With effect from June 1, Leng Peck will be CDL's vice chairman and non-executive director.
All this while, he has been chairman of another Kwek family-linked company, Hong Leong Asia, which has been enjoying strong gains in recent years from its multiple-sector exposure in engines and building materials.
"His return comes at a pivotal juncture as CDL undertakes a strategic business review amid increasing investor focus on capital allocation, portfolio optimisation and shareholder returns," says Foo, who has kept her "buy" call and $12 target price on CDL.
"Given his more than four decades of experience across the Hong Leong Group, we believe Mr Kwek’s appointment could provide additional strategic depth and operational oversight as CDL evaluates its longer-term growth trajectory and value-unlocking initiatives," she adds.
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Foo notes that HLA, under Leng Peck, has seen its "significant" increase in market value, driven by stronger earnings momentum, disciplined capital allocation and strategic expansion initiatives.
CDL shares closed at $7.84 on May 18, down 0.25% for the day, and down 2.24% year to date.
