Analyst Adrian Loh of UOB Kay Hian maintained a Buy rating on Hong Leong Asia, with a price target of S$2.63.
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Adrian Loh has given his Buy rating due to a combination of factors influencing Hong Leong Asia’s performance. The company reported a significant increase in revenue and profit for the first half of 2025, driven primarily by strong sales in its diesel engine segment through China Yuchai. This segment saw a substantial rise in unit sales and market share in China, contributing to a notable increase in net profit.
Additionally, Hong Leong Asia’s financial position strengthened with an improved net cash position and robust free cash flow, suggesting potential for higher dividends in the future. Despite a temporary weakness in the building materials segment, a recovery is anticipated in the latter half of the year. These positive financial metrics and growth prospects underpin Adrian Loh’s confidence in maintaining a Buy rating and raising the target price to S$2.63.
In another report released today, DBS also maintained a Buy rating on the stock with a S$2.80 price target.
H22’s price has also changed dramatically for the past six months – from S$0.955 to S$1.950, which is a 104.19% increase.