Executive Summary
Hong Leong Financial Group Berhad, an investment holding company, provides various conventional and Islamic financial products and services to consumer, corporate, and institutional customers.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Share Price & News
How has Hong Leong Financial Group Berhad's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HLFG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
11.2%
HLFG
10.7%
MY Banks
4.0%
MY Market
1 Year Return
-21.5%
HLFG
-19.1%
MY Banks
-7.0%
MY Market
Return vs Industry: HLFG underperformed the MY Banks industry which returned -19.1% over the past year.
Return vs Market: HLFG underperformed the MY Market which returned -7% over the past year.
Shareholder returns
| HLFG | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.2% | 10.7% | 4.0% |
| 30 Day | 16.4% | 12.6% | 11.7% |
| 90 Day | -5.7% | -4.7% | 2.9% |
| 1 Year | -19.6%-21.5% | -14.9%-19.1% | -3.5%-7.0% |
| 3 Year | -10.3%-14.9% | -7.6%-18.9% | -7.2%-18.5% |
| 5 Year | 9.6%-2.7% | 7.1%-14.6% | 2.4%-15.3% |
Price Volatility Vs. Market
How volatile is Hong Leong Financial Group Berhad's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Things Look Grim For Hong Leong Financial Group Berhad (KLSE:HLFG) After Today's Downgrade2 weeks ago | Simply Wall St
Here's How We Evaluate Hong Leong Financial Group Berhad's (KLSE:HLFG) DividendValuation
Is Hong Leong Financial Group Berhad undervalued compared to its fair value and its price relative to the market?
9.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HLFG (MYR14.9) is trading above our estimate of fair value (MYR8.95)
Significantly Below Fair Value: HLFG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HLFG is poor value based on its PE Ratio (9.4x) compared to the Banks industry average (9x).
PE vs Market: HLFG is good value based on its PE Ratio (9.4x) compared to the MY market (13.7x).
Price to Earnings Growth Ratio
PEG Ratio: HLFG is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: HLFG is overvalued based on its PB Ratio (0.8x) compared to the MY Banks industry average (0.8x).
Next Steps
Future Growth
How is Hong Leong Financial Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
7.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HLFG's forecast earnings growth (7.4% per year) is above the savings rate (3.9%).
Earnings vs Market: HLFG's earnings (7.4% per year) are forecast to grow slower than the MY market (15.8% per year).
High Growth Earnings: HLFG's earnings are forecast to grow, but not significantly.
Revenue vs Market: HLFG's revenue (2% per year) is forecast to grow slower than the MY market (5.6% per year).
High Growth Revenue: HLFG's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HLFG's Return on Equity is forecast to be low in 3 years time (8.9%).
Next Steps
Past Performance
How has Hong Leong Financial Group Berhad performed over the past 5 years?
6.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HLFG has high quality earnings.
Growing Profit Margin: HLFG's current net profit margins (36.1%) are lower than last year (36.1%).
Past Earnings Growth Analysis
Earnings Trend: HLFG's earnings have grown by 6.1% per year over the past 5 years.
Accelerating Growth: HLFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HLFG had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).
Return on Equity
High ROE: HLFG's Return on Equity (9.1%) is considered low.
Next Steps
Financial Health
How is Hong Leong Financial Group Berhad's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: HLFG's Assets to Equity ratio (8.2x) is low.
Allowance for Bad Loans: HLFG has a low allowance for bad loans (90%).
Low Risk Liabilities: 80% of HLFG's liabilities are made up of primarily low risk sources of funding.
Loan Level: HLFG has an appropriate level of Loans to Assets ratio (55%).
Low Risk Deposits: HLFG's Loans to Deposits ratio (77%) is appropriate.
Level of Bad Loans: HLFG has an appropriate level of bad loans (1%).
Next Steps
Dividend
What is Hong Leong Financial Group Berhad's current dividend yield, its reliability and sustainability?
2.82%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HLFG's dividend (2.82%) is higher than the bottom 25% of dividend payers in the MY market (2.01%).
High Dividend: HLFG's dividend (2.82%) is low compared to the top 25% of dividend payers in the MY market (5.48%).
Stability and Growth of Payments
Stable Dividend: HLFG's dividend payments have been volatile in the past 10 years.
Growing Dividend: HLFG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (8.2%), HLFG's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HLFG's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Kong Khoon Tan (62yo)
4.33yrs
Tenure
RM12,047,000
Compensation
Mr. Kong Khoon Tan has been Chairman of the Board of Hong Leong Bank (Cambodia) Plc since February 8, 2016 and has been Non-Independent and Non-Executive Director since November 20, 2013. Mr. Tan has been ...
CEO Compensation Analysis
Compensation vs Market: Kong Khoon's total compensation ($USD159.43K) is below average for companies of similar size in the MY market ($USD579.56K).
Compensation vs Earnings: Kong Khoon's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.33yrs | RM12.05m | no data | |
| Group Chief Financial Officer | 13.58yrs | no data | no data | |
| Group MD & CEO of Hong Leong Bank Berhad | 4.33yrs | no data | no data | |
| Group MD & CEO of Hong Leong Investment Bank Berhad | no data | no data | no data | |
| Group MD & CEO of Hong Leong Assurance Berhad | no data | no data | no data | |
| Company Secretary | 1.25yrs | no data | no data |
4.3yrs
Average Tenure
55yo
Average Age
Experienced Management: HLFG's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.33yrs | RM12.05m | no data | |
| Chairman | 11.17yrs | RM35.00k | 1.06% MYR179.5m | |
| Independent Non Executive Director | 0.17yr | no data | no data | |
| Non-Executive Independent Director | 8.83yrs | RM174.00k | no data | |
| Non-Executive Independent Director | 8.83yrs | RM167.00k | no data | |
| Independent Non-Executive Director | 1.25yrs | no data | no data | |
| Independent & Non Executive Director | 0.58yr | no data | no data | |
| Independent Non Executive Director | 1.08yrs | RM16.00k | no data |
2.8yrs
Average Tenure
61yo
Average Age
Experienced Board: HLFG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hong Leong Financial Group Berhad's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hong Leong Financial Group Berhad
- Ticker: HLFG
- Exchange: KLSE
- Founded: 1968
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: RM16.894b
- Shares outstanding: 1.13b
- Website: https://www.hlfg.com.my
Location
- Hong Leong Financial Group Berhad
- Menara Hong Leong
- Level 30
- Kuala Lumpur
- 50490
- Malaysia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HLFG | KLSE (Bursa Malaysia) | Yes | Ordinary Shares | MY | MYR | Jan 1992 |
| HLFB.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
Biography
Hong Leong Financial Group Berhad, an investment holding company, provides various conventional and Islamic financial products and services to consumer, corporate, and institutional customers. The company operates through Commercial Banking, Investment Banking and Asset Management, Insurance, and Other Operations segments. It offers personal financial, business banking, treasury, transaction banking, and wealth management services; investment banking, futures and stock broking, and fund and unit trust management services, as well as private banking services; and trading products and services across treasury, equities, derivatives, and foreign exchange. The company also provides life and general insurance, and takaful services; agent, nominee, and custodian services; and property investment and management services. It operates through a network of approximately 250 branches and 1,100 self-service terminals in Malaysia; and has operations in Singapore, Hong Kong, China, Vietnam, and Cambodia. The company was formerly known as Hong Leong Credit Berhad and changed its name to Hong Leong Financial Group Berhad in July 2006. The company was incorporated in 1968 and is headquartered in Kuala Lumpur, Malaysia. Hong Leong Financial Group Berhad is a subsidiary of Hong Leong Company (Malaysia) Berhad.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 16:19 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.