|Purchaser of Li Heng
|Date of purchase||No. of shares purchased||Value/share (S$)||Total value (S$)|
David Loh, substantial shareholder
|Chen Jianlong, exec chairman||15-10-2008||2,900,000||0.2711||786,100|
|Proud City Management Limited||10-10-2008||686,000||n.a.||n.a.|
|Upper Win Investments||10-10-2008||2,814,000||n.a.||n.a.|
|Chen Feng, CEO||10-10-2008||686,000||0.265||182,000|
LI HENG Chemical Fibre was listed on the SGX in March 2008 at 80 cents a share. Recently, it traded at 25 cents.
The price slump of Li Heng has attracted a spate of buying by major shareholders in recent weeks. The most striking may well be the move by David Loh, 45, a substantial shareholder.
In one fell swoop, he bought 8 million shares on Oct 16, his first direct holding of the stock. The purchase price was not disclosed. He has a deemed interest in another 170 million shares, which is 10% of the issued share capital of Li Heng.
David is, of course, the star broker from UOB Kay Hian. He and his cousin, Han Seng Juan, 46, were cited in a recent Business Times article as 'The A-Team' or 'The Dream Team' in the stock broking industry.
Aside from David, there have been big buys by the company’s management, including the CEO and executive chairman, and other substantial shareholders (see table).
This morning, OCBC Investment Research said it is maintaining its "buy" recommendation on Li Heng due to progress being made in the company's phase three expansion and continued strong demand for its products.
OCBC analyst Carey Wong said that Li Heng's order books are filled up for the fourth quarter and could spill over into next year.
Demand for high-end yarns remains relatively stable but lower-end products could be slowing due to the increasingly gloomy economic picture, the analyst said.
OCBC has cut its price target for Li Heng to $0.78 from $1.16 to reflect increased stock market volatility.
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