Hong Leong Asia Ltd. (SG:H22)
SGX:H22
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Hong Leong Asia
(SGX:H22)
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Rating:60Neutral
Price Target:
S$3.00
▲(3.09% Upside)
Action:ReiteratedDate:02/26/26
The score is primarily supported by improving financial performance—especially the strong recovery in cash generation and resumed revenue growth. This is tempered by thin profitability and moderate leverage, while technicals indicate near-term softness despite a longer-term uptrend. Valuation is a further constraint given the higher P/E and modest dividend yield.
Positive Factors
Free cash flow recovery
Material restoration of operating and free cash flow provides durable internal funding for capex, debt servicing and shareholder returns. Sustained FCF reduces refinancing needs and improves resilience versus cyclical downturns, supporting strategic investments over the next 2–6 months.
Negative Factors
Thin net margins
Very low net margins leave profits highly exposed to commodity, input-cost or pricing pressure. With limited margin cushion, any adverse cost swing or weaker pricing could quickly erode earnings and cash flow, challenging sustained returns and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow recovery
Material restoration of operating and free cash flow provides durable internal funding for capex, debt servicing and shareholder returns. Sustained FCF reduces refinancing needs and improves resilience versus cyclical downturns, supporting strategic investments over the next 2–6 months.
Read all positive factors
Hong Leong Asia (H22) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$2.18B
Dividend Yield2.13%
Average Volume (3M)1.54M
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth13.38%
EPS Growth12.70%
CountrySG
Employees10,306
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.08
Shares Outstanding748,141,300
10 Day Avg. Volume1,517,790
30 Day Avg. Volume1,543,006
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.65
Price to Sales (P/S)0.35
P/FCF Ratio3.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$4.13Price Target Upside41.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.19
Revenue Forecast (FY)S$5.78B
Hong Leong Asia Business Overview & Revenue Model
Company Description
Hong Leong Asia Ltd., an investment holding company, manufactures and distributes diesel engines and related products, building materials, and rigid packaging products in the People's Republic of China, Singapore, Malaysia, and internationally. It...
How the Company Makes Money
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Hong Leong Asia Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.83B | 5.18B | 4.08B | 4.25B | 3.88B | 4.93B |
| Gross Profit | 745.33M | 947.18M | 684.48M | 730.80M | 681.59M | 729.44M |
| EBITDA | 227.68M | 328.24M | 365.09M | 379.95M | 304.51M | 324.44M |
| Net Income | 94.24M | 112.82M | 64.88M | 87.78M | 54.54M | 60.12M |
Balance Sheet | ||||||
| Total Assets | 6.49B | 6.58B | 5.81B | 5.50B | 5.32B | 5.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 1.60B | 1.35B | 1.23B | 1.01B | 1.22B |
| Total Debt | 835.17M | 805.59M | 920.75M | 930.50M | 915.20M | 943.29M |
| Total Liabilities | 4.06B | 4.00B | 3.36B | 3.13B | 2.96B | 3.46B |
| Stockholders Equity | 1.01B | 1.09B | 1.01B | 922.01M | 902.55M | 956.90M |
Cash Flow | ||||||
| Free Cash Flow | 542.71M | 514.19M | 170.97M | 262.85M | -112.33M | -70.01M |
| Operating Cash Flow | 641.61M | 627.82M | 289.64M | 362.04M | 37.65M | 130.67M |
| Investing Cash Flow | -51.03M | -145.89M | -29.36M | -72.41M | -69.36M | -238.57M |
| Financing Cash Flow | -300.28M | -198.84M | -155.30M | -49.38M | -63.56M | -85.30M |
Hong Leong Asia Technical Analysis
Positive
2.91
Price Trends
3.07
Negative
2.72
Positive
2.44
Positive
Market Momentum
-0.03
Negative
50.97
Neutral
65.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:H22, the sentiment is Positive. The current price of 2.91 is above the 20-day moving average (MA) of 2.84, below the 50-day MA of 3.07, and above the 200-day MA of 2.44, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 65.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:H22.
Hong Leong Asia Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | S$645.38M | 10.36 | 9.20% | 4.40% | -3.11% | 28.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | S$2.18B | ― | 7.29% | 2.13% | 13.38% | 12.70% | |
55 Neutral | S$39.44M | 6.54 | 5.36% | 3.97% | 30.99% | -7.99% |
* Consumer Cyclical Sector Average
SG:H22
Hong Leong Asia
2.91
1.94
198.77%
SG:QES
China Sunsine Chemical Holdings Ltd.
0.67
0.20
41.79%
SG:N0Z
Combine Will International Holdings Limited
1.22
0.33
37.08%
Hong Leong Asia Corporate Events
China Yuchai’s Engine Sales Surge Drives Strong Profit Rebound in 2H 2025
Feb 24, 2026
China Yuchai reported a strong rebound in the second half of 2025, driven by surging demand for its engines in commercial vehicles and off-road applications. The company’s engine sales notably outperformed the broader truck and bus market, u...
China Yuchai to Release 2025 Second-Half and Full-Year Results on February 24, 2026
Feb 10, 2026
China Yuchai International Limited will release its unaudited financial results for the second half and full year of 2025 on February 24, 2026, before U.S. markets open for trading. The announcement is relevant for investors tracking the company&#...
Hong Leong Asia Moves to Spin Off Marine and Genset Unit via Hong Kong Listing
Jan 27, 2026
Hong Leong Asia has announced that Guangxi Yuchai Marine and Genset Power Co., Ltd. (MGP), an indirect and principal subsidiary held through China Yuchai International, has submitted an application for a listing of its shares on the Mainboard of t...
China Yuchai Secures Control Stake in Fuel-Injection Specialist NYDK to Bolster Powertrain Supply Chain
Jan 12, 2026
China Yuchai International’s subsidiary Guangxi Yuchai Machinery has acquired a 27.97% equity stake, or 83,918,495 shares, in Nanyue Diankong (Hengyang) Industrial Technology for about RMB 176.2 million in cash, making Yuchai the second-larg...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.