SGX:H22

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Executive Summary

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. More Details


Snowflake Analysis

Adequate balance sheet with proven track record.

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

Stable Share Price: H22 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

H22

-0.2%

SG Machinery

-0.09%

SG Market


1 Year Return

-21.5%

H22

-66.1%

SG Machinery

-21.9%

SG Market

Return vs Industry: H22 exceeded the SG Machinery industry which returned -66.1% over the past year.

Return vs Market: H22 matched the SG Market which returned -21.9% over the past year.


Shareholder returns

H22IndustryMarket
7 Day0%-0.2%-0.09%
30 Day3.3%1.8%2.4%
90 Day0%-27.2%-2.0%
1 Year-20.0%-21.5%-65.7%-66.1%-17.6%-21.9%
3 Year-58.0%-59.9%-74.5%-75.3%-20.1%-29.8%
5 Year-40.9%-44.8%-76.7%-78.2%-5.0%-22.3%

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 compared to its fair value and its price relative to the market?

10.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: H22 (SGD0.48) is trading above our estimate of fair value (SGD0.21)

Significantly Below Fair Value: H22 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: H22 is good value based on its PE Ratio (10.7x) compared to the SG Machinery industry average (11.2x).

PE vs Market: H22 is good value based on its PE Ratio (10.7x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate H22's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: H22 is good value based on its PB Ratio (0.4x) compared to the SG Machinery industry average (0.7x).


Next Steps

Future Growth

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

19.7%

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 Asia 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.


Next Steps

Past Performance

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

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H22 has high quality earnings.

Growing Profit Margin: H22's current net profit margins (0.8%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: H22's earnings have grown significantly by 55.6% per year over the past 5 years.

Accelerating Growth: H22's earnings growth over the past year (11%) is below its 5-year average (55.6% per year).

Earnings vs Industry: H22 earnings growth over the past year (11%) exceeded the Machinery industry -5.1%.


Return on Equity

High ROE: H22's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Hong Leong Asia's financial position?


Financial Position Analysis

Short Term Liabilities: H22's short term assets (SGD4.2B) exceed its short term liabilities (SGD2.9B).

Long Term Liabilities: H22's short term assets (SGD4.2B) exceed its long term liabilities (SGD583.1M).


Debt to Equity History and Analysis

Debt Level: H22's debt to equity ratio (40%) is considered high.

Reducing Debt: H22's debt to equity ratio has increased from 39.9% to 40% over the past 5 years.

Debt Coverage: H22's debt is well covered by operating cash flow (24.5%).

Interest Coverage: H22's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: H22's dividend (2.11%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: H22's dividend (2.11%) is low compared to the top 25% of dividend payers in the SG market (5.36%).


Stability and Growth of Payments

Stable Dividend: H22's dividend payments have been volatile in the past 10 years.

Growing Dividend: H22's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.5%), H22's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Stephen Ho (61 yo)

0.17

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

NamePositionTenureCompensationOwnership
Leng Peck Kwek
Executive Chairman3.5yrsS$1.16m0.51%
SGD 1.8m
Kiam Ho
CEO & Executive Director0.17yrno datano data
Ken Wee Kwek
General Manager of Group Human Resourcesno datano datano data
Siah Lee
Chief Operations Officer of Industrial Packaging Group4.75yrsno datano data
Benedict Lee
Head of Internal Audit4.92yrsno datano data
Swee Gim Yeo
Company Secretaryno datano datano data
Siew Ping Ng
Company Secretaryno datano datano data
Weng Ming Hoh
President of Diesel Engines Unit & China Yuchai International Limited7.25yrsno datano data
Nguang Lim
General Manager of Airwell Air-conditioning Technology (China) Co.no datano datano data

4.8yrs

Average Tenure

59yo

Average Age

Experienced Management: H22's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leng Peck Kwek
Executive Chairman3.5yrsS$1.16m0.51%
SGD 1.8m
Kiam Ho
CEO & Executive Director0.17yrno datano data
Ernest Colin Lee
Lead Independent Director7.67yrsS$134.00k0.011%
SGD 38.0k
Sey Ming Ng
Independent Non-Executive Director3.42yrsS$100.00kno data
Ka Lo Kwong
Non-Executive & Independent Director4.67yrsS$100.00kno data
Chian Khong Tan
Independent Non-Executive Director2.58yrsS$120.00kno data

3.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: H22's board of directors are considered experienced (3.5 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.


Top Shareholders

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$355.213m
  • 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, rigid packaging products, and air-conditioning systems in the Peop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:51
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.