Hong Leong Financial Group Berhad

KLSE:HLFG Stock Report

Market Cap: RM 20.5b

Hong Leong Financial Group Berhad Valuation

Is HLFG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HLFG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
RM 34.63
Fair Value
47.7% undervalued intrinsic discount
4
Number of Analysts

Below Fair Value: HLFG (MYR18.1) is trading below our estimate of fair value (MYR34.63)

Significantly Below Fair Value: HLFG is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HLFG?

Key metric: As HLFG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HLFG. This is calculated by dividing HLFG's market cap by their current earnings.
What is HLFG's PE Ratio?
PE Ratio6.2x
EarningsRM 3.30b
Market CapRM 20.53b

Price to Earnings Ratio vs Peers

How does HLFG's PE Ratio compare to its peers?

The above table shows the PE ratio for HLFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10x
AMBANK AMMB Holdings Berhad
9.2x3.6%RM 18.7b
RHBBANK RHB Bank Berhad
9.8x6.7%RM 28.0b
HLBANK Hong Leong Bank Berhad
9.7x7.4%RM 41.4b
ABMB Alliance Bank Malaysia Berhad
11.2x6.5%RM 8.1b
HLFG Hong Leong Financial Group Berhad
6.2x5.6%RM 20.5b

Price-To-Earnings vs Peers: HLFG is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (10x).

Price to Earnings Ratio vs Industry

How does HLFG's PE Ratio compare vs other companies in the Asian Banks Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
HLFG 6.2xIndustry Avg. 9.1xNo. of Companies73PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HLFG is good value based on its Price-To-Earnings Ratio (6.2x) compared to the Asian Banks industry average (9x).

Price to Earnings Ratio vs Fair Ratio

What is HLFG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HLFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: HLFG is good value based on its Price-To-Earnings Ratio (6.2x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HLFG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 18.10
RM 22.76
+25.7%
3.9%RM 23.80RM 21.40n/a4
Jan ’26RM 18.50
RM 22.76
+23.0%
3.9%RM 23.80RM 21.40n/a4
Dec ’25RM 18.46
RM 22.76
+23.3%
3.9%RM 23.80RM 21.40n/a4
Nov ’25RM 18.42
RM 22.61
+22.7%
3.2%RM 23.20RM 21.40n/a4
Oct ’25RM 19.28
RM 22.61
+17.3%
3.2%RM 23.20RM 21.40n/a4
Sep ’25RM 18.70
RM 22.06
+18.0%
4.2%RM 23.20RM 20.94n/a4
Aug ’25RM 17.36
RM 21.34
+22.9%
4.0%RM 22.50RM 20.23n/a4
Jul ’25RM 17.26
RM 21.34
+23.7%
4.0%RM 22.50RM 20.23n/a4
Jun ’25RM 17.02
RM 21.34
+25.4%
4.0%RM 22.50RM 20.23n/a4
May ’25RM 16.72
RM 21.21
+26.9%
4.7%RM 22.50RM 19.86n/a4
Apr ’25RM 16.82
RM 21.21
+26.1%
4.7%RM 22.50RM 19.86n/a4
Mar ’25RM 16.84
RM 21.18
+25.8%
4.7%RM 22.50RM 19.86n/a4
Feb ’25RM 16.42
RM 20.75
+26.4%
3.1%RM 21.70RM 19.86RM 18.104
Jan ’25RM 16.44
RM 20.75
+26.2%
3.1%RM 21.70RM 19.86RM 18.504
Dec ’24RM 16.48
RM 20.75
+25.9%
3.1%RM 21.70RM 19.86RM 18.464
Nov ’24RM 17.22
RM 21.89
+27.1%
6.3%RM 23.71RM 19.86RM 18.424
Oct ’24RM 17.70
RM 21.89
+23.7%
6.3%RM 23.71RM 19.86RM 19.284
Sep ’24RM 18.12
RM 22.63
+24.9%
9.6%RM 26.50RM 19.86RM 18.705
Aug ’24RM 18.30
RM 22.55
+23.2%
10.0%RM 26.50RM 19.86RM 17.365
Jul ’24RM 17.66
RM 22.55
+27.7%
10.0%RM 26.50RM 19.86RM 17.265
Jun ’24RM 17.46
RM 22.95
+31.4%
10.6%RM 26.50RM 19.86RM 17.025
May ’24RM 18.12
RM 23.50
+29.7%
8.0%RM 26.50RM 21.30RM 16.725
Apr ’24RM 17.98
RM 23.50
+30.7%
8.0%RM 26.50RM 21.30RM 16.825
Mar ’24RM 18.12
RM 23.28
+28.5%
7.7%RM 26.50RM 21.30RM 16.845
Feb ’24RM 18.50
RM 23.06
+24.6%
8.3%RM 26.50RM 21.30RM 16.425
Analyst Price Target
Consensus Narrative from 4 Analysts
RM 22.76
Fair Value
20.5% undervalued intrinsic discount
4
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/31 04:06
End of Day Share Price 2025/01/31 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Hong Leong Financial Group Berhad is covered by 13 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Poh OngAmInvestment Bank Berhad
Joanna CheahCredit Suisse
Sue Lin LimDBS Bank Ltd