One company's poison is another's meat. As Internet fever reached its peak in April, Hang Lung Development decided it was time for a fresh look.
Chairman Ronnie Chan Chi-chung announced Hang Lung would become a technology-focused firm, leaving the less sexy business of real-estate development to 60 per cent-owned subsidiary Amoy Properties.
Up to then Amoy had acted as landlord for the group's investment properties, leaving the more profitable development role to the parent.
The rest, as they say is history. Technology is still in the doghouse after the Nasdaq Composite Index's spring bloodbath while property is back in favour as interest rates peak out.
Since the April 13 announcement of the group reshuffle, Amoy has gained 36.79 per cent and was the best performing stock among Hong Kong's top 60 companies last month. It closed on Friday at HK$7.25. Hang Lung, however, has gained only 20 per cent since April 13, weighed down by its technology exposure. It closed on Friday at $7.50.
Property analysts have lapped up Amoy's story. At least two described the move into development as a 'metamorphosis' transforming the stock's growth appeal.