Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to S$3.39, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 11x in the Machinery industry in Singapore. Total returns to shareholders of 450% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at S$6.12 per share. Price Target Changed • May 09
Price target increased by 7.5% to S$4.77 Up from S$4.43, the current price target is an average from 3 analysts. New target price is 45% above last closing price of S$3.29. Stock is up 202% over the past year. The company is forecast to post earnings per share of S$0.19 for next year compared to S$0.15 last year. Announcement • May 07
Hong Leong Asia Ltd. has completed a Follow-on Equity Offering in the amount of SGD 145 million. Hong Leong Asia Ltd. has completed a Follow-on Equity Offering in the amount of SGD 145 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 50,000,000
Price\Range: SGD 2.9
Discount Per Security: SGD 0.0522
Transaction Features: Regulation S; Subsequent Direct Listing Board Change • May 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Independent Non-Executive Director Chee Khern Ng was the last director to join the board, commencing their role in 2025. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 30
Hong Leong Asia Ltd. has filed a Follow-on Equity Offering in the amount of SGD 145 million. Hong Leong Asia Ltd. has filed a Follow-on Equity Offering in the amount of SGD 145 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 50,000,000
Price\Range: SGD 2.9
Discount Per Security: SGD 0.0522
Transaction Features: Regulation S; Subsequent Direct Listing Upcoming Dividend • Apr 28
Upcoming dividend of S$0.03 per share Eligible shareholders must have bought the stock before 05 May 2026. Payment date: 15 May 2026. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 1.6%. Lower than top quartile of Singaporean dividend payers (4.9%). Lower than average of industry peers (3.3%). Announcement • Apr 22
Hong Leong Asia Ltd. (SGX:H22) acquired Yong Tai Loong (Pte) Ltd. for SGD 90.7 million. Hong Leong Asia Ltd. (SGX:H22) acquired Yong Tai Loong (Pte) Ltd. from Yong Boon Chung, Yong Boon Chyuan, Yong Boon Fatt, Yong Boon Meng, and Yong Boon Tiing for SGD 90.7 million on April 21, 2026. A cash consideration of SGD 90.68 million will be paid by Hong Leong Asia Ltd. The Company has funded the Acquisition using a combination of external borrowings and internal funds. Yong Tai Loong is now a wholly-owned subsidiary of the Company.
Hong Leong Asia Ltd. (SGX:H22) completed the acquisition of Yong Tai Loong (Pte) Ltd. on April 21, 2026. Reported Earnings • Mar 30
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: S$0.15 (up from S$0.12 in FY 2024). Revenue: S$5.18b (up 22% from FY 2024). Net income: S$112.9m (up 29% from FY 2024). Profit margin: 2.2% (in line with FY 2024). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 6.9%. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 26
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: S$0.15 (up from S$0.12 in FY 2024). Revenue: S$5.18b (up 22% from FY 2024). Net income: S$112.9m (up 29% from FY 2024). Profit margin: 2.2% (in line with FY 2024). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 6.9%. Revenue is forecast to grow 9.0% p.a. on average during the next 2 years, compared to a 9.1% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 65% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 25
Hong Leong Asia Ltd., Annual General Meeting, Apr 24, 2026 Hong Leong Asia Ltd., Annual General Meeting, Apr 24, 2026. Price Target Changed • Jan 29
Price target increased by 20% to S$3.20 Up from S$2.68, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of S$3.24. Stock is up 231% over the past year. The company is forecast to post earnings per share of S$0.16 for next year compared to S$0.12 last year. Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to S$3.24, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Machinery industry in Singapore. Total returns to shareholders of 406% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at S$3.27 per share. Announcement • Jan 19
