3 Little-Known Companies With Significant Share Buyback

#2 Straits Trading Company Ltd

The Straits Trading Company Limited has international stakes in resources, real estate, hospitality and investments. Its real estate ecosystem comprises majority or strategic stakes in Straits Real Estate, ARA Asset Management Limited and Far East Hospitality Holdings. It also has a diversified real estate portfolio that is wholly-owned by the Group. Straits Trading is also engaged in tin mining and smelting, and resource investments. It has majority stake in the world’s third-largest tin producer, Malaysia Smelting Corporation Berhad, which is dual listed on Bursa Malaysia and SGX-ST. As of the latest annual report, Straits’s revenue decreased by 20.2% to $ 363.6 million. Its net profit, however, increased by an impressive 21.4% to $100.4 million. Free cash flow was at an enviable level of $80.4 million. Cash balance reached an impressive and healthy level of $310.5 million. The decrease in revenue was made up by the lower cost of goods in the Tin production business. This has helped to boost the net profit of the company substantially. Straits has been purchasing its shares back since 26^th June 2020. In total it purchased 54,000 shares from the market. Total transactional value of all the shares amounted to $98,000 and share prices bought back were in the range of $1.61-1.64. Straits Trading last closed at $1.59, which values it at a P/E ratio of 7.63 and dividend yield of 3.80%.

#3 Zhongmin Baihui Retail Group Ltd

Zhongmin Baihui Retail Group Ltd (ZMBH) is principally engaged in the ownership, operation and management of department stores and supermarkets in Fujian Province. Outside of Fujian Province, the Group is involved in the outlet mall operation and management business in Changsha, Hunan Province As of the latest quarterly report, ZMBH’s revenue increased by 8.7% to RMB 1.05 billion. Its net profit increased by 29% to RMB 52.2 million. Free cash flow came in at a good level of RMB 183 million. As a result, it has boosted the cash balance to RMB 260 million. ZMBH has been purchasing its shares back since 7^th July 2020. In total it purchased 28,000 shares from the market. Total transactional value of all the shares amounted to $17,000 and share prices bought back were in the range of $0.595 – 0.6. ZMBH last closed at $0.595, which values it at a P/E ratio of 10.92 and dividend yield of 5.08%.