Hot stock: Hong Fok's shares surge 25%

SHARES of property developer Hong Fok Corporation rose 24.7 per cent or S$0.175 to S$0.885 on Thursday, with 26.7 million shares changing hands.

An article in The Straits Times had drawn attention to the counter's deep value.

Based on Hong Fok's latest annual report, its net asset value per share as at end-December 2020 was S$2.95, more than three times its current share price.

Hong Fok's Singapore assets include the 41-storey commercial tower The Concourse on Beach Road; the 13-storey International Building and 30-the storey Yotel Singapore, both on Orchard Road; and several apartments and commercial units at the newly developed Concourse Skyline.

Hong Fok has been actively buying back its shares over the past year. As at its last buyback filing, in December last year, Hong Fok now has 844.7 million issued shares (excluding treasury shares). This means roughly 28 per cent of the company is in public hands.

Singapore Exchange rules require companies to maintain a free float of 10 per cent.