Hong Leong Asia Ltd. to Report Fiscal Year 2025 Results on Feb 25, 2026 Hong Leong Asia Ltd. announced that they will report fiscal year 2025 results at 5:00 PM, Singapore Standard Time on Feb 25, 2026 Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to S$2.21, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Machinery industry in Singapore. Total returns to shareholders of 305% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at S$4.04 per share. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to S$2.18, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 14x in the Machinery industry in Singapore. Total returns to shareholders of 222% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at S$3.99 per share. Declared Dividend • Aug 14
First half dividend of S$0.02 announced Shareholders will receive a dividend of S$0.02. Ex-date: 27th August 2025 Payment date: 9th September 2025 Dividend yield will be 2.8%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 50% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Aug 13
Now 22% undervalued Over the last 90 days, the stock has risen 50% to S$1.75. The fair value is estimated to be S$2.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.2% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 2.0% in 2 years. Earnings are forecast to grow by 35% in the next 2 years. Price Target Changed • Jul 10
Price target increased by 14% to S$1.83 Up from S$1.60, the current price target is an average from 3 analysts. New target price is 6.8% above last closing price of S$1.71. Stock is up 185% over the past year. The company is forecast to post earnings per share of S$0.14 for next year compared to S$0.12 last year. Announcement • Jul 07
Hong Leong Asia Ltd. to Report First Half, 2025 Results on Aug 12, 2025 Hong Leong Asia Ltd. announced that they will report first half, 2025 results on Aug 12, 2025 Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to S$1.53, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Machinery industry in Singapore. Total returns to shareholders of 128% over the past three years. Price Target Changed • May 26
Price target decreased by 7.3% to S$1.49 Down from S$1.60, the current price target is an average from 3 analysts. New target price is 27% above last closing price of S$1.17. Stock is up 92% over the past year. The company is forecast to post earnings per share of S$0.14 for next year compared to S$0.12 last year. Announcement • May 20
Hong Leong Asia Ltd. Approves the Final One-Tier Tax Exempt Dividend for the Year 2024 Hong Leong Asia Ltd. at its AGM held on April 25, 2025, approved the final one-tier tax exempt dividend of 3 cents per ordinary share in respect of financial year 2024 as recommended by the Directors be and is hereby declared for payment on 14 May 2025 to the shareholders registered on 5 May 2025. New Risk • Mar 02
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 6.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Recent Insider Transactions • Mar 01
CEO & Executive Director recently bought S$102k worth of stock On the 27th of February, Kiam Kong Ho bought around 110k shares on-market at roughly S$0.93 per share. This transaction increased Kiam Kong's direct individual holding by 1x at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Kiam Kong's only on-market trade for the last 12 months. Declared Dividend • Feb 28
Final dividend of S$0.03 announced Shareholders will receive a dividend of S$0.03. Ex-date: 2nd May 2025 Payment date: 14th May 2025 Dividend yield will be 4.4%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (18% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 47% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 27
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: S$0.12 (up from S$0.087 in FY 2023). Revenue: S$4.25b (up 4.1% from FY 2023). Net income: S$87.4m (up 35% from FY 2023). Profit margin: 2.1% (up from 1.6% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) exceeded analyst estimates by 4.8%. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Feb 26
