KLSE:HLFG

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Hong Leong Financial Group Berhad

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.


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

HLFGIndustryMarket
7 Day11.2%10.7%4.0%
30 Day16.4%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 Year9.6%-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

Valuation

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

NamePositionTenureCompensationOwnership
Kong Khoon Tan
President4.33yrsRM12.05mno data
Seong Chew
Group Chief Financial Officer13.58yrsno datano data
Domenic Fuda
Group MD & CEO of Hong Leong Bank Berhad4.33yrsno datano data
Jim Lee
Group MD & CEO of Hong Leong Investment Bank Berhadno datano datano data
Guat Loh
Group MD & CEO of Hong Leong Assurance Berhadno datano datano data
Tiong Lee
Company Secretary1.25yrsno datano data

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: HLFG's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kong Khoon Tan
President4.33yrsRM12.05mno data
Leng Quek
Chairman11.17yrsRM35.00k1.06% MYR179.5m
Noorazman Bin Aziz
Independent Non Executive Director0.17yrno datano data
Lean Lim
Non-Executive Independent Director8.83yrsRM174.00kno data
Kok Wei Saw
Non-Executive Independent Director8.83yrsRM167.00kno data
Ket Leong
Independent Non-Executive Director1.25yrsno datano data
Chye Chong
Independent & Non Executive Director0.58yrno datano data
Raja Binti Raja Othman
Independent Non Executive Director1.08yrsRM16.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLFGKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJan 1992
HLFB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 16:19
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


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.