| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 2/6 |
S41 Stock Overview
Hong Leong Finance Limited provides various financial services for business enterprises and retail customers in Singapore.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | S$2.41 |
| 52 Week High | S$2.55 |
| 52 Week Low | S$2.33 |
| Beta | 0.56 |
| 1 Month Change | 0% |
| 3 Month Change | -1.23% |
| 1 Year Change | -0.82% |
| 3 Year Change | -8.37% |
| 5 Year Change | 9.55% |
| Change since IPO | 65.69% |
Recent News & Updates
Shareholder Returns
| S41 | SG Consumer Finance | SG Market | |
|---|---|---|---|
| 7D | 0% | -2.6% | 0.7% |
| 1Y | -0.8% | 22.1% | 3.9% |
Return vs Industry: S41 underperformed the SG Consumer Finance industry which returned 22.1% over the past year.
Return vs Market: S41 underperformed the SG Market which returned 3.9% over the past year.
Price Volatility
| S41 volatility | |
|---|---|
| S41 Average Weekly Movement | 1.1% |
| Consumer Finance Industry Average Movement | 5.8% |
| Market Average Movement | 4.6% |
| 10% most volatile stocks in SG Market | 12.1% |
| 10% least volatile stocks in SG Market | 2.1% |
Stable Share Price: S41 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 1% a week.
Volatility Over Time: S41's weekly volatility (1%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1961 | 617 | Leng Beng Kwek | https://www.hlf.com.sg |
Hong Leong Finance Limited provides various financial services for business enterprises and retail customers in Singapore. It accepts savings and business current accounts, as well as fixed deposits. The company also offers new and used car, home, and private housing loans, as well as mortgage equity and share financing services.
Hong Leong Finance Fundamentals Summary
| S41 fundamental statistics | |
|---|---|
| Market Cap | S$1.09b |
| Earnings (TTM) | S$72.08m |
| Revenue (TTM) | S$167.83m |
15.0x
P/E Ratio6.4x
P/S RatioIs S41 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| S41 income statement (TTM) | |
|---|---|
| Revenue | S$167.83m |
| Cost of Revenue | S$0 |
| Gross Profit | S$167.83m |
| Expenses | S$95.76m |
| Earnings | S$72.08m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.16 |
| Gross Margin | 100.00% |
| Net Profit Margin | 42.94% |
| Debt/Equity Ratio | 2.8% |
How did S41 perform over the long term?
See historical performance and comparisonDividends
3.8%
Current Dividend Yield57%
Payout RatioValuation
Is Hong Leong Finance undervalued compared to its fair value and its price relative to the market?
27.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: S41 (SGD2.41) is trading below our estimate of fair value (SGD3.34)
Significantly Below Fair Value: S41 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: S41 is good value based on its PE Ratio (15x) compared to the Asian Consumer Finance industry average (16.1x).
PE vs Market: S41 is poor value based on its PE Ratio (15x) compared to the SG market (13.4x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate S41's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: S41 is good value based on its PB Ratio (0.6x) compared to the XA Consumer Finance industry average (1.1x).
Future Growth
How is Hong Leong Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
26.5%
Forecasted Diversified Financials 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 Finance 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.
Past Performance
How has Hong Leong Finance performed over the past 5 years?
3.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: S41 has high quality earnings.
Growing Profit Margin: S41's current net profit margins (42.9%) are lower than last year (47.2%).
Past Earnings Growth Analysis
Earnings Trend: S41's earnings have grown by 3.9% per year over the past 5 years.
Accelerating Growth: S41's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: S41 had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Consumer Finance industry average (17.6%).
Return on Equity
High ROE: S41's Return on Equity (3.7%) is considered low.
Financial Health
How is Hong Leong Finance's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: S41's Assets to Equity ratio (6.7x) is low.
Allowance for Bad Loans: S41 has a low allowance for bad loans (26%).
Low Risk Liabilities: 98% of S41's liabilities are made up of primarily low risk sources of funding.
Loan Level: S41 has an appropriate level of Loans to Assets ratio (82%).
Low Risk Deposits: S41's Loans to Deposits ratio (98%) is appropriate.
Level of Bad Loans: S41 has an appropriate level of bad loans (0.9%).
Dividend
What is Hong Leong Finance current dividend yield, its reliability and sustainability?
3.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: S41's dividend (3.84%) is higher than the bottom 25% of dividend payers in the SG market (2%).
High Dividend: S41's dividend (3.84%) is low compared to the top 25% of dividend payers in the SG market (5.43%).
Stability and Growth of Payments
Stable Dividend: S41's dividend payments have been volatile in the past 10 years.
Growing Dividend: S41's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.4%), S41's dividend payments are 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?
4.6yrs
Average management tenure
CEO
Leng Beng Kwek (80 yo)
42.83yrs
Tenure
S$2,298,000
Compensation
Mr. Leng Beng Kwek has been Managing Director of Target Realty Ltd. since February 1, 1979 and has also been its Chairman since November 28, 1984. Mr. Kwek served as Managing Director and Chairman of City...
CEO Compensation Analysis
Compensation vs Market: Leng Beng's total compensation ($USD1.71M) is above average for companies of similar size in the SG market ($USD653.72K).
Compensation vs Earnings: Leng Beng's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: S41's management team is considered experienced (4.6 years average tenure).
Board Members
Experienced Board: S41's board of directors are considered experienced (3.9 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 Finance Limited's employee growth, exchange listings and data sources
Key Information
- Name: Hong Leong Finance Limited
- Ticker: S41
- Exchange: SGX
- Founded: 1961
- Industry: Consumer Finance
- Sector: Diversified Financials
- Implied Market Cap: S$1.088b
- Shares outstanding: 447.81m
- Website: https://www.hlf.com.sg
Number of Employees
Location
- Hong Leong Finance Limited
- No. 01-05 Hong Leong Building
- 16 Raffles Quay
- Singapore
- 48581
- Singapore
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 11:02 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.