SGX:H22

Stock Analysis Report

Executive Summary

Hong Leong Asia Ltd., an investment holding company, manufactures and distributes diesel engines and related products, building materials, industrial packaging products, and air-conditioning systems in the People’s Republic of China, Singapore, Malaysia, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Risks

  • Hong Leong Asia is not covered by any analysts.

Share Price & News

How has Hong Leong Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.5%

SGX:H22

-0.6%

SG Machinery

-0.1%

SG Market


1 Year Return

-11.5%

SGX:H22

-12.2%

SG Machinery

-2.8%

SG Market

H22 matched the Machinery industry (-12.2%) over the past year.

H22 underperformed the Market in Singapore which returned -2.8% over the past year.


Share holder returns

H22IndustryMarket
7 Day4.5%-0.6%-0.1%
30 Day-4.2%-21.5%-6.0%
90 Day10.6%-16.3%-0.8%
1 Year-9.1%-11.5%-10.2%-12.2%1.0%-2.8%
3 Year-17.3%-20.1%7.4%0.5%15.1%2.9%
5 Year-59.4%-62.3%-41.8%-48.2%7.7%-10.0%

Price Volatility Vs. Market

How volatile is Hong Leong Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hong Leong Asia undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Hong Leong Asia's share price is below the future cash flow value, and at a moderate discount (> 20%).

Hong Leong Asia's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Hong Leong Asia is overvalued based on earnings compared to the SG Machinery industry average.

Hong Leong Asia is good value based on earnings compared to the Singapore market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hong Leong Asia, we can't assess if its growth is good value.


Price Based on Value of Assets

Hong Leong Asia is good value based on assets compared to the SG Machinery industry average.


Next Steps

Future Growth

How is Hong Leong Asia expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Hong Leong Asia is high growth as no revenue estimate data is available.

Hong Leong Asia's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Hong Leong Asia's revenue growth to the Singapore market average as no estimate data is available.

Hong Leong Asia's earnings growth is expected to exceed the Singapore market average.

Hong Leong Asia's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hong Leong Asia will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

3.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hong Leong Asia's year on year earnings growth rate has been positive over the past 5 years.

Hong Leong Asia's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hong Leong Asia's 1-year earnings growth is negative, it can't be compared to the SG Machinery industry average.


Return on Equity

Hong Leong Asia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hong Leong Asia used its assets less efficiently than the SG Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Hong Leong Asia has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hong Leong Asia's financial position?


Financial Position Analysis

Hong Leong Asia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hong Leong Asia's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hong Leong Asia's level of debt (37.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (40.1% vs 37.4% today).

Debt is well covered by operating cash flow (31.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Hong Leong Asia's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Hong Leong Asia's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Hong Leong Asia has not reported any payouts.

Unable to verify if Hong Leong Asia's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Hong Leong Asia has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hong Leong Asia's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Eng Kwee Tan (65yo)

1.6yrs

Tenure

0

Mr. Eng Kwee Tan has been Non Executive Director of Tasek Corporation Berhad since January 2, 2019. Mr. Tan has been Director of China Yuchai International Limited since February 22, 2019. He has been Chie ...


Management Age and Tenure

3.6yrs

Average Tenure

58yo

Average Age

The tenure for the Hong Leong Asia management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

63yo

Average Age

The average tenure for the Hong Leong Asia board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyS$144,72030 Oct 18
Hong Leong Investment Holdings Pte. Ltd.
EntityCompany
Shares268,000
Max PriceS$0.54
BuyS$174,239,61026 Oct 18
Hong Leong Investment Holdings Pte. Ltd.
EntityCompany
Shares322,665,657
Max PriceS$0.54
BuyS$21,60026 Oct 18
Ernest Colin Lee
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares40,000
Max PriceS$0.54
BuyS$151,20026 Oct 18
Sii Ting
EntityIndividual
Shares280,000
Max PriceS$0.54
BuyS$1,033,18326 Oct 18
Leng Peck Kwek
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,913,300
Max PriceS$0.54

Ownership Breakdown


Management Team

  • Leng Peck Kwek (63yo)

    Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: S$883.00k
  • Weng Ming Hoh (58yo)

    President of Diesel Engines Unit & China Yuchai International Limited

    • Tenure: 6.1yrs
  • Joanne Yeo

    Company Secretary

    • Tenure: 0.0yrs
  • Jaslin Ng

    Company Secretary

    • Tenure: 0.0yrs
  • Eng Kwee Tan (65yo)

    CEO & Executive Director

    • Tenure: 1.6yrs
  • Harjanto Kwek (50yo)

    General Manager of Group Human Resources

    • Tenure: 0.0yrs
  • Siah Lee (54yo)

    Chief Operations Officer of Industrial Packaging Group

    • Tenure: 3.6yrs
  • Benedict Lee

    Head of Internal Audit

    • Tenure: 3.8yrs
  • Sook Han Leong

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Raymond Lim

    General Manager of Airwell Air-conditioning Technology (China) Co.

    • Tenure: 0.0yrs

Board Members

  • Ernest Colin Lee (78yo)

    Lead Independent Director

    • Tenure: 6.5yrs
    • Compensation: S$134.00k
  • Leng Peck Kwek (63yo)

    Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: S$883.00k
  • Eng Kwee Tan (65yo)

    CEO & Executive Director

    • Tenure: 1.6yrs
  • Sey Ming Ng (44yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: S$65.00k
  • Caroline Kwong (60yo)

    Non-Executive & Independent Director

    • Tenure: 3.5yrs
    • Compensation: S$100.00k
  • Chian Khong Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs

Company Information

Hong Leong Asia Ltd.'s company bio, 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$437.473m
  • Shares outstanding: 747.82m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
H22SGX (Singapore Exchange)YesOrdinary SharesSGSGDMar 1998

Biography

Hong Leong Asia Ltd., an investment holding company, manufactures and distributes diesel engines and related products, building materials, industrial packaging products, and air-conditioning systems in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:40
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.