OTCPK:HLFB.F

Stock Analysis Report

Hong Leong Financial Group Berhad

Executive Summary

Hong Leong Financial Group Berhad, an investment holding company, provides various conventional and Islamic financial products and services to consumer, corporate, and institutional customers.

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:HLFB.F

-1.8%

US Banks

-1.6%

US Market


1 Year Return

n/a

OTCPK:HLFB.F

-16.1%

US Banks

-3.0%

US Market

No trading data on HLFB.F.

No trading data on HLFB.F.


Share holder returns

HLFB.FIndustryMarket
7 Day0%-1.8%-1.6%
30 Day0%-10.1%-5.7%
90 Day0%-5.0%0.2%
1 Yearn/a-13.7%-16.1%-0.8%-3.0%
3 Yearn/a37.9%28.5%38.1%29.1%
5 Yearn/a49.3%33.2%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Hong Leong Financial Group Berhad's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Hong Leong Financial Group Berhad is good value based on earnings compared to the US Banks industry average.

Hong Leong Financial Group Berhad is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Hong Leong Financial Group Berhad is poor value based on expected growth next year.


Price Based on Value of Assets

Hong Leong Financial Group Berhad is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Hong Leong Financial Group Berhad expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hong Leong Financial Group Berhad's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

Hong Leong Financial Group Berhad's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Hong Leong Financial Group Berhad's revenue growth is positive but not above the United States of America market average.

Hong Leong Financial Group Berhad's earnings growth is positive but not above the United States of America market average.

Hong Leong Financial Group Berhad's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Hong Leong Financial Group Berhad is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Hong Leong Financial Group Berhad performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Hong Leong Financial Group Berhad's 1-year earnings growth exceeds its 5-year average (19.4% vs 2.5%)

Hong Leong Financial Group Berhad's earnings growth has not exceeded the US Banks industry average in the past year (19.4% vs 40.1%).


Return on Equity

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


Return on Assets

Hong Leong Financial Group Berhad used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Hong Leong Financial Group Berhad improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Hong Leong Financial Group Berhad'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

Information is not available.

Information is not available.


Financial Institutions Analysis

Hong Leong Financial Group Berhad has an acceptable proportion of non-loan assets held.

Hong Leong Financial Group Berhad has a sufficient allowance for bad loans.

Hong Leong Financial Group Berhad's liabilities are made up of primarily low risk sources of funding.

Hong Leong Financial Group Berhad's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Hong Leong Financial Group Berhad are broadly funded by customer deposits.

Hong Leong Financial Group Berhad has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Hong Leong Financial Group Berhad's current dividend yield, its reliability and sustainability?

2.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hong Leong Financial Group Berhad's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).

Hong Leong Financial Group Berhad's dividend is below the markets top 25% of dividend payers in United States of America (3.75%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Kong Khoon Tan (61yo)

3.3yrs

Tenure

RM11,047,000

Compensation

Mr. Kong Khoon Tan has been Chairman of the Board of Hong Leong Bank (Cambodia) Plc since February 8, 2016 and has been Non-Independent and Non-Executive Director since November 20, 2013. Mr. Tan has been  ...


CEO Compensation Analysis

Kong Khoon's remuneration is lower than average for companies of similar size in United States of America.

Kong Khoon's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

The tenure for the Hong Leong Financial Group Berhad management team is about average.


Board Age and Tenure

7.8yrs

Average Tenure

60yo

Average Age

The tenure for the Hong Leong Financial Group Berhad board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Seong Chew (54yo)

    Group Chief Financial Officer

    • Tenure: 12.5yrs
  • Kong Khoon Tan (61yo)

    President

    • Tenure: 3.3yrs
    • Compensation: RM11.05m
  • Guat Loh (53yo)

    Group MD & CEO of Hong Leong Assurance Berhad

    • Tenure: 0.0yrs
  • Jim Lee (55yo)

    Group MD & CEO of Hong Leong Investment Bank Berhad

    • Tenure: 0.0yrs
  • Domenic Fuda (51yo)

    Group MD & CEO of Hong Leong Bank Berhad

    • Tenure: 3.3yrs
  • Jack Lee

    Company Secretary

    • Tenure: 0.2yrs

Board Members

  • Leng Quek (75yo)

    Chairman

    • Tenure: 10.1yrs
    • Compensation: RM28.00k
  • Kong Khoon Tan (61yo)

    President

    • Tenure: 3.3yrs
    • Compensation: RM11.05m
  • Lean Lim (65yo)

    Non-Executive Independent Director

    • Tenure: 7.8yrs
    • Compensation: RM174.00k
  • Kok Wei Saw (55yo)

    Non-Executive Independent Director

    • Tenure: 7.8yrs
    • Compensation: RM167.00k
  • Ket Leong (54yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Puan Raja Noorma Binti Othman (59yo)

    Independent Non Executive Director

    • Tenure: 0.0yrs

Company Information

Hong Leong Financial Group Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hong Leong Financial Group Berhad
  • Ticker: HLFB.F
  • Exchange: OTCPK
  • Founded: 1968
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: RM21.663b
  • Listing Market Cap: RM5.177b
  • Shares outstanding: 1.14b
  • Website: https://www.hlfg.com.my

Number of Employees


Location

  • Hong Leong Financial Group Berhad
  • Menara Hong Leong
  • Level 30
  • Kuala Lumpur
  • 50490
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLFGKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJan 1992
HLFB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Hong Leong Financial Group Berhad, an investment holding company, provides various conventional and Islamic financial products and services to consumer, corporate, and institutional customers. The company  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/29 00:09
End of Day Share Price2019/02/28 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.