Hong Leong Asia Ltd., Annual General Meeting, Apr 25, 2025 Hong Leong Asia Ltd., Annual General Meeting, Apr 25, 2025. Announcement • Jan 20
Hong Leong Asia Ltd. to Report Fiscal Year 2024 Results on Feb 26, 2025 Hong Leong Asia Ltd. announced that they will report fiscal year 2024 results After-Market on Feb 26, 2025 Announcement • Dec 17
Hong Leong Asia Ltd. Appoints Ng Chee Khern as Independent Non-Executive Director and A Member of the Board Sustainability Committee, Effective January 1, 2025 Hong Leong Asia Ltd. announced the appointment of Ng Chee Khern as Independent Non-Executive Director and a member of the Board Sustainability Committee. Working Experience April 2022 to Present - Permanent Secretary (Manpower), Ministry of Manpower May 2017 to March 2022 - Permanent Secretary (Smart Nation and Digital Government), Prime Minister's Office May 2014 to June 2017 - Permanent Secretary (Defence Development), Ministry of Defence. Other DirectorShips Past Smart Nation and Digital Government, Prime Minister's Office, Singapore - Permanent Secretary Government Technology Agency of Singapore (GovTech) - Chairman Changi Airport Group (Singapore) Pte. Ltd. - Director CapitaLand Integrated Commercial Trust Management Limited - Director. Other DirectorShips Present Ministry of Manpower, Singapore - Permanent Secretary, Mr. Ng Chee Khern was a director of the following companies: (i) Independent Non-Executive Director of CapitaLand Integrated Commercial Trust Management Limited from 8 June 2012 to 3 November 2020; and (ii) Non-Executive Director of Singapore Technologies Engineering Ltd. from 20 May 2014 to 19 June 2017. That notwithstanding, Mr. Ng has elected to attend the Listed Entity Director Programme on Environmental, Social and Governance Essentials, one of the core modules offered by the Singapore Institute of Directors, which delves into the role and responsibilities of the board and directors in sustainability governance. Appointment Date January 1, 2025. Following the appointment of Mr. Ng, the composition of the Board and Board Sustainability Committee will be as follows: Board: Mr. Kwek Leng Peck Executive Chairman, Mr. Stephen Ho Kiam Kong Executive Director and Chief Executive Officer, Ms Kwek Pei Xuan Executive Director and Head of Sustainability and Corporate Affairs, Mr. Tan Chian Khong Lead Independent Director, Ms. Kwong Ka Lo @ Caroline Kwong INED, Mr. Ng Sey Ming INED, Datuk Maimoonah Binte Mohamed Hussain INED, Mr. Ng Chee Khern INED, Board Sustainability Committee: Ms. Kwong Ka Lo @ Caroline Kwong (Chairman) INED, Mr. Stephen Ho Kiam Kong Executive Director and Chief Executive Officer, Ms. Kwek Pei Xuan Executive Director and Head of Sustainability and Corporate Affairs, Mr. Ng Chee Khern INED. Recent Insider Transactions • Aug 23
Head of Sustainability recently bought S$107k worth of stock On the 21st of August, Pei Xuan Kwek bought around 145k shares on-market at roughly S$0.74 per share. This transaction amounted to 73% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Upcoming Dividend • Aug 21
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 28 August 2024. Payment date: 10 September 2024. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Singaporean dividend payers (6.3%). In line with average of industry peers (2.9%). Reported Earnings • Aug 16
First half 2024 earnings released: EPS: S$0.066 (vs S$0.041 in 1H 2023) First half 2024 results: EPS: S$0.066 (up from S$0.041 in 1H 2023). Revenue: S$2.25b (up 8.5% from 1H 2023). Net income: S$49.4m (up 60% from 1H 2023). Profit margin: 2.2% (up from 1.5% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • May 25
Hong Leong Asia Ltd. Approves First and Final One-Tier Tax Exempt Dividend for the Fiscal Year 2023, Payable on 15 May 2024 Hong Leong Asia Ltd. at its AGM held on April 25, 2024, approved first and final one-tier tax exempt dividend of 2 cents per ordinary share in respect of fiscal year 2023 as recommended by the Directors be and is hereby declared for payment on 15 May 2024 to the shareholders registered on 6 May 2024. Announcement • Mar 27
