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HLFG

Hong Leong Financial Group BerhadKLSE:HLFG Stock Report

Market Cap

RM21.0b

7D

0.3%

1Y

27.7%

Updated

20 Oct, 2021

Data

Company Financials +
HLFG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

HLFG Overview

Hong Leong Financial Group Berhad, an investment holding company, provides a range of financial services to consumer, corporate, and institutional customers.

Price History & Performance

Summary of all time highs, changes and price drops for Hong Leong Financial Group Berhad
Historical stock prices
Current Share PriceRM18.54
52 Week HighRM13.96
52 Week LowRM18.78
Beta0.52
1 Month Change0.98%
3 Month Change3.92%
1 Year Change27.69%
3 Year Change0.76%
5 Year Change19.00%
Change since IPO1,527.92%

Recent News & Updates

Oct 01
Hong Leong Financial Group Berhad (KLSE:HLFG) Has Announced That It Will Be Increasing Its Dividend To RM0.29

Hong Leong Financial Group Berhad (KLSE:HLFG) Has Announced That It Will Be Increasing Its Dividend To RM0.29

Hong Leong Financial Group Berhad ( KLSE:HLFG ) has announced that it will be increasing its dividend on the 23rd of...

Sep 22
With EPS Growth And More, Hong Leong Financial Group Berhad (KLSE:HLFG) Is Interesting

With EPS Growth And More, Hong Leong Financial Group Berhad (KLSE:HLFG) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 31
If You Like EPS Growth Then Check Out Hong Leong Financial Group Berhad (KLSE:HLFG) Before It's Too Late

If You Like EPS Growth Then Check Out Hong Leong Financial Group Berhad (KLSE:HLFG) Before It's Too Late

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

HLFGMY BanksMY Market
7D0.3%2.1%1.3%
1Y27.7%29.5%8.7%

Return vs Industry: HLFG underperformed the MY Banks industry which returned 29.5% over the past year.

Return vs Market: HLFG exceeded the MY Market which returned 8.7% over the past year.

Price Volatility

Is HLFG's price volatile compared to industry and market?
HLFG volatility
HLFG Beta0.52
Industry Beta0.55
Market Beta1

Stable Share Price: HLFG is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: HLFG's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19687,647Kong Khoon Tanhttps://www.hlfg.com.my

Hong Leong Financial Group Berhad, an investment holding company, provides a range of financial 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, such as treasury, equities, derivatives, and foreign exchange.

Hong Leong Financial Group Berhad Fundamentals Summary

How do Hong Leong Financial Group Berhad's earnings and revenue compare to its market cap?
HLFG fundamental statistics
Market CapRM21.02b
Earnings (TTM)RM2.27b
Revenue (TTM)RM5.55b

9.3x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLFG income statement (TTM)
RevenueRM5.55b
Cost of RevenueRM0
Gross ProfitRM5.55b
ExpensesRM3.28b
EarningsRM2.27b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.00
Gross Margin100.00%
Net Profit Margin40.82%
Debt/Equity Ratio18.9%

How did HLFG perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

20%

Payout Ratio

Does HLFG pay a reliable dividends?

See HLFG dividend history and benchmarks
When do you need to buy HLFG by to receive an upcoming dividend?
Hong Leong Financial Group Berhad dividend dates
Ex Dividend DateNov 05 2021
Dividend Pay DateNov 23 2021
Days until Ex dividend15 days
Days until Dividend pay date33 days

Does HLFG pay a reliable dividends?

See HLFG dividend history and benchmarks

Valuation

Is Hong Leong Financial Group Berhad undervalued compared to its fair value and its price relative to the market?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLFG (MYR18.54) is trading below our estimate of fair value (MYR22.57)

Significantly Below Fair Value: HLFG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HLFG is good value based on its PE Ratio (9.3x) compared to the MY Banks industry average (11.6x).

PE vs Market: HLFG is good value based on its PE Ratio (9.3x) compared to the MY market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: HLFG is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: HLFG's PB Ratio (0.9x) is in line with the MY Banks industry average.


Future Growth

How is Hong Leong Financial Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLFG's forecast earnings growth (6.6% per year) is above the savings rate (3.6%).

Earnings vs Market: HLFG's earnings (6.6% per year) are forecast to grow slower than the MY market (11% per year).

High Growth Earnings: HLFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: HLFG's revenue (8.3% per year) is forecast to grow faster than the MY market (6.5% per year).

High Growth Revenue: HLFG's revenue (8.3% 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 (10.6%).


Past Performance

How has Hong Leong Financial Group Berhad performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLFG has high quality earnings.

Growing Profit Margin: HLFG's current net profit margins (40.8%) are higher than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: HLFG's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: HLFG's earnings growth over the past year (22%) exceeds its 5-year average (7.9% per year).

Earnings vs Industry: HLFG earnings growth over the past year (22%) exceeded the Banks industry 10.8%.


Return on Equity

High ROE: HLFG's Return on Equity (9.9%) is considered low.


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 (8.1x) is low.

Allowance for Bad Loans: HLFG has a sufficient allowance for bad loans (247%).

Low Risk Liabilities: 82% 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 (54%).

Low Risk Deposits: HLFG's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: HLFG has an appropriate level of bad loans (0.5%).


Dividend

What is Hong Leong Financial Group Berhad current dividend yield, its reliability and sustainability?

2.16%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 21 2021Ex Dividend DateNov 05 2021Dividend Pay DateNov 23 202118 days from Ex DividendBuy in the next 15 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HLFG's dividend (2.16%) is higher than the bottom 25% of dividend payers in the MY market (1.49%).

High Dividend: HLFG's dividend (2.16%) is low compared to the top 25% of dividend payers in the MY market (4.12%).


Stability and Growth of Payments

Stable Dividend: HLFG's dividends per share have been stable 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 (20%), HLFG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLFG's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Kong Khoon Tan (64 yo)

5.67yrs

Tenure

RM9,925,000

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. He serves as a Ch...


CEO Compensation Analysis

Compensation vs Market: Kong Khoon's total compensation ($USD2.39M) is above average for companies of similar size in the MY market ($USD1.05M).

Compensation vs Earnings: Kong Khoon's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HLFG's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: HLFG's board of directors are not considered experienced ( 2.4 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 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: RM21.020b
  • Shares outstanding: 1.13b
  • Website: https://www.hlfg.com.my

Number of Employees


Location

  • Hong Leong Financial Group Berhad
  • Menara Hong Leong
  • Level 30
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50490
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:15
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.