Hong Leong Asia Ltd. (SG:H22)
SGX:H22
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Hong Leong Asia
(SGX:H22)
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Rating:64Neutral
Price Target:
S$3.50
â–²(7.36% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by improving financial performance (notably stronger cash generation) and supportive technical momentum (price above key moving averages with positive MACD). These positives are tempered by structurally thin profitability and limited valuation support from the provided metrics (P/E not meaningful and only a modest dividend yield).
Positive Factors
Strengthened cash generation
Material improvement in operating and free cash flow provides durable financial flexibility. Sustained cash generation supports capex, working capital, debt servicing and optional returns to shareholders, reducing refinancing risk and enabling strategic investments across cycles.
Negative Factors
Structurally thin margins
Persistently low net margins limit the firm's ability to absorb input cost inflation and shrink the cushion for earnings variability. Over the medium term this reduces reinvestment potential and makes returns sensitive to commodity, pricing and efficiency shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened cash generation
Material improvement in operating and free cash flow provides durable financial flexibility. Sustained cash generation supports capex, working capital, debt servicing and optional returns to shareholders, reducing refinancing risk and enabling strategic investments across cycles.
Read all positive factors
Hong Leong Asia (H22) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$2.44B
Dividend Yield2.13%
Average Volume (3M)1.54M
Price to Earnings (P/E)31.1
Beta (1Y)1.26
Revenue Growth25.93%
EPS Growth28.45%
CountrySG
Employees10,306
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.14
Shares Outstanding798,146,240
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$4.72Price Target Upside44.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.2
Revenue Forecast (FY)S$5.96B
Hong Leong Asia Business Overview & Revenue Model
Company Description
As an investment holding entity, Hong Leong Asia Ltd. undertakes the manufacture and commercialization of a diverse array of products, including diesel engines and related automotive components, construction materials, and rigid packaging solution...
How the Company Makes Money
Hong Leong Asia makes money primarily by selling industrial products and services through two main business areas: (1) Building materials: it generates revenue from supplying ready-mixed concrete and related building materials to construction proj...
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
Negative
3.26
Price Trends
3.19
Negative
3.11
Negative
2.75
Positive
Market Momentum
-0.05
Positive
45.15
Neutral
82.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:H22, the sentiment is Negative. The current price of 3.26 is above the 20-day moving average (MA) of 3.18, above the 50-day MA of 3.19, and above the 200-day MA of 2.75, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$655.08M | 8.33 | 9.20% | 4.40% | -8.74% | -6.08% | |
64 Neutral | S$2.44B | 31.14 | 7.29% | 2.13% | 25.93% | 28.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | S$38.47M | 8.26 | 5.36% | 3.97% | 20.48% | -20.60% |
* Consumer Cyclical Sector Average
SG:H22
Hong Leong Asia
3.06
1.77
137.95%
SG:QES
China Sunsine Chemical Holdings Ltd.
0.68
0.16
31.07%
SG:N0Z
Combine Will International Holdings Limited
1.19
0.06
5.31%
Hong Leong Asia Corporate Events
Hong Leong Asia Shareholders Approve Dividend, Board Re-Elections and Share-Issue Mandate at 65th AGM
May 22, 2026
Hong Leong Asia held its 65th annual general meeting in Singapore, where its board, management, auditors and shareholders convened to review the group’s 2025 performance and governance matters. The meeting confirmed that the annual report an...
Hong Leong Asia Unit China Yuchai Files 2025 Form 20-F With U.S. SEC
Apr 30, 2026
Hong Leong Asia has announced that its subsidiary China Yuchai International Limited has filed its annual report for the financial year ended 31 December 2025 on Form 20-F with the U.S. Securities and Exchange Commission. The filing underscores Ch...
Hong Leong Asia Fully Deploys S$201.1 Million Rights Issue Proceeds
Apr 21, 2026
Hong Leong Asia has fully deployed the approximately S$201.1 million in net proceeds raised from its renounceable non-underwritten rights issue launched in 2018. The funds were allocated to repay an acquisition loan, finance plant construction, re...
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.