Hong Leong Asia Ltd., Annual General Meeting, Apr 25, 2024 Hong Leong Asia Ltd., Annual General Meeting, Apr 25, 2024, at 15:00 Singapore Standard Time. Location: M Hotel Singapore, Banquet Suite, Level 10, 81 Anson Road Singapore Singapore Agenda: To receive the Directors' Statement and Audited Financial Statements for the year ended 31 December ("FY") 2023 and the Auditors' Report thereon; to declare a first and final one-tier tax exempt dividend of 2 cents per ordinary share for FY 2023; to approve Directors' Fees of $627,666 for FY 2023 (FY 2022: $498,000); to re-elect the following Directors of the Company ("Directors") who would be retiring in accordance with the Company's Constitution and who, being eligible, offer themselves for re-election as Directors; and to consider other matters. Declared Dividend • Mar 01
Dividend of S$0.02 announced Shareholders will receive a dividend of S$0.02. Ex-date: 3rd May 2024 Payment date: 15th May 2024 Dividend yield will be 3.3%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (6% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 25% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 29
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: S$0.087 (up from S$0.073 in FY 2022). Revenue: S$4.08b (up 5.2% from FY 2022). Net income: S$65.0m (up 19% from FY 2022). Profit margin: 1.6% (up from 1.4% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 3.7%. Revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 4% per year. New Risk • Feb 27
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Paying a dividend despite having no free cash flows. Announcement • Jan 25
Hong Leong Asia Ltd. to Report Fiscal Year 2023 Results on Feb 28, 2024 Hong Leong Asia Ltd. announced that they will report fiscal year 2023 results After-Market on Feb 28, 2024 Major Estimate Revision • Sep 01
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from S$4.48b to S$4.14b. EPS estimate also fell from S$0.11 per share to S$0.09 per share. Net income forecast to grow 71% next year vs 10% growth forecast for Machinery industry in Singapore. Consensus price target down from S$1.10 to S$1.00. Share price was steady at S$0.62 over the past week. Reported Earnings • Aug 12
First half 2023 earnings released: EPS: S$0.041 (vs S$0.057 in 1H 2022) First half 2023 results: EPS: S$0.041 (down from S$0.057 in 1H 2022). Revenue: S$2.08b (down 1.0% from 1H 2022). Net income: S$30.9m (down 28% from 1H 2022). Profit margin: 1.5% (down from 2.0% in 1H 2022). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jul 12
Hong Leong Asia Ltd. to Report First Half, 2023 Results on Aug 11, 2023 Hong Leong Asia Ltd. announced that they will report first half, 2023 results on Aug 11, 2023 Upcoming Dividend • Apr 26
Upcoming dividend of S$0.02 per share at 2.9% yield Eligible shareholders must have bought the stock before 03 May 2023. Payment date: 16 May 2023. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Singaporean dividend payers (6.4%). Lower than average of industry peers (3.8%). Reported Earnings • Mar 30
Full year 2022 earnings released: EPS: S$0.073 (vs S$0.08 in FY 2021) Full year 2022 results: EPS: S$0.073 (down from S$0.08 in FY 2021). Revenue: S$3.88b (down 21% from FY 2021). Net income: S$54.8m (down 8.2% from FY 2021). Profit margin: 1.4% (up from 1.2% in FY 2021). The increase in margin was driven by lower expenses. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 13
Price target increased by 9.0% to S$1.10 Up from S$1.01, the current price target is provided by 1 analyst. New target price is 67% above last closing price of S$0.66. Stock is down 17% over the past year. The company is forecast to post earnings per share of S$0.11 for next year compared to S$0.073 last year. Reported Earnings • Feb 25
Full year 2022 earnings released: EPS: S$7.32 (vs S$0.08 in FY 2021) Full year 2022 results: EPS: S$7.32. Revenue: S$3.88b (down 21% from FY 2021). Net income: S$54.8m (down 8.2% from FY 2021). Profit margin: 1.4% (up from 1.2% in FY 2021). The increase in margin was driven by lower expenses. Revenue is forecast to grow 8.5% p.a. on average during the next 2 years, compared to a 9.5% growth forecast for the Machinery industry in Singapore. Announcement • Jan 20
