Hong Leong Asia (H22) AI Stock Analysis

• Market Cap: S$1.91B
• Dividend Yield: 1.96%
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.02
• Revenue Growth: 13.38%
• EPS Growth: 12.70%
• Country: SG
• Employees: 10,306
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Auto - Manufacturers
• EPS (TTM): 0.07
• Shares Outstanding: 748,141,300
• 10 Day Avg. Volume: 3,726,900
• 30 Day Avg. Volume: 2,295,723
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$2.72
• Price Target Upside: 6.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: S$2.00 ▼(-21.57% Downside)

The overall score is primarily driven by solid financial performance and strong technical indicators, suggesting stability and positive market sentiment. However, challenges in profitability and revenue growth weigh slightly against the stock's potential. Valuation metrics are fair, supporting a balanced investment thesis.

Positive Factors

Financial Performance

Hong Leong Asia posted strong 2024 results with PATMI growing 35.3% yoy, driven by its two main segments.

Market Demand

Increased HDB projects and upcoming infrastructure projects such as the development of Changi Airport Terminal 5 are expected to boost demand in the near to medium term.

Net Cash Position

The company’s net cash position expanded, indicating financial strength and potential for a higher final dividend.

Negative Factors

Market Sentiment

Mega infrastructure projects in Malaysia such as the Mass Rapid Transit Phase 3 and Pan Borneo Sabah Phase 1 are expected to help drive market sentiment.

Segment Performance

The building materials segment was weaker, but recovery is expected.

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. Its Diesel Engines segment offers diesel engines and automobile spare parts. The company's Building Materials segment manufactures and supplies cement, pre-cast concrete elements, ready-mix concrete, and quarry products for public housing construction. The Rigid Packaging segment provides plastic packaging related products and container components. It is also involved in hospitality and property development activities. The company was founded in 1941 and is headquartered in Singapore. Hong Leong Asia Ltd. is a subsidiary of Hong Leong Corporation Holdings Pte Ltd.

How the Company Makes Money

Hong Leong Asia generates revenue primarily through the sale of diesel engines and related components, which are used in a variety of industrial applications. The building materials segment contributes to its earnings by supplying construction products such as ready-mixed concrete and precast concrete products, which are in demand for infrastructure and real estate development projects. Additionally, the company earns income from its consumer products division, which distributes and manufactures a range of household appliances and goods. Strategic partnerships and collaborations with businesses across Asia further enhance its market reach and profitability.

Hong Leong Asia Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	Dec 2022	Dec 2021	Dec 2020	Dec 2019	Dec 2018
Income Statement
Total Revenue	―	―	―	―	―
Gross Profit	681.59M	729.44M	719.45M	720.75M	700.61M
EBITDA	306.57M	306.90M	354.00M	350.90M	346.67M
Net Income	54.54M	60.12M	46.74M	34.44M	-6.02M
Balance Sheet
Total Assets	5.32B	5.99B	5.86B	5.12B	4.82B
Cash, Cash Equivalents and Short-Term Investments	―	―	―	―	―
Total Debt	915.20M	943.29M	838.39M	784.31M	774.97M
Total Liabilities	2.96B	3.46B	3.44B	2.86B	2.56B
Stockholders Equity	―	―	―	―	―
Cash Flow
Free Cash Flow	-112.33M	-70.01M	63.66M	175.08M	-52.26M
Operating Cash Flow	37.65M	130.67M	306.07M	441.36M	85.48M
Investing Cash Flow	―	―	―	―	―
Financing Cash Flow	―	―	―	―	―

Hong Leong Asia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.55 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 1.80, and above the 200-day MA of 1.19, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 83.74 is Negative, neither overbought nor oversold. The STOCH value of 89.87 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QES	79 Outperform	S$713.31M	8.00	11.64%	2.70%	-3.11%	28.89%
H22	76 Outperform	S$1.91B	20.48	9.55%	1.96%	13.38%	12.70%
N0Z	73 Outperform	S$40.09M	5.82	5.45%	4.03%	30.99%	-7.99%
Sector *	61 Neutral	$17.60B	14.14	-5.40%	3.04%	1.40%	-15.06%

Hong Leong Asia Corporate Events

China Yuchai to Announce 2025 First-Half Financial Results

China Yuchai International Limited announced it will release its unaudited financial results for the first half of 2025 on August 8, 2025, before the market opens. An earnings call and audio webcast will be held on the same day, hosted by the company’s President and CFO, to discuss the results and engage with analysts and investors. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (SG:H22) stock is a Buy with a S$1.60 price target. To see the full list of analyst forecasts on Hong Leong Asia stock, see the SG:H22 Stock Forecast page.

Hong Leong Asia’s Subsidiary CYI Launches Equity Incentive Plan

Hong Leong Asia Ltd.’s subsidiary, China Yuchai International Limited, has announced the adoption of a 2025 Equity Incentive Plan aimed at incentivizing and retaining key employees and directors. This plan, approved during CYI’s annual general meeting, is designed to enhance employee loyalty and motivation by offering equity participation, which could positively impact the company’s operational success and stakeholder value.

The most recent analyst rating on (SG:H22) stock is a Buy with a S$1.60 price target. To see the full list of analyst forecasts on Hong Leong Asia stock, see the SG:H22 Stock Forecast page.

China Yuchai Declares US$0.53 Dividend for FY2024

China Yuchai International Limited has announced a cash dividend of US$0.53 per ordinary share for the fiscal year 2024, to be paid on July 7, 2025. This decision reflects the company’s robust financial performance and commitment to delivering shareholder value, potentially strengthening its market position and investor confidence.

The most recent analyst rating on (SG:H22) stock is a Buy with a S$1.60 price target. To see the full list of analyst forecasts on Hong Leong Asia stock, see the SG:H22 Stock Forecast page.

Hong Leong Asia Ltd. Holds 64th Annual General Meeting

Hong Leong Asia Ltd. held its Sixty-Fourth Annual General Meeting at M Hotel Singapore, attended by its Board of Directors, shareholders, and auditors from Ernst & Young LLP. The meeting focused on the company’s governance and operational matters, with discussions led by key executives including Executive Chairman Mr. Kwek Leng Peck and CEO Mr. Stephen Ho Kiam Kong. The AGM provided a platform for stakeholders to engage with the company’s leadership, ensuring transparency and accountability in its corporate practices.

The most recent analyst rating on (SG:H22) stock is a Buy with a S$1.60 price target. To see the full list of analyst forecasts on Hong Leong Asia stock, see the SG:H22 Stock Forecast page.

Hong Leong Asia’s Sky Cloud Completes Phase One of Equity Incentive Scheme

Hong Leong Asia Ltd. announced the completion of Phase One of its Equity Incentive Scheme by its Chinese subsidiary, Sky Cloud. This phase involved awarding a 17.28% interest in Sky Cloud’s enlarged registered capital to participants, following a valuation of RMB7.70 million. The move is part of a broader strategy to incentivize and align stakeholders with the company’s growth objectives.