Hong Leong Asia Ltd., an investment holding company, manufactures and distributes diesel engines and related products, building materials, rigid packaging products, and air-conditioning systems in the People’s Republic of China, Singapore, Malaysia, and internationally.
No risks detected for H22 from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||S$0.83|
|52 Week High||S$0.46|
|52 Week Low||S$1.07|
|1 Month Change||1.84%|
|3 Month Change||-9.78%|
|1 Year Change||72.92%|
|3 Year Change||45.61%|
|5 Year Change||14.48%|
|Change since IPO||-46.10%|
Recent News & Updates
Is There Now An Opportunity In Hong Leong Asia Ltd. (SGX:H22)?
Hong Leong Asia Ltd. ( SGX:H22 ), is not the largest company out there, but it saw significant share price movement...
Does Hong Leong Asia (SGX:H22) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Return Trends At Hong Leong Asia (SGX:H22) Aren't Appealing
What are the early trends we should look for to identify a stock that could multiply in value over the long term...
|H22||SG Machinery||SG Market|
Return vs Industry: H22 exceeded the SG Machinery industry which returned 14.3% over the past year.
Return vs Market: H22 exceeded the SG Market which returned 21.2% over the past year.
Stable Share Price: H22 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: H22's weekly volatility (4%) has been stable over the past year.
About the Company
Hong Leong Asia Ltd., an investment holding company, manufactures and distributes diesel engines and related products, building materials, rigid packaging products, and air-conditioning systems in the People’s Republic of China, Singapore, Malaysia, and internationally. Its Diesel Engines segment offers light-duty, medium-duty, and heavy-duty engines for trucks, buses, passenger vehicles, industrial equipment, and marine and agriculture applications; engines for diesel-powered generators; automobile spare parts; and maintenance and retrofitting services. This segment offers diesel-powered generators, industrial engines, marine engines, and natural gas engines.
Hong Leong Asia Fundamentals Summary
|H22 fundamental statistics|
Is H22 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|H22 income statement (TTM)|
|Cost of Revenue||S$4.41b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.087|
|Net Profit Margin||1.25%|
How did H22 perform over the long term?See historical performance and comparison
1.2%Current Dividend Yield
Is Hong Leong Asia undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: H22 (SGD0.83) is trading below our estimate of fair value (SGD0.85)
Significantly Below Fair Value: H22 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: H22 is good value based on its PE Ratio (9.5x) compared to the SG Machinery industry average (13x).
PE vs Market: H22 is good value based on its PE Ratio (9.5x) compared to the SG market (13.5x).
Price to Earnings Growth Ratio
PEG Ratio: H22 is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: H22 is good value based on its PB Ratio (0.7x) compared to the SG Machinery industry average (0.8x).
How is Hong Leong Asia forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: H22's forecast earnings growth (15% per year) is above the savings rate (1.8%).
Earnings vs Market: H22's earnings (15% per year) are forecast to grow slower than the SG market (15.2% per year).
High Growth Earnings: H22's earnings are forecast to grow, but not significantly.
Revenue vs Market: H22's revenue (1.2% per year) is forecast to grow slower than the SG market (7.2% per year).
High Growth Revenue: H22's revenue (1.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: H22's Return on Equity is forecast to be low in 3 years time (8.5%).
How has Hong Leong Asia performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: H22 has high quality earnings.
Growing Profit Margin: H22's current net profit margins (1.3%) are higher than last year (1.1%).
Past Earnings Growth Analysis
Earnings Trend: H22 has become profitable over the past 5 years, growing earnings by 62.1% per year.
Accelerating Growth: H22's earnings growth over the past year (41.6%) is below its 5-year average (62.1% per year).
Earnings vs Industry: H22 earnings growth over the past year (41.6%) exceeded the Machinery industry 39.4%.
Return on Equity
High ROE: H22's Return on Equity (6.6%) is considered low.
How is Hong Leong Asia's financial position?
Financial Position Analysis
Short Term Liabilities: H22's short term assets (SGD4.5B) exceed its short term liabilities (SGD3.3B).
Long Term Liabilities: H22's short term assets (SGD4.5B) exceed its long term liabilities (SGD435.0M).
Debt to Equity History and Analysis
Debt Level: H22's debt to equity ratio (35.2%) is considered satisfactory.
Reducing Debt: H22's debt to equity ratio has increased from 30.8% to 35.2% over the past 5 years.
Debt Coverage: H22's debt is well covered by operating cash flow (25.4%).
Interest Coverage: H22's interest payments on its debt are well covered by EBIT (5.2x coverage).
What is Hong Leong Asia current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: H22's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (1.94%).
High Dividend: H22's dividend (1.2%) is low compared to the top 25% of dividend payers in the SG market (5.22%).
Stability and Growth of Payments
Stable Dividend: H22 is not paying a notable dividend for the SG market, therefore no need to check if payments are stable.
Growing Dividend: H22 is not paying a notable dividend for the SG market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: H22 is not paying a notable dividend for the SG market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of H22's dividend in 3 years as they are not forecast to pay a notable one for the SG market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Stephen Ho (62 yo)
Mr. Kiam Kong Ho, also known as Stephen, has been Chief Executive Officer of Hong Leong Asia Ltd. since August 17, 2020 and has been its Executive Director since August 03, 2020. He is Non Independent and...
Experienced Management: H22's management team is considered experienced (2.9 years average tenure).
Experienced Board: H22's board of directors are considered experienced (4.4 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hong Leong Asia Ltd.'s employee growth, exchange listings and data sources
- Name: Hong Leong Asia Ltd.
- Ticker: H22
- Exchange: SGX
- Founded: 1941
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: S$617.022m
- Shares outstanding: 747.91m
- Website: https://www.hlasia.com.sg
Number of Employees
- Hong Leong Asia Ltd.
- No. 26-00 Hong Leong Building
- 16 Raffles Quay
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/19 11:04|
|End of Day Share Price||2021/10/19 00:00|
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.