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CHINA NEW TOWN made a 10-m share buyback last week at 14 cents a share – more than twice the price it paid in Sept 08. Back then, it bought 600,000 shares.
Bullish sign? One can’t help but think so.
Adding to it is the fact that its independent non-executive director, Loh Weng Whye, has been buying shares too (see table).
Mr Loh, who now owns 700,000 China New Town shares, was formerly President of ST Energy Pte Ltd and SembCorp Energy Pte Ltd.
Loh Weng Whye, ID,
China New Town
China New Town
He was later appointed Advisor to Green Dot Capital, an investment and holding company under Temasek Holdings.
However, there have been negative signals too. A fund has trimmed its stake: Forum Asian Realty Income sold 12 m shares in Aug and September for about 12 cents apiece, lowering its deemed holding to 188 m shares or 6.99%.
And the co-vice chairman of China New Town, Stan Yue, sold all of his direct holding of 592,500 shares at 10 cents apiece in June 09.
The sale was almost 100% profit as the shares were derived from stock options that he exercised at S$0.0000227 apiece.
He has a deemed interest in another 5.3 million shares.
China New Town’s stock price has been mauled since its IPO at 83 cents in Nov 2007.
The company has suffered a slew of issues including hefty financing costs, write-downs in the fair value of investment properties and losses in cancellation of convertible bonds. These matters have been addressed this year.
China New Town (www.china-newtown.com) is one of a kind on the Singapore Exchange. It is not a property developer but a new town developer in the PRC. It plans and develops large-scale new town projects in the suburban areas of China’s largest cities. Currently, it has four new town projects in Shanghai, Wuxi, Shenyang and Changchun.
Ben Cheng, CEO, China New Town, speaking with analysts recently. Previously, he was CFO of the company. File photo by Leong Chan Teik
The company manages the entire development process of a new town project, starting with designing of the master plan of the new town, relocation and resettlement of incumbent residents and enterprises, clearing and preparation of the land.
It develops, clears and prepares residential plots so that they are suitable for public land auctions by the relevant land authorities to residential property developers.
It also acquires the land use rights to parts of the remaining land to develop, manage and operate commercial properties, such as hotels and convention centers.
Recent story: CHINA NEW TOWN: Trading way below NAV