Hong Leong Asia Ltd. to Report Fiscal Year 2022 Results on Feb 24, 2023 Hong Leong Asia Ltd. announced that they will report fiscal year 2022 results at 5:00 PM, Singapore Standard Time on Feb 24, 2023 Reported Earnings • Aug 17
First half 2022 earnings released: EPS: S$0.057 (vs S$0.054 in 1H 2021) First half 2022 results: EPS: S$0.057 (up from S$0.054 in 1H 2021). Revenue: S$2.10b (down 26% from 1H 2021). Net income: S$42.7m (up 5.6% from 1H 2021). Profit margin: 2.0% (up from 1.4% in 1H 2021). The increase in margin was driven by lower expenses. Over the next year, revenue is forecast to grow 16%, compared to a 3.4% growth forecast for the Machinery industry in Singapore. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Jul 15
Hong Leong Asia Ltd. to Report First Half, 2022 Results on Aug 11, 2022 Hong Leong Asia Ltd. announced that they will report first half, 2022 results on Aug 11, 2022 Announcement • May 27
Hong Leong Asia Ltd. Announces First and Final One-Tier Tax Exempt Dividend for the Fiscal Year 2021, Payable on 17 May 2022 Hong Leong Asia Ltd. announced that at its AGM held on 27 April 2022, the company has approved first and final one-tier tax exempt dividend of 2 cents per ordinary share in respect of fiscal year 2021 as recommended by the Directors be and is hereby declared for payment on 17 May 2022 to the shareholders registered on 5 May 2022. Upcoming Dividend • Apr 27
Upcoming dividend of S$0.02 per share Eligible shareholders must have bought the stock before 04 May 2022. Payment date: 17 May 2022. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Singaporean dividend payers (5.8%). Lower than average of industry peers (7.0%). Announcement • Mar 31
Hong Leong Asia Ltd., Annual General Meeting, Apr 27, 2022 Hong Leong Asia Ltd., Annual General Meeting, Apr 27, 2022, at 15:00 Singapore Standard Time. Agenda: To consider, receive the Directors' Statement and Audited Financial Statements for the year ended 31 December 2021 and the Auditors' Report thereon; to declare a first and in alone-tier tax exempt dividend of 2 cents per ordinary share for FY2021; to approve Directors' Fees (excluding Fees to the Audit and Risk Committee of $380,290 for FY 2021 (FY 2020: $415,776); and to consider other matters. Reported Earnings • Mar 30
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: S$0.08 (up from S$0.061 in FY 2020). Revenue: S$4.93b (up 9.7% from FY 2020). Net income: S$59.7m (up 32% from FY 2020). Profit margin: 1.2% (up from 1.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is expected to shrink by 3.6% compared to a 16% growth forecast for the industry in Singapore. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Mar 29
Hong Leong Asia Ltd. Proposes First and Final One-Tier Tax Exempt Dividend for the Year 2021 The Board of Directors of Hong Leong Asia Ltd. proposed a first and final one-tier tax exempt dividend of 2 cents per ordinary share for year 2021. Record Date is 5.00 p.m. on 5 May 2022 for determining entitlements to first and final dividend (the "Dividend"), subject to shareholders' approval for the declaration of the Dividend at the AGM. Payment date is 17 May 2022 for dividend, subject to shareholders approval at the forthcoming 61st Annual General Meeting of the company to be held on 27 April 2022. Price Target Changed • Mar 16
Price target decreased to S$1.01 Down from S$1.15, the current price target is an average from 2 analysts. New target price is 29% above last closing price of S$0.79. Stock is up 9.8% over the past year. The company is forecast to post earnings per share of S$0.087 for next year compared to S$0.08 last year. Recent Insider Transactions • Mar 10
Executive Chairman recently bought S$790k worth of stock On the 8th of March, Leng Peck Kwek bought around 1m shares on-market at roughly S$0.79 per share. This was the largest purchase by an insider in the last 3 months. This was Leng Peck's only on-market trade for the last 12 months. Major Estimate Revision • Mar 05
