Executive Summary
Hong Leong Financial Group Berhad, an investment holding company, provides a range of conventional and Islamic financial products and services to consumer, corporate, and institutional customers. More Details
Rewards
Risk Analysis
No risks detected for HLFG from our risk checks.
Snowflake Analysis
Flawless balance sheet established 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 is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HLFG's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-2.9%
HLFG
1.4%
MY Banks
0.3%
MY Market
1 Year Return
0.8%
HLFG
-4.7%
MY Banks
2.4%
MY Market
Return vs Industry: HLFG exceeded the MY Banks industry which returned -4.7% over the past year.
Return vs Market: HLFG underperformed the MY Market which returned 2.4% over the past year.
Shareholder returns
| HLFG | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.9% | 1.4% | 0.3% |
| 30 Day | -7.9% | -4.3% | -2.3% |
| 90 Day | 16.1% | 21.2% | 7.3% |
| 1 Year | 2.7%0.8% | -0.9%-4.7% | 5.8%2.4% |
| 3 Year | -0.1%-6.2% | -5.8%-16.7% | -4.5%-13.2% |
| 5 Year | 39.1%24.6% | 29.7%4.9% | 15.5%-3.7% |
Long-Term 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
1 week ago | Simply Wall St
You Have To Love Hong Leong Financial Group Berhad's (KLSE:HLFG) Dividend1 month ago | Simply Wall St
Hong Leong Financial Group Berhad (KLSE:HLFG) Shareholders Have Enjoyed A 26% Share Price Gain2 months ago | Simply Wall St
Should You Buy Hong Leong Financial Group Berhad (KLSE:HLFG) For Its Upcoming Dividend?Valuation
Is Hong Leong Financial Group Berhad undervalued compared to its fair value and its price relative to the market?
9.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HLFG (MYR16.7) is trading below our estimate of fair value (MYR18.45)
Significantly Below Fair Value: HLFG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HLFG's PE Ratio (9.7x) is in line with the MY Banks industry average.
PE vs Market: HLFG is good value based on its PE Ratio (9.7x) compared to the MY market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: HLFG is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: HLFG is overvalued based on its PB Ratio (0.9x) 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?
9.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HLFG's forecast earnings growth (9.2% per year) is above the savings rate (3.7%).
Earnings vs Market: HLFG's earnings (9.2% per year) are forecast to grow slower than the MY market (19.2% per year).
High Growth Earnings: HLFG's earnings are forecast to grow, but not significantly.
Revenue vs Market: HLFG's revenue (7.5% per year) is forecast to grow faster than the MY market (7.1% per year).
High Growth Revenue: HLFG's revenue (7.5% 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 (9.5%).
Next Steps
Past Performance
How has Hong Leong Financial Group Berhad performed over the past 5 years?
6.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HLFG has high quality earnings.
Growing Profit Margin: HLFG's current net profit margins (39%) are higher than last year (36.3%).
Past Earnings Growth Analysis
Earnings Trend: HLFG's earnings have grown by 6.9% per year over the past 5 years.
Accelerating Growth: HLFG's earnings growth over the past year (2.6%) is below its 5-year average (6.9% per year).
Earnings vs Industry: HLFG earnings growth over the past year (2.6%) exceeded the Banks industry -8.5%.
Return on Equity
High ROE: HLFG's Return on Equity (9%) 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 (8.1x) is low.
Allowance for Bad Loans: HLFG has a sufficient allowance for bad loans (190%).
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 (78%) is appropriate.
Level of Bad Loans: HLFG has an appropriate level of bad loans (0.5%).
Next Steps
Dividend
What is Hong Leong Financial Group Berhad current dividend yield, its reliability and sustainability?
2.28%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HLFG's dividend (2.28%) is higher than the bottom 25% of dividend payers in the MY market (1.4%).
High Dividend: HLFG's dividend (2.28%) is low compared to the top 25% of dividend payers in the MY market (4.31%).
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 (14.5%), 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 (25.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Kong Khoon Tan (63 yo)
4.92yrs
Tenure
RM8,153,000
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 ($USD2.01M) is above average for companies of similar size in the MY market ($USD1.28M).
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 | 4.92yrs | RM8.15m | no data | |
| Chief Financial Officer | 0.083yr | no data | no data | |
| Group MD & CEO of Hong Leong Bank Berhad | 4.92yrs | 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 | |
| Group Company Secretary | 1.83yrs | no data | no data |
3.4yrs
Average Tenure
55yo
Average Age
Experienced Management: HLFG's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.92yrs | RM8.15m | no data | |
| Non-Executive Chairman | 11.75yrs | RM23.00k | 1.06% MYR 203.0m | |
| Independent Non-Executive Director | 0.75yr | RM23.00k | no data | |
| Independent Non-Executive Director | 1.83yrs | RM161.00k | no data | |
| Independent Non-Executive Director | 1.17yrs | RM66.00k | no data | |
| Independent Non-Executive Director | 1.67yrs | RM116.00k | no data | |
| Independent & Non Executive Director | 0.25yr | no data | no data |
1.7yrs
Average Tenure
63yo
Average Age
Experienced Board: HLFG's board of directors are not considered experienced ( 1.7 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: RM19.116b
- 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 a range of conventional and Islamic financial products and services to consumer, corporate, and institutional customers. The compa...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 11:10 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/06/30 |
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.