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H22

Hong Leong AsiaSGX:H22 Stock Report

Market Cap

S$617.0m

7D

-0.6%

1Y

72.9%

Updated

19 Oct, 2021

Data

Company Financials +
H22 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends0/6

H22 Overview

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.

Price History & Performance

Summary of all time highs, changes and price drops for Hong Leong Asia
Historical stock prices
Current Share PriceS$0.83
52 Week HighS$0.46
52 Week LowS$1.07
Beta1.75
1 Month Change1.84%
3 Month Change-9.78%
1 Year Change72.92%
3 Year Change45.61%
5 Year Change14.48%
Change since IPO-46.10%

Recent News & Updates

Aug 16
Is There Now An Opportunity In Hong Leong Asia Ltd. (SGX:H22)?

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...

May 31
Does Hong Leong Asia (SGX:H22) Have A Healthy Balance Sheet?

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...

May 10
Return Trends At Hong Leong Asia (SGX:H22) Aren't Appealing

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...

Shareholder Returns

H22SG MachinerySG Market
7D-0.6%2.0%1.8%
1Y72.9%14.3%21.2%

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.

Price Volatility

Is H22's price volatile compared to industry and market?
H22 volatility
H22 Beta1.75
Industry Beta1.27
Market Beta1

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

FoundedEmployeesCEOWebsite
19415,928Stephen Hohttps://www.hlasia.com.sg

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

How do Hong Leong Asia's earnings and revenue compare to its market cap?
H22 fundamental statistics
Market CapS$617.02m
Earnings (TTM)S$65.05m
Revenue (TTM)S$5.20b

9.5x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
H22 income statement (TTM)
RevenueS$5.20b
Cost of RevenueS$4.41b
Gross ProfitS$785.06m
ExpensesS$720.02m
EarningsS$65.05m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.087
Gross Margin15.10%
Net Profit Margin1.25%
Debt/Equity Ratio35.2%

How did H22 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Hong Leong Asia undervalued compared to its fair value and its price relative to the market?

2.7%

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).


Future Growth

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

15.0%

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%).


Past Performance

How has Hong Leong Asia performed over the past 5 years?

62.1%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.20%

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.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Stephen Ho (62 yo)

1.17yrs

Tenure

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...


Leadership Team

Experienced Management: H22's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: H22'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hong Leong Asia Ltd.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Hong Leong Asia Ltd.
  • No. 26-00 Hong Leong Building
  • 16 Raffles Quay
  • Singapore
  • 48581
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 11:04
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.