A toy designer and a luxury clothing supply-chain manager had little in common two months ago. But since then, they have each reduced their stakes in their original businesses to capitalise on the boom in renewable energy, and their share prices have more than doubled as a result.
So-called 'sector switching' has been pervasive as Hong Kong-listed companies suddenly cut back on their original business and jump to an often-unrelated industry in a bid to catch the latest investment trend.
There have been three major waves this decade, starting first with the dotcom bubble, then the commodity bull market in 2007 and now renewable energy.
Market enthusiasm for a company's new line of business can send its share price soaring to new heights, but once that interest wears off, a free fall is often around the corner.
RBI Holdings, which is set to become Apollo Solar Energy Technology Holdings, and Hembly International Holdings have zoomed up 266 per cent and 130 per cent respectively since announcing their forays into renewable energy.
RBI reached an agreement to sell off a 49 per cent stake in its toy business and acquire a solar module maker. Hembly has already scaled down its garment distribution business in preparation to become a waste-to-energy provider.