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from S$0.11 to S$0.08 per share. Revenue forecast steady at S$4.92b. Net income forecast to grow 6.3% next year vs 31% growth forecast for Machinery industry in Singapore. Consensus price target broadly unchanged at S$1.15. Share price was steady at S$0.78 over the past week. Announcement • Feb 27
Hong Leong Asia Ltd. Proposes First and Final Dividend for the Year Ended December 31, 2021, Payable on 17 May 2022 The Board of Directors of Hong Leong Asia Ltd. proposed a first and final dividend of SGD 0.02 per share, subject to shareholders approval at the forthcoming 61st Annual General Meeting of the company, the proposed first and final dividend for financial year ended 31 December 2021 will be payable on 17 May 2022. Record date is on 5 May 2022. Reported Earnings • Feb 27
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: S$0.08 (up from S$0.061 in FY 2020). Revenue: S$4.93b (up 9.7% from FY 2020). Net income: S$59.7m (up 32% from FY 2020). Profit margin: 1.2% (up from 1.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to stay flat compared to a 43% growth forecast for the industry in Singapore. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Jan 30
Hong Leong Asia Ltd. to Report Fiscal Year 2021 Results on Feb 25, 2022 Hong Leong Asia Ltd. announced that they will report fiscal year 2021 results on Feb 25, 2022 Major Estimate Revision • Aug 20
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from S$0.087 to S$0.097. Revenue forecast steady at S$4.78b. Net income forecast to grow 51% next year vs 37% growth forecast for Machinery industry in Singapore. Consensus price target down from S$1.23 to S$1.15. Share price fell 6.1% to S$0.84 over the past week. Executive Departure • May 04
Non-Executive & Lead Independent Director has left the company On the 28th of April, Ernest Colin Lee's tenure as Non-Executive & Lead Independent Director ended after 21.1 years in the role. As of December 2020, Ernest Colin personally held only 80.00k shares (S$61k worth at the time). A total of 2 executives have left over the last 12 months. Upcoming Dividend • Apr 28
Upcoming dividend of S$0.01 per share Eligible shareholders must have bought the stock before 05 May 2021. Payment date: 18 May 2021. Trailing yield: 1.0%. Lower than top quartile of Singaporean dividend payers (4.6%). Lower than average of industry peers (2.6%). Announcement • Feb 18
Hong Leong Asia Ltd. to Report Fiscal Year 2020 Results on Feb 25, 2021 Hong Leong Asia Ltd. announced that they will report fiscal year 2020 results on Feb 25, 2021 Is New 90 Day High Low • Jan 21
New 90-day high: S$0.82 The company is up 73% from its price of S$0.47 on 23 October 2020. The Singaporean market is up 18% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 22% over the same period. Announcement • Jan 13
Hong Leong Asia Ltd. Appoints Kwek Pei Xuan as Head of Sustainability and Corporate Affairs Hong Leong Asia Ltd. announced appointment of Kwek Pei Xuan as Head of Sustainability and Corporate Affairs. The appointment is an executive position. Ms. Kwek Pei Xuan shall have overall responsibility for the management of the sustainability practices and reporting and corporate affairs (which involves overseeing corporate communications and business relation with stakeholders) of the Company and its subsidiaries. The date of appointment was January 1, 2021. From January 2, 2020 to December 31, 2020, she was Senior Business Development Manager of the company. Is New 90 Day High Low • Dec 29
New 90-day high: S$0.73 The company is up 60% from its price of S$0.46 on 30 September 2020. The Singaporean market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 6.0% over the same period. Recent Insider Transactions • Nov 19
CEO & Executive Director recently bought S$54k worth of stock On the 17th of November, Kiam Ho bought around 104k shares on-market at roughly S$0.52 per share. This was the largest purchase by an insider in the last 3 months. This was Kiam's only on-market trade for the last 12 months. Is New 90 Day High Low • Nov 17
