(Nov 13): Shares in Mainboard-listed conglomerate Hong Leong Asia (HLA) have already rallied 76.5% this year. But they may still be undervalued, especially since the company’s management appears to be taking a better look at the businesses within the group.

On Oct 30, HLA announced that it would be restructuring its consumer goods unit Xinfei. The latter manufactures white goods in China, including refrigerators, freezers and air-conditioners. Xinfei will be ceasing its manufacturing and production activities. Instead, it will explore strategic participation with potential partners using Xinfei’s trademark and intellectual property.

HLA’s shares opened 5% higher on Oct 31, following the announcement, rising to $1.26, from $1.20 at close on Oct 30. They have since slipped slightly, closing at $1.225 on Nov 7. That gives the company a market capitalisation of $433.73 million.

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