Kim Heng Offshore (KHOM SP) Shares closed 84% higher for the week. Thomas Tan, Executive Chairman and CEO, has been buying up shares of the company, acquiring 500,000 shares for S$19k or an average price of 3.82 Sing cents per day on 3 and 4 May. The company also changed its name to Kim Heng (previously Kim Heng Offshore and Marine) to reflect its new strategy of diversifying into renewable projects. In 2021, the company won contracts to support the construction and to help service wind farms in Taiwan.
RH PetroGas (RHP SP) Shares have surged almost fourfold from last month to a 3-year high. In response to SGX’s query on the unusual trading activity, the company stated that it is currently in discussions with one of its controlling shareholders as regards to capitalisation of certain loans. The company is also in discussion with a bank on the possibility of obtaining bank financing. However, we note that the company is in a negative equity position of US$16mn as at end-2020.
Mermaid Maritime (MMT SP) The Oil & Gas service firm has proposed a non- renounceable non-underwritten rights issue with warrants. It has proposed an issue price of S$0.07 for each rights share on the basis of one rights share for every 20 existing ordinary shares. Shareholders will also receive 10 free detachable warrants for every one new ordinary share at an exercise price of S$0.07 per warrant.
CFM (CFM SP) shares more than doubled last week on heavy volume after announcing the acquisition of 51% stake in SING-SWE MM Biotechnology, for a total amount of up to S$6.1mn. SING-SWE MM Biotechnology distributes and sells pharmaceutical products, including certain viral test kits. Meanwhile, CFM is involved in the distribution and sale of gloves and other personal protective equipment.
Southern Alliance (SAML SP) and Fortress Minerals (FMIL SP) gained more than 20% last week after iron ore prices rebounded above US$200/ton on media reports that steel hub Tangshan plans to ease requirements for production cuts at its mills.
Genting Singapore (GENS SP) The company had qualified for the request-for-proposal (RFP) of Yokohama’s search for a commercial partner for a casino resort. While local authorities did not name the parties, NHK has reported that one of the groups was led by Genting Singapore, while the other was headed by Melco Resorts and Entertainment. Consensus estimates are 8 BUYS / 11 HOLDS / 1 SELL and a 12-month target price of S$0.95.
Trading Dashboard: Removed China Sunsine (CSSC SP) at S$0.54. Added Southern Alliance Mining (SAML SP) at S$1.10.