By Amanda Lee
Hongkong Land's shares are on track for its biggest one-day percentage gain in over 20 years on hope that the company's new business strategy will focus on long-term profitability and increase shareholder returns.
Shares are 15% higher at US$4.47 at midday Singapore on Wednesday.
The property group said after the market closed Tuesday that it will simplify its business and focus on investment properties in Asia's gateway cities, generating growth in long-term recurring income.
Hongkong Land will also stop investing in the build-to-sell segment. It will instead recycle capital out from the segment into new integrated commercial property opportunities, the company added.
Investors are likely to welcome Hongkong Land's new strategy, as it offers a better outlook for long-term profit and dividends, Citi Research analysts write in a note. Executing the strategy will be key for the company, they add.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
October 30, 2024 00:11 ET (04:11 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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