Hong Leong Industries Berhad (KLSE:HLIND) - Share price, News & Analysis

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

HLIND (MYR9.14) is trading above our estimate of [[fair value]] (MYR9.07)

HLIND fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

HLIND Stock Overview

Hong Leong Industries Berhad, an investment holding company, manufactures and sells consumer and industrial products in Malaysia, Australia, Vietnam, Thailand, Singapore, Taiwan, and internationally.

Risk Analysis

Dividend of 5.69% is not well covered by earnings or forecast to be in the next 3 years

High level of non-cash earnings

Hong Leong Industries Berhad Competitors

Boustead Holdings Berhad

KLSE:BSTEAD

RM1.6b

Sunway Berhad

KLSE:SUNWAY

RM8.0b

Kumpulan Fima Berhad

KLSE:KFIMA

RM615.7m

Hap Seng Consolidated Berhad

KLSE:HAPSENG

RM18.1b

Price History & Performance

Summary of all time highs, changes and price drops for Hong Leong Industries Berhad
Historical stock prices
Current Share Price	RM9.14
52 Week High	RM9.90
52 Week Low	RM8.57
Beta	0.47
1 Month Change	5.18%
3 Month Change	2.12%
1 Year Change	0.66%
3 Year Change	-16.45%
5 Year Change	-6.73%
Change since IPO	71.76%

Recent News & Updates

May 27

Hong Leong Industries Berhad (KLSE:HLIND) Will Pay A Dividend Of RM0.35

Hong Leong Industries Berhad ( KLSE:HLIND ) will pay a dividend of RM0.35 on the 23rd of June. The dividend yield will...

Shareholder Returns

	HLIND	MY Industrials	MY Market
7D	0.5%	-2.7%	-0.5%
1Y	0.7%	0.05%	-4.6%

Return vs Industry: HLIND matched the MY Industrials industry which returned 1.2% over the past year.

Return vs Market: HLIND exceeded the MY Market which returned -4.1% over the past year.

Price Volatility

Is HLIND's price volatile compared to industry and market?
HLIND volatility
HLIND Average Weekly Movement	2.2%
Industrials Industry Average Movement	4.6%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.7%
10% least volatile stocks in MY Market	2.7%

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

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

About the Company

Founded	Employees	CEO	Website
1964	n/a	Jim Khor	https://www.hli.com.my

Hong Leong Industries Berhad, an investment holding company, manufactures and sells consumer and industrial products in Malaysia, Australia, Vietnam, Thailand, Singapore, Taiwan, and internationally. The company operates through Consumer Products and Industrial Products segments. The Consumer Products segment manufactures, assembles, and distributes motorcycles, scooters, and related parts and products; and manufactures and sells ceramic tiles, as well as distributes, trades in, and provides services in marine related products.

Hong Leong Industries Berhad Fundamentals Summary

How do Hong Leong Industries Berhad's earnings and revenue compare to its market cap?
HLIND fundamental statistics
Market Cap	RM2.87b
Earnings (TTM)	RM178.21m
Revenue (TTM)	RM2.14b

16.1x

P/E Ratio

1.3x

P/S Ratio

Is HLIND overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLIND income statement (TTM)
Revenue	RM2.14b
Cost of Revenue	RM1.75b
Gross Profit	RM390.69m
Other Expenses	RM212.48m
Earnings	RM178.21m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.57
Gross Margin	18.27%
Net Profit Margin	8.33%
Debt/Equity Ratio	0.9%

How did HLIND perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

92%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HLIND. This is calculated by dividing HLIND's market cap by their current preferred multiple.
What is HLIND's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM2.87b

HLIND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	5.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

HLIND PE Ratio vs Peers

The above table shows the PE ratio for HLIND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.4x
BSTEAD Boustead Holdings Berhad	3.7x	n/a	RM1.6b
SUNWAY Sunway Berhad	20.6x	15.3%	RM8.0b
KFIMA Kumpulan Fima Berhad	6x	n/a	RM615.7m
HAPSENG Hap Seng Consolidated Berhad	19.4x	n/a	RM18.1b
HLIND Hong Leong Industries Berhad	16.1x	n/a	RM2.9b

Price-To-Earnings vs Peers: HLIND is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (12.4x).

Price to Earnings Ratio vs Industry

How does HLIND's PE Ratio compare vs other companies in the Asian Industrials Industry?

Price-To-Earnings vs Industry: HLIND is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the MY Industrials industry average (15.4x)

Price to Earnings Ratio vs Fair Ratio

What is HLIND'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.

HLIND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HLIND's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: HLIND (MYR9.14) is trading above our estimate of fair value (MYR9.07)

Significantly Below Fair Value: HLIND is trading above our estimate of fair value.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Hong Leong Industries Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.8%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hong Leong Industries Berhad has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Hong Leong Industries Berhad's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HLIND has a high level of non-cash earnings.

Growing Profit Margin: HLIND's current net profit margins (8.3%) are lower than last year (9.1%).

Past Earnings Growth Analysis

Earnings Trend: HLIND's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: HLIND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HLIND had negative earnings growth (-20.6%) over the past year, making it difficult to compare to the Industrials industry average (26.2%).

Return on Equity

High ROE: HLIND's Return on Equity (11%) is considered low.

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Financial Health

How is Hong Leong Industries Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HLIND's short term assets (MYR2.0B) exceed its short term liabilities (MYR412.7M).

Long Term Liabilities: HLIND's short term assets (MYR2.0B) exceed its long term liabilities (MYR34.5M).

Debt to Equity History and Analysis

Debt Level: HLIND has more cash than its total debt.

Reducing Debt: HLIND's debt to equity ratio has reduced from 7.1% to 0.9% over the past 5 years.

Debt Coverage: HLIND's debt is well covered by operating cash flow (357.2%).

Interest Coverage: HLIND earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

5.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HLIND's dividend (5.69%) is higher than the bottom 25% of dividend payers in the MY market (2.03%).

High Dividend: HLIND's dividend (5.69%) is in the top 25% of dividend payers in the MY market (4.84%)

Stability and Growth of Payments

Stable Dividend: HLIND's dividend payments have been volatile in the past 10 years.

Growing Dividend: HLIND's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (91.7%), HLIND's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (616.3%), HLIND's dividend payments are not well covered by cash flows.

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Management

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

2.0yrs

Average management tenure

CEO

Jim Khor (58 yo)

2yrs

Tenure

Dr. Mun Wei Khor, also known as Jim, serves as Group Managing Director at Hong Leong Industries Berhad since August 1, 2020 and Executive/Non-Independent Director since August 2020. He has been Managing Di...

Leadership Team

Experienced Management: HLIND's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: HLIND's board of directors are considered experienced (4.4 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30