Want to see SG:H22 full AI Analyst Report?
Top Page
Hong Leong Asia
(SGX:H22)
Select Model
Select Model
Rating:57Neutral
Price Target:
S$3.00
▲(2.04% Upside)
Action:Reiterated
Date:07/03/26
The score is primarily supported by improving financial performance, especially materially stronger operating and free cash flow. This is tempered by weak technical trends (price below key moving averages with negative MACD) and a relatively high P/E with only a modest dividend yield.
Positive Factors
Revenue Recovery
The 2025 revenue recovery indicates improving demand and volumes across the operating base. Sustained activity in industrial products and building materials could support a stronger revenue foundation over the next several months.
Negative Factors
Thin Profit Margins
Low net margins leave limited protection against increases in cement, energy, logistics and component costs. Even modest pricing pressure or weaker plant utilization could therefore reduce earnings disproportionately.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The 2025 revenue recovery indicates improving demand and volumes across the operating base. Sustained activity in industrial products and building materials could support a stronger revenue foundation over the next several months.
Read all positive factors
Hong Leong Asia (H22) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$2.55B
Dividend Yield1.68%
Average Volume (3M)1.54M
Price to Earnings (P/E)15.2
Beta (1Y)1.44
Revenue Growth17.08%
EPS Growth55.87%
CountrySG
Employees10,522
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.16
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$4.49Price Target Upside52.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.21
Revenue Forecast (FY)S$6.05B
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 building materials, supported by after-sales services and project-linked supply contracts.
1) Industrial products (diesel engines and related solutions)
- Product sales: Rev...
Hong Leong Asia Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.18B | 4.08B | 4.25B | 3.88B | 4.93B |
| Gross Profit | 947.18M | 684.48M | 730.80M | 681.59M | 729.44M |
| EBITDA | 469.83M | 365.09M | 379.95M | 304.51M | 324.44M |
| Net Income | 112.82M | 64.88M | 87.78M | 54.54M | 60.12M |
Balance Sheet | |||||
| Total Assets | 6.58B | 5.81B | 5.50B | 5.32B | 5.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 1.35B | 1.23B | 1.01B | 1.22B |
| Total Debt | 805.59M | 920.75M | 930.50M | 915.20M | 943.29M |
| Total Liabilities | 4.00B | 3.36B | 3.13B | 2.96B | 3.46B |
| Stockholders Equity | 1.09B | 1.01B | 922.01M | 902.55M | 956.90M |
Cash Flow | |||||
| Free Cash Flow | 514.19M | 170.97M | 262.85M | -112.33M | -70.01M |
| Operating Cash Flow | 627.82M | 289.64M | 362.04M | 37.65M | 130.67M |
| Investing Cash Flow | -145.89M | -29.36M | -72.41M | -69.36M | -238.57M |
| Financing Cash Flow | -198.84M | -155.30M | -49.38M | -63.56M | -85.30M |
Hong Leong Asia Technical Analysis
Neutral
2.94
Price Trends
2.89
Positive
3.02
Negative
2.84
Positive
Market Momentum
0.08
Negative
49.10
Neutral
41.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:H22, the sentiment is Neutral. The current price of 2.94 is below the 20-day moving average (MA) of 3.02, above the 50-day MA of 2.89, and above the 200-day MA of 2.84, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 41.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | S$1.37B | 19.83 | 9.38% | 2.52% | 26.02% | -77.59% | |
65 Neutral | S$463.69M | 9.96 | 5.59% | 2.50% | 24.46% | 4.83% | |
63 Neutral | S$694.13M | 22.68 | 3.38% | 0.99% | 0.28% | -10.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | S$2.55B | 15.17 | 14.16% | 1.70% | 17.08% | 55.87% |
* Consumer Cyclical Sector Average
SG:H22
Hong Leong Asia
2.98
0.62
26.49%
SG:B58
Banyan Tree Holdings
0.54
-0.05
-8.63%
SG:AVX
HL Global Enterprises Limited
0.37
0.07
23.33%
SG:H07
Stamford Land Corporation Ltd
0.47
0.05
12.05%
SG:H15
Hotel Properties Limited
4.69
-0.56
-10.73%
SG:OU8
Centurion Corporation Limited
1.59
0.04
2.51%
Hong Leong Asia Corporate Events
China Yuchai Rides Heavy‑Duty Engine Demand to Strong First‑Half 2026
Aug 7, 2026
China Yuchai International reported a strong first half of 2026, with revenue rising 13.9% year on year to RMB 14.7 billion and engine sales up 10.9% to 277,684 units, driven by robust demand in truck, marine and power generation markets. Heavy...
Hong Leong Asia Bolsters Audit and Risk Oversight With New Committee Appointment
Jul 31, 2026
Hong Leong Asia has strengthened its governance framework with the appointment of independent director Ng Chee Khern to its Audit and Risk Committee, effective 3 August 2026. His inclusion expands the committee’s independent oversight alongs...
China Yuchai to unveil first-half 2026 results on 7 August
Jul 24, 2026
China Yuchai International will release its unaudited financial results for the first half of 2026 on 7 August, before U.S. market hours, as it continues to engage investors on its performance. Management, including the president and chief financi...
Hong Leong Asia details use of share placement proceeds for debt repayment and growth
Jul 24, 2026
Hong Leong Asia has provided an update on the deployment of net proceeds from its recent placement of 50 million new ordinary shares, confirming that about S$40.2 million has been used to repay bank borrowings and related interest tied to the acqu...
China Yuchai International Declares US$0.87 Cash Dividend for FY2025
Jul 2, 2026
China Yuchai International, listed on the NYSE, operates through its principal subsidiary Guangxi Yuchai Machinery Company Limited, one of China’s leading powertrain solutions manufacturers. Founded in 1951, Yuchai designs, manufactures and ...
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...
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.