Hong Leong Industries Berhad

KLSE:HLIND Stock Report

Market Cap: RM 4.4b

Hong Leong Industries Berhad Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 HLIND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HLIND (MYR14.1) is trading below our estimate of fair value (MYR64.12)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HLIND. This is calculated by dividing HLIND's market cap by their current earnings.
What is HLIND's PE Ratio?
PE Ratio11.4x
EarningsRM 387.90m
Market CapRM 4.44b

Price to Earnings Ratio vs Peers

How does HLIND's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.5x
BJCORP Berjaya Corporation Berhad
4.3xn/aRM 1.8b
HAPSENG Hap Seng Consolidated Berhad
24.5xn/aRM 9.7b
SIME Sime Darby Berhad
12.1x10.2%RM 15.2b
SUNWAY Sunway Berhad
32.9x9.2%RM 27.6b
HLIND Hong Leong Industries Berhad
11.4xn/aRM 4.4b

Price-To-Earnings vs Peers: HLIND is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (18.5x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HLIND 11.4xIndustry Avg. 13.3xNo. of Companies17PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HLIND is good value based on its Price-To-Earnings Ratio (11.4x) compared to the Asian Industrials industry average (13.3x).

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 Ratio11.4x
Fair PE Ration/a

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

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.

Discover undervalued companies

Kimlun Corporation Berhad

RM 494.7m

An investment holding company, provides engineering and construction services in Malaysia and Singapore.

KIMLUN

RM 1.40

7D

3.7%

1Y

76.1%

Inta Bina Group Berhad

RM 259.2m

An investment holding company, undertakes building construction projects in Malaysia.

INTA

RM 0.47

7D

5.6%

1Y

80.8%

Kerjaya Prospek Group Berhad

RM 2.7b

An investment holding company, provides building construction, project management, interior fit-out, and miscellaneous construction related services for the residential and commercial buildings in Malaysia.

KERJAYA

RM 2.12

7D

2.4%

1Y

42.3%