New 90-day high: S$0.53 The company is up 10.0% from its price of S$0.48 on 19 August 2020. The Singaporean market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is down 10.0% over the same period. Is New 90 Day High Low • Sep 22
New 90-day low: S$0.46 The company is down 9.0% from its price of S$0.51 on 24 June 2020. The Singaporean market is down 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Machinery industry, which is down 34% over the same period. Announcement • Aug 04
HL Cement (Malaysia) Sdn. Bhd. and Hong Leong Asia Ltd. (SGX:H22) completed the acquisition of remaining 11.8% stake in Tasek Corporation Berhad (KLSE:TASEK). HL Cement (Malaysia) Sdn. Bhd. and Hong Leong Asia Ltd. (SGX:H22) made an offer to acquire the remaining 11.8% stake in Tasek Corporation Berhad (KLSE:TASEK) for MYR 83 million on May 12, 2020. Under the terms of the transaction, HL Cement (Malaysia) Sdn. Bhd. and Hong Leong Asia will acquire 14.3 million shares representing 11.8% stake in ordinary shares and HL Cement (Malaysia) will acquire 0.12 million shares representing 35.09% remaining preference shares in Tasek Corporation at a price of MYR 5.8 per ordinary share and MYR 5.8 per preference share. The consideration for the Offer shall be satisfied entirely in cash by HL Cement (Malaysia). The offer is not conditional upon receipt of minimum level of valid acceptances of the offer. The offer will be made in conjunction with the posting of offer document which will not be later than 21 days from the date of notice. The offer will remain open for acceptance until 21st day after the posting date. As of June 1, 2020, Hong Leong acquired 3000 shares of Tasek Corporation. Hong Leong acquired additional 20,800 shares of Tasek as of June 11, 2020. As of June 12, 2020, Board of Directors of Tasek Corporation approved the transaction and recommended the shareholders to accept the offer. The transaction is expected to be close on June 23, 2020. As of June 19, 2020, the transaction is expected to close on July 17, 2020. As of July 14, 2020, the transaction is expected to close on August 3, 2020. The expiry date for Dissenting Shareholders to exercise their right under Subsection 223(1) of the CMSA has been extended to November 4, 2020.
Perry Lye and Debbie Leong of CIMB Investment Bank Berhad acted as financial advisor for Hong Leong Asia Ltd. and HL Cement (Malaysia) Sdn. Bhd. Mercury Securities Sdn Bhd acted as the financial advisor to Tasek Corporation. Tricor Investor & Issuing House Services Sdn Bhd acted as registrar for Tasek. As of June 12, 2020, Mercury Securities said offer as fair and reasonable.
HL Cement (Malaysia) Sdn. Bhd. and Hong Leong Asia Ltd. (SGX:H22) completed the acquisition of remaining 11.8% stake in Tasek Corporation Berhad (KLSE:TASEK) on August 3, 2020. Announcement • Jul 31
Hong Leong Asia Ltd. to Report First Half, 2020 Results on Aug 13, 2020 Hong Leong Asia Ltd. announced that they will report first half, 2020 results on Aug 13, 2020 Announcement • Jul 23
Hong Leong Asia Ltd. Announces Executive Changes The Board of Directors of Hong Leong Asia Ltd. announced that pursuant to the Nominating Committee's recommendation, the Board has approved the appointment of Mr. Stephen Ho Kiam Kong as CEO of the company. Mr. Ho's appointment as Director will take effect from August 3,2020. Pending Mr. Tan Eng Kwee's departure from the company on August 16, 2020 pursuant to his resignation as announced on July 16, 2020, Mr. Ho will join the Company as CEO-Designate of the Company on August 3, 2020 to allow for a smooth transition in the role of the CEO, which responsibilities he will assume in full with effect from August 17, 2020. Mr. Ho was the Chief Financial Officer of Wilmar International Limited until May 31, 2020. Prior to his joining Wilmar International Limited in 2011, he was the Senior Vice President and CFO, Greater China, of Philips Electronics China Group from July 2003 to October 2011, and Vice President, Global Head of Finance and Treasury of LG. Philips Displays International Ltd. in Hong Kong from June 2001 to June 2003. His earlier career years were spent in the banking sector.