Last week, XMH Holdings has been buying back its shares, the first time in nearly four years.


No. of shares bought

Buy price

% of traded

6 July



5 July




4 July




3 July




2 July




XMH -- which is 18.8% owned by Koh Boon Hwee-backed private equity fund Credence Capital -- bought back 526,000 shares (see table).

They accounted for virtually all of the traded volume on those days.

XMH has been a thinly traded stock, languishing as its business been impacted by the downturn in the offshore marine and coal industries, among others.

XMH was chiefly a distributor of marine diesel engines until it acquired in 2013-2014:

1) Mech-Power Generator, which assembles and installs standby generator sets; and
2) Z-Power Automation, which designs and manufactures marine switchboards, remote control distribution system and marine automation products.

Credence Capital invested in XMH in 2013 at $1.11 and $1.26 (adjusted for a 2016 share consolidation).

XMH's FY2018 (ended April 2018) saw a net loss of $3.5 million, the second consecutive annual loss. 

But could XMH have bottomed out? The share buybacks appear to signal that, as well as reflect the big discount that the stock trades to its 55.4-cent net asset value. 

The NAV, in turn, is based on the historical cost of the company's Tuas HQ building, whose market value is substantially higher at around S$80 million, according to an external valuation.









Gross profit




Gross profit margin




Net loss 
attributable to shareholders




In addition, the management sounded upbeat, citing:

♦ An increase in customer enquiries, and S$30 million in orders secured in the past four months from several sectors such as utilities, data centres, marine vessels and industrials.

The majority of these orders is expected to be fulfilled in FY19. XMH did not disclose its total orderbook, saying that would be available in its upcoming annual report.

♦ A jump in inventories from S$26.9 million as at end-Jan 2018 to S$33.3 million as at end-April 2018.

♦  The setting up of branches and employment of new staff in Indonesia to capture a potential return of business in its engine distribution segment.

Elvin Tan 6.14Elvin Tan, executive chairman & CEO, XMH Holdings: He owns 40.3% of XMH. NextInsight file photo"We believe that there is a gradual pickup in industry sentiment, which is reflected in our recent order wins," said executive chairman Elvin Tan.

"Overall, opportunities are beginning to present themselves in new and existing markets for the Group and we will put our best foot forward to convert these opportunities into tangible results.”

For an idea of the marine engines that XMH distributes, watch this video -->

Share Prices

Counter NameLastChange
AEM Holdings4.1700.050
Avi-Tech Electronics0.3950.005
China Sunsine0.530-
Food Empire0.820-
Fortress Minerals0.4000.005
Geo Energy Res0.385-
Golden Energy0.425-
GSS Energy0.0790.001
ISDN Holdings0.6450.010
IX Biopharma0.2400.005
Jiutian Chemical0.0880.001
KSH Holdings0.360-
Leader Env0.076-0.002
Medtecs Intl0.380-
Moya Asia0.066-0.002
Nordic Group0.365-
Oxley Holdings0.205-
REX International0.3600.015
Sinostar PEC0.330-0.010
Southern Alliance Mining0.800-0.005
Sri Trang Agro1.360-0.040
Straco Corp.0.510-
Sunpower Group0.570-0.015
The Trendlines0.1050.001
Totm Technologies0.205-
UG Healthcare0.345-
Uni-Asia Group1.4500.050
Wilmar Intl4.370-0.010
Yangzijiang Shipbldg1.4000.010

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1387 guests and no members online