The company noted that despite the healthy demand for maintenance, repair and overhaul, the industry faces supply chain challenges, rising costs, and a tight labour market.

But its new enterprise operating system and ongoing investments are expected to enhance resilience and support long-term growth and profitability.

ESR-Reit

ESR Reit Management bought back 2.5 million units of ESR Reit on Feb 18 at an average price of S$0.249 per unit. This took the number of units acquired on the current buyback mandate to 26.5 million units or 0.345 per cent of the outstanding issued units.

On Feb 10, the Reit’s management proposed a unit consolidation which would see one consolidated ESR Reit unit granted for every 10 existing units in the Reit at a date to be determined.

The proposal received approval in principle from Singapore Exchange (SGX) on Feb 13, subject to compliance with SGX’s listing requirements for consolidated units, and unitholders’ approval at the Reit’s forthcoming extraordinary general meeting over the proposed move.

ESR Reit Management believes the proposed unit consolidation will reduce trading fluctuations, decrease market capitalisation volatility, and better align unit price movements with general market trends.

Director transactions

The five trading sessions saw less than 40 director interests and substantial shareholdings filed for more than 20 primary-listed stocks.

Directors or chief executive officers filed nine acquisitions and no disposals, while substantial shareholders filed one acquisition and nine disposals.

UOB

On Feb 19, UOB deputy chairman and CEO Wee Ee Cheong acquired 200,000 shares at an average price of S$38.65 per share. This increased his direct interest to 0.35 per cent, and total interest from 10.73 per cent to 10.74 per cent.

This followed the bank reporting a record net profit of S$6 billion for its FY2024, ended Dec 31.

Wee highlighted that the record net profit was driven by strong fee, trading, and investment income. He added that the group’s long-term investments in regional platforms are paying off, and that he expects continued revenue growth this year.

Despite global uncertainties, he also relayed confidence in Asean’s resilience, supported by higher domestic retail spending and increased foreign direct investment.

He pointed out that UOB’s strengthened market position, enlarged customer base, and enhanced platforms will help it seize regional opportunities amid global trade and supply chain reconfiguration.

With more than 35 years of banking experience, Wee is actively engaged in the group, industry, and community through various industry bodies.

UOB also announced a significant capital distribution strategy, which includes a new share buyback programme worth S$2 billion. This will involve acquiring shares from the open market and subsequently cancelling them.

This move is in addition to the existing share buybacks designed for the bank’s long-term incentive plans for employees. This programme is part of a larger S$3 billion package aimed at rewarding shareholders and optimising the bank’s capital position.

XMH Holdings

XMH Holdings chairman and managing director Tan Tin Yeow has continued to add to his interests, acquiring 96,900 shares at an average price of S$0.698 per share on Feb 12 and 13.

This brings his total interest from 64 per cent to 64.09 per cent. Tan has gradually increased his total interest from 41.27 per cent in July 2022.

As a provider of propulsion and power-generation products, XMH Holdings operates through three main segments: distribution, after-sales, and projects.

The distribution segment handles propulsion engines, the after-sales segment provides services and spare parts, and the projects segment focuses on power generator sets.

The group’s origins date back to 1955, when it began as a small machinery-repair and maintenance shop in Kitchener Road.

XMH Holdings was removed from the SGX watch list on Nov 15, 2024, and reported its results for the first half of FY2025 (ended Oct 31) on Dec 12, 2024.

For H1, the company attributed S$44.6 million of its revenue to Indonesia, which was the highest from among all its geographical markets.

Since reporting the results for the six months, Tan has increased his total interest from 63.59 per cent.

He has overall responsibility over the group, including over strategy formulation, corporate planning, business development, and potential acquisitions.

He also established the distribution arm and secured exclusive distributorships for the group, and has more than 30 years of experience in the marine and industrial diesel engines industry.

AcroMeta Group

On Feb 19, executive director Lawrence Toh acquired 1,510,000 shares at an average price of S$0.04 apiece. With a consideration of S$60,410, this increased his total interest from 4.22 per cent to 4.66 per cent.

Listed on Catalist, AcroMeta Group is a specialist maintenance service provider for controlled environments and commercial air-conditioning.

Toh was appointed to the board in August 2024.

He has extensive experience and expertise in the electronic parts and electronic communications equipment industry in the Asia-Pacific region.

In January, AcroMeta Group non-executive chairman and independent director Mahtani Bhagwandas said that FY2024 (ended Sep 30) was a period of significant transition for the group.

This involved the board taking steps to undertake strategic divestments against the backdrop of persistent global economic headwinds and evolving market dynamics.

In pursuit of new growth opportunities, AcroMeta Lifestyle was established as a wholly owned subsidiary of AcroMeta Group. The resolution to diversify the group’s existing business into this new venture was approved at the Jan 27 annual general meeting.

This new business segment will focus on the innovation, distribution, and marketing of lifestyle-oriented consumer electronics.

Acknowledging the high competitiveness within the lifestyle-oriented consumer electronics sector, the group also noted that it will initially focus on niche sectors, such as the lifestyle portable audio industry, which according to industry research is expected to see a global compound annual growth rate of 10.9 per cent from 2024 to 2032.

Toh also oversees the group’s business strategy, leading business development activities to explore and assess new opportunities for future expansion.

In addition, he manages corporate finance functions in fundraising activities, and handles investor relations and shareholder communication.

Marco Polo Marine

On Feb 19, Marco Polo Marine non-executive director Darren Teo acquired one million shares at S$0.053 per share.

This increased his direct interest from 0.21 per cent to 0.23 per cent.

He also holds deemed interest through Apricot Capital, which holds a total of 607,142,857 of the shares in Marco Polo Marine. Teo indirectly owns 20 per cent of the issued and paid-up share capital of the company.

This brings his total interest in Marco Polo Marine to 16.4 per cent.

The writer is the market strategist at Singapore Exchange (SGX). To read SGX’s market research reports, visit sgx.com/research.