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
▲(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
A meaningful recovery in operating and free cash flow across 2024–2025 materially increases financial flexibility. Sustained positive FCF supports reinvestment in plants, maintenance capex, working-capital cushions, potential deleveraging or shareholder returns, improving resilience over multiple quarters.
Negative Factors
Structurally thin profitability
Very low net margins leave limited buffer against input-cost inflation, pricing pressure or operating disruptions. Even with rising revenue, thin margins constrain retained earnings, slow equity accumulation, and make long-term returns highly sensitive to modest adverse cost or volume shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened cash generation
A meaningful recovery in operating and free cash flow across 2024–2025 materially increases financial flexibility. Sustained positive FCF supports reinvestment in plants, maintenance capex, working-capital cushions, potential deleveraging or shareholder returns, improving resilience over multiple quarters.
Read all positive factors
Hong Leong Asia (H22) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$2.75B
Dividend Yield2.13%
Average Volume (3M)1.54M
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth25.93%
EPS Growth28.45%
CountrySG
Employees10,306
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.14
Shares Outstanding798,141,300
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$4.62Price Target Upside41.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.2
Revenue Forecast (FY)S$5.95B
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
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
Positive
3.26
Price Trends
3.06
Positive
3.01
Positive
2.66
Positive
Market Momentum
0.10
Positive
56.57
Neutral
24.59
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 3.26 is below the 20-day moving average (MA) of 3.27, above the 50-day MA of 3.06, and above the 200-day MA of 2.66, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 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% | -8.74% | -6.08% | |
64 Neutral | S$2.75B | ― | 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$38.79M | 6.54 | 5.36% | 3.97% | 20.48% | -20.60% |
* Consumer Cyclical Sector Average
SG:H22
Hong Leong Asia
3.45
2.30
200.26%
SG:QES
China Sunsine Chemical Holdings Ltd.
0.67
0.13
23.38%
SG:N0Z
Combine Will International Holdings Limited
1.20
0.07
6.19%
Hong Leong Asia Corporate Events
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...
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...
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.