Hong Kong Stock Market News | WAI YUEN TONG soared over 222%, its subsidiary plans to sell Hong Kong properties for HKD 41 million.
WAI YUEN TONG's stock price surged by over 222%, reaching HKD 0.24, with a trading volume of HKD 5.79 million. The company plans to sell properties in Hong Kong for HKD 41 million to realize value and reduce debt. Debang Securities pointed out that the pharmaceutical industry currently has long-term investment potential, with traditional Chinese medicine offering high cost-effectiveness and strong performance. It is recommended to pay attention to oversold small and medium-cap stocks, position for the first-quarter report, and focus on innovation, international expansion, and traditional Chinese medicine as investment themes. The investment logic of domestic aging population will prevail over the next decade.
Zhitong App learned that WAI YUEN TONG (00897) surged over 222%, as of the time of publication, it rose by 222.08% to HKD 0.24, with a turnover of HKD 5.79 million.
On the news front, WAI YUEN TONG and WANG ON GROUP recently issued a joint announcement. On March 1, 2024, the seller, Guang Jun Development Limited (an indirect wholly-owned subsidiary of WAI YUEN TONG), entered into a temporary agreement with the buyer, Li Wei Cheng, and property agent Jing Hua Property Agency Limited. The seller agreed to sell, and the buyer agreed to purchase the property for HKD 41 million.
The announcement stated that the property was purchased by the seller in 2008 and is currently used by WAI YUEN TONG for operating its own stores. Considering the current retail property market conditions and the quality of the property (including its location, age, surrounding facilities, and redevelopment potential), the boards of directors of WANG ON GROUP and WAI YUEN TONG believe that the sale not only provides an opportunity for WANG ON GROUP and WAI YUEN TONG to realize the value of the property at the right time but also to use the proceeds from the sale to repay bank loans to reduce debt. At the same time, leasing back the property will allow WAI YUEN TONG to continue its retail operations.
Debang Securities pointed out that the pharmaceutical sector is currently in a window for medium to long-term allocation, with traditional Chinese medicine showing more prominent cost-effectiveness, lower valuation, relatively good performance, and many potential catalysts. In the short term, it is recommended to continue focusing on oversold small and medium-sized stocks, layout for the first quarter report, select high-quality medium to long-term stocks, and from a medium to long-term perspective, innovation, going global, and traditional Chinese medicine remain the main investment themes. The investment logic of domestic aging will run through the next decade, and related sectors and stocks are worth long-term allocation.