Hong Leong Finance
Market Cap
S$1.1b
Last Updated
2021/01/26 11:07 UTC
Data Sources
Company Financials
Executive Summary
Hong Leong Finance Limited provides various financial services for business enterprises and retail customers in Singapore. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet, good value and pays a dividend.
Share Price & News
How has Hong Leong Finance's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: S41 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: S41's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
-0.4%
S41
1.6%
SG Consumer Finance
-0.2%
SG Market
1 Year Return
-8.0%
S41
4.4%
SG Consumer Finance
-10.2%
SG Market
Return vs Industry: S41 underperformed the SG Consumer Finance industry which returned 4.4% over the past year.
Return vs Market: S41 exceeded the SG Market which returned -10.2% over the past year.
Shareholder returns
| S41 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | 1.6% | -0.2% |
| 30 Day | 0.8% | 2.3% | 5.7% |
| 90 Day | 5.7% | 25.0% | 17.8% |
| 1 Year | -2.8%-8.0% | 8.5%4.4% | -5.3%-10.2% |
| 3 Year | 5.0%-10.8% | 27.8%17.3% | -11.2%-22.0% |
| 5 Year | 42.9%12.2% | 80.7%60.7% | 24.9%2.0% |
Long-Term Price Volatility Vs. Market
How volatile is Hong Leong Finance's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Could Hong Leong Finance Limited (SGX:S41) Have The Makings Of Another Dividend Aristocrat?2 months ago | Simply Wall St
Hong Leong Finance (SGX:S41) Share Prices Have Dropped 11% In The Last Three Years2 months ago | Simply Wall St
How Is Hong Leong Finance's (SGX:S41) CEO Compensated?Valuation
Is Hong Leong Finance undervalued compared to its fair value and its price relative to the market?
16.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: S41 (SGD2.4) is trading below our estimate of fair value (SGD2.87)
Significantly Below Fair Value: S41 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: S41 is good value based on its PE Ratio (12.3x) compared to the XA Consumer Finance industry average (13x).
PE vs Market: S41 is good value based on its PE Ratio (12.3x) compared to the SG market (15.4x).
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 (0.8x).
Next Steps
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.
Next Steps
- Examine whether Hong Leong Finance is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Hong Leong Finance competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Diversified Financials industry.
Past Performance
How has Hong Leong Finance performed over the past 5 years?
12.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: S41 has high quality earnings.
Growing Profit Margin: S41's current net profit margins (47.2%) are lower than last year (50%).
Past Earnings Growth Analysis
Earnings Trend: S41's earnings have grown by 12.4% 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 (-24.5%) over the past year, making it difficult to compare to the Consumer Finance industry average (-11.6%).
Return on Equity
High ROE: S41's Return on Equity (4.6%) is considered low.
Next Steps
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 (7.3x) is low.
Allowance for Bad Loans: S41 has a low allowance for bad loans (21%).
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 (80%).
Low Risk Deposits: S41's Loans to Deposits ratio (95%) is appropriate.
Level of Bad Loans: S41 has an appropriate level of bad loans (0.8%).
Next Steps
Dividend
What is Hong Leong Finance current dividend yield, its reliability and sustainability?
6.25%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: S41's dividend (6.25%) is higher than the bottom 25% of dividend payers in the SG market (2.1%).
High Dividend: S41's dividend (6.25%) is in the top 25% of dividend payers in the SG market (4.96%)
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 increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (69.4%), 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?
3.6yrs
Average management tenure
CEO
Leng Beng Kwek (79 yo)
41.83yrs
Tenure
S$2,668,000
Compensation
Mr. Leng Beng Kwek has been Managing Director of Target Realty Ltd. since February 1, 1979 and has also been its Chairman since November 28, 1984. Mr. Kwek served as Managing Director and Chairman of City ...
CEO Compensation Analysis
Compensation vs Market: Leng Beng's total compensation ($USD2.01M) is above average for companies of similar size in the SG market ($USD677.79K).
Compensation vs Earnings: Leng Beng's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & MD | 41.83yrs | S$2.67m | 1.84% SGD 20.0m | |
| President | 4.25yrs | no data | no data | |
| Chief Financial Officer | 2.92yrs | no data | no data | |
| Senior Vice President of Operations | no data | no data | no data | |
| VP & Head of Corporate Finance | no data | no data | no data | |
| Senior VP of Human Resources | no data | no data | no data | |
| Senior VP of Risk Management and Credit Control | no data | no data | no data | |
| Senior VP of Corporate & Consumer Business | no data | no data | no data | |
| Senior VP of Corporate & Consumer Business | no data | no data | no data | |
| Company Secretary | no data | no data | no data | |
| Company Secretary | 2.33yrs | no data | no data |
3.6yrs
Average Tenure
Experienced Management: S41's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & MD | 41.83yrs | S$2.67m | 1.84% SGD 20.0m | |
| Non-Executive & Non-Independent Director | no data | S$138.00k | 0.12% SGD 1.3m | |
| Non-Executive & Independent Director | 16.75yrs | S$271.00k | no data | |
| Non-Executive & Independent Director | 20.5yrs | S$75.00k | no data | |
| Non-Executive & Non-Independent Director | 19.33yrs | S$75.00k | no data | |
| Non-Executive & Non-Independent Director | 4.25yrs | S$119.00k | 0.11% SGD 1.1m | |
| Non-Executive & Independent Director | 8.83yrs | S$137.00k | no data | |
| Lead Independent Director | 10.33yrs | S$167.00k | no data | |
| Non-Executive & Independent Director | 10.33yrs | S$156.00k | no data | |
| Non-Executive & Independent Director | 1.58yrs | S$87.00k | no data | |
| Non-Executive & Independent Director | 1.58yrs | S$44.00k | no data | |
| Non-Executive & Independent Director | 1.58yrs | S$76.00k | no data |
10.3yrs
Average Tenure
65yo
Average Age
Experienced Board: S41's board of directors are seasoned and experienced ( 10.3 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 company bio, 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
- Market Cap: S$1.088b
- Shares outstanding: 447.56m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| S41 | SGX (Singapore Exchange) | Yes | Ordinary Shares | SG | SGD | Jan 1992 |
Biography
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 c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 11:07 |
| End of Day Share Price | 2021/01/26 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.