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S41

Hong Leong FinanceSGX:S41 Stock Report

Last Price

S$2.41

Market Cap

S$1.1b

7D

0%

1Y

-0.8%

Updated

21 Jan, 2022

Data

Company Financials
S41 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends2/6

S41 Stock Overview

Hong Leong Finance Limited provides various financial services for business enterprises and retail customers in Singapore.

Price History & Performance

Summary of all time highs, changes and price drops for Hong Leong Finance
Historical stock prices
Current Share PriceS$2.41
52 Week HighS$2.55
52 Week LowS$2.33
Beta0.56
1 Month Change0%
3 Month Change-1.23%
1 Year Change-0.82%
3 Year Change-8.37%
5 Year Change9.55%
Change since IPO65.69%

Recent News & Updates

Shareholder Returns

S41SG Consumer FinanceSG Market
7D0%-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

Is S41's price volatile compared to industry and market?
S41 volatility
S41 Average Weekly Movement1.1%
Consumer Finance Industry Average Movement5.8%
Market Average Movement4.6%
10% most volatile stocks in SG Market12.1%
10% least volatile stocks in SG Market2.1%

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

FoundedEmployeesCEOWebsite
1961617Leng Beng Kwekhttps://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

How do Hong Leong Finance's earnings and revenue compare to its market cap?
S41 fundamental statistics
Market CapS$1.09b
Earnings (TTM)S$72.08m
Revenue (TTM)S$167.83m

15.0x

P/E Ratio

6.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
S41 income statement (TTM)
RevenueS$167.83m
Cost of RevenueS$0
Gross ProfitS$167.83m
ExpensesS$95.76m
EarningsS$72.08m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.16
Gross Margin100.00%
Net Profit Margin42.94%
Debt/Equity Ratio2.8%

How did S41 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

57%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 11:02
End of Day Share Price2022/01/21 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.