Here's Why We Think Hong Leong Bank Berhad (KLSE:HLBANK) Is Well Worth Watching
Jan 23
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Malaysian (KLSE) Banks Industry Analysis
UpdatedJan 24, 2025
DataAggregated Company Financials
Companies11
- 7D0.7%
- 3M-1.7%
- 1Y13.4%
- YTD-0.9%
Over the last 7 days, the Banks industry has remained flat. As for the the longer term, the industry is up 13% over the past 12 months. Earnings are forecast to grow by 5.5% annually.
Industry Valuation and Performance
Has the Malaysian Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 24 Jan 2025 | RM 429.4b | RM 94.8b | RM 39.2b | 10.6x | 10.9x | 4.5x |
| Sun, 22 Dec 2024 | RM 424.3b | RM 94.8b | RM 39.2b | 10.3x | 10.8x | 4.5x |
| Tue, 19 Nov 2024 | RM 435.9b | RM 92.4b | RM 38.2b | 11.1x | 11.4x | 4.7x |
| Thu, 17 Oct 2024 | RM 437.8b | RM 92.4b | RM 38.2b | 10.8x | 11.5x | 4.7x |
| Sat, 14 Sep 2024 | RM 443.1b | RM 92.4b | RM 38.2b | 10.5x | 11.6x | 4.8x |
| Mon, 12 Aug 2024 | RM 407.1b | RM 90.6b | RM 37.1b | 10.4x | 11x | 4.5x |
| Wed, 10 Jul 2024 | RM 398.4b | RM 90.6b | RM 37.1b | 10x | 10.7x | 4.4x |
| Fri, 07 Jun 2024 | RM 396.5b | RM 90.6b | RM 37.2b | 9.9x | 10.7x | 4.4x |
| Sun, 05 May 2024 | RM 389.5b | RM 88.5b | RM 36.5b | 10.2x | 10.7x | 4.4x |
| Tue, 02 Apr 2024 | RM 391.7b | RM 88.5b | RM 36.5b | 10.2x | 10.7x | 4.4x |
| Thu, 29 Feb 2024 | RM 390.3b | RM 89.5b | RM 36.1b | 10.4x | 10.8x | 4.4x |
| Sat, 27 Jan 2024 | RM 379.0b | RM 89.9b | RM 36.2b | 10x | 10.5x | 4.2x |
| Mon, 25 Dec 2023 | RM 366.5b | RM 89.9b | RM 36.2b | 9.6x | 10.1x | 4.1x |
| Wed, 22 Nov 2023 | RM 371.1b | RM 89.7b | RM 35.3b | 10x | 10.5x | 4.1x |
| Fri, 20 Oct 2023 | RM 365.0b | RM 89.5b | RM 35.0b | 9.7x | 10.4x | 4.1x |
| Sun, 17 Sep 2023 | RM 368.3b | RM 89.5b | RM 35.0b | 10x | 10.5x | 4.1x |
| Tue, 15 Aug 2023 | RM 368.3b | RM 88.1b | RM 33.7b | 10.6x | 10.9x | 4.2x |
| Thu, 13 Jul 2023 | RM 349.4b | RM 88.1b | RM 33.7b | 9.8x | 10.4x | 4x |
| Sat, 10 Jun 2023 | RM 340.9b | RM 88.1b | RM 33.7b | 9.3x | 10.1x | 3.9x |
| Mon, 08 May 2023 | RM 354.3b | RM 87.4b | RM 32.5b | 9.9x | 10.9x | 4.1x |
| Wed, 05 Apr 2023 | RM 356.0b | RM 87.5b | RM 32.6b | 9.9x | 10.9x | 4.1x |
| Fri, 03 Mar 2023 | RM 364.6b | RM 69.6b | RM 32.6b | 10.2x | 11.2x | 5.2x |
| Sun, 29 Jan 2023 | RM 371.1b | RM 84.4b | RM 30.9b | 12.3x | 12x | 4.4x |
| Tue, 27 Dec 2022 | RM 375.3b | RM 84.4b | RM 30.9b | 12.3x | 12.1x | 4.4x |
| Thu, 24 Nov 2022 | RM 365.0b | RM 80.7b | RM 28.3b | 12.8x | 12.9x | 4.5x |
| Sat, 22 Oct 2022 | RM 372.4b | RM 80.7b | RM 28.3b | 13.3x | 13.2x | 4.6x |
| Mon, 19 Sep 2022 | RM 370.5b | RM 80.7b | RM 28.3b | 12.9x | 13.1x | 4.6x |
| Wed, 17 Aug 2022 | RM 377.9b | RM 79.1b | RM 28.1b | 9.8x | 13.4x | 4.8x |
| Fri, 15 Jul 2022 | RM 360.1b | RM 79.1b | RM 28.1b | 9.3x | 12.8x | 4.6x |
| Sun, 12 Jun 2022 | RM 367.1b | RM 79.1b | RM 28.1b | 9.8x | 13.1x | 4.6x |
| Tue, 10 May 2022 | RM 371.1b | RM 79.1b | RM 24.5b | 11.2x | 15.1x | 4.7x |
| Thu, 07 Apr 2022 | RM 372.8b | RM 79.1b | RM 24.5b | 11.5x | 15.2x | 4.7x |
| Sat, 05 Mar 2022 | RM 364.1b | RM 79.0b | RM 24.5b | 11.2x | 14.9x | 4.6x |
| Mon, 31 Jan 2022 | RM 349.0b | RM 76.2b | RM 22.5b | 11.5x | 15.5x | 4.6x |
Price to Earnings Ratio
15.5x
Current Industry PE
- Investors are relatively neutral on the Malaysian Banks industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 11.8x.
- The industry is trading close to its 3-year average PS ratio of 4.4x.
Past Earnings Growth
- The earnings for companies in the Banks industry have grown 20% per year over the last three years.
- Revenues for these companies have grown 7.5% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Financials industry?
| MY Market | 1.22% | |
| Financials | 0.67% | |
| Banks | 0.72% | |
| Diversified Banks | 0.72% | |
| Regional Banks | 0.70% | |
Industry PE
- Investors are most optimistic about the Diversified Banks industry, which is trading close to its 3-year average PE ratio of 11.8x.
- Analysts are expecting annual earnings growth of 5.5%, which is lower than the prior year's growth of 9.6% per year.
- Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 13.1x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Banks industry, expecting annual earnings growth of 5.5% over the next 5 years.
- However this is lower than its past earnings growth rate of 9.6% per year.
- In contrast, the Regional Banks industry is expected to see its earnings grow by 2.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MAYBANK Malayan Banking Berhad | RM 10.40 | 2.6% +RM 3.1b | 13.8% | PB1.4x | |
| AMBANK AMMB Holdings Berhad | RM 5.64 | 2.4% +RM 429.9m | 31.8% | PB0.9x | |
| CIMB CIMB Group Holdings Berhad | RM 8.01 | 0.4% +RM 322.0m | 29.6% | PB1.3x | |
| ABMB Alliance Bank Malaysia Berhad | RM 5.31 | 2.9% +RM 232.2m | 54.8% | PB1.1x | |
| HLBANK Hong Leong Bank Berhad | RM 20.18 | 0.4% +RM 164.0m | 5.2% | PB1.1x |