Leng Peck is the uncle of Sherman Kwek and the younger cousin of executive chairman Kwek Leng Beng. He served on CDL’s board for 33 years from 1987 to 2020, and stepped down after a disagreement over the investment in Sincere Property Group. His resignation came as a surprise to the local corporate scene, especially given how business families typically settle differences behind closed doors.
Following the announcement on May 18, CDL’s share price rose 4.84% to close at $8.22 on May 19, extending its gains of around 70% over the past year amid a broader, buoyant market.
In a statement, Leng Beng welcomes Leng Peck back to the board. Given his cousin’s experience, perspectives and network, Leng Beng believes Leng Peck would help enrich the board’s collective expertise and support effective stewardship as the company advances its strategic priorities. The latter’s long association with the group and deep understanding of its operations would also complement the board’s capabilities.
“The insights Leng Peck brings to the board will be invaluable to our ongoing strategic review as the company continues to refine its strategy, priorities and initiatives,” wrote Leng Beng. He adds that, with this appointment, the outcome of the strategic review will be revealed in 3Q2026.
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Analysts are also paying close attention to the appointment. In a May 18 note, DBS Group Research analyst Tabitha Foo says the return of Leng Peck comes at a pivotal juncture, as CDL undertakes a strategic review amid growing investor focus on capital allocation, portfolio optimisation and shareholder returns.
“Given his more than four decades of experience across the Hong Leong Group, we believe his appointment could provide additional strategic depth and operational oversight as CDL evaluates its longer-term growth trajectory and value-unlocking initiatives,” adds Foo.
Leng Peck currently serves as chairman of Hong Leong Asia (HLA), where the company has seen a substantial re-rating in recent years, supported by strong growth in its diesel engine business and a robust outlook for Singapore’s construction sector. “Under his leadership, HLA’s market value has increased significantly, driven by stronger earnings momentum, disciplined capital allocation and strategic expansion initiatives,” says Foo, who has kept her “buy” call on CDL with an unchanged target price of $12.
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Meanwhile, in a May 19 report, OCBC’s credit research team notes that Leng Peck returns to CDL with expanded authority this time round. “While he previously served only as a non-independent non-executive director, his new vice chairman position in our view signals greater board influence and authority than when he exited in 2020,” the team says. Some market observers also believe Leng Peck could eventually be elevated to non-executive chairman should Leng Beng retire.
The OCBC Credit Research team believes the latest move could reduce the governance overhang stemming from last year’s family disputes. It also sees the development as strengthening alignment with the chairman, which may in turn imply reduced board independence and greater family influence.
The latest development at CDL has captured market attention, but its impact on rejuvenating the company and driving further growth will likely depend on the outcome of the upcoming strategic review.
