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Hong Leong Asia
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Matex Intl coming back
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Iceycoke
Senior |
03-Mar-2026 17:26
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Maybe. We see a W? | ||||
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msksmsks
Supreme |
03-Mar-2026 13:59
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Will it go down below $3 again ?? |
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Joelton
Supreme |
02-Mar-2026 12:01
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Analysts upgrade target prices as Hong Leong Asia powers ahead Hong Leong Asia closed out a strong FY2025 with the second half in the year seeing &ldquo continued strength&rdquo . Group revenue climbed 22% y-o-y to $5.18 billion. The group&rsquo s net cash nearly doubled to $845 million from FY2024&rsquo s $478 million. Based on outstanding shares of 748.14 million as at Feb 27, this translates to net cash of about $1.13 per share. The board has proposed a final dividend of 3 cents per share, bringing its FY2025 total dividend to 5 cents per share, 25% higher y-o-y. OCBC and DBS lift target prices Analysts from DBS Group Research and OCBC Investment Research are keeping their &ldquo buy&rdquo calls with higher target prices after Hong Leong Asia&rsquo s full-year earnings stood ahead of expectations. DBS&rsquo s Dale Lai has lifted his target price to $3.90 from $2.80 previously, while OCBC&rsquo s Ada Lim increased her fair value estimate to $4.20 from $3.50 before. &ldquo At the current price of $3 per share, Hong Leong Asia is trading at forward P/E ratio of 16 times, which is attractive given that the group is on the cusp of an earnings upswing, generating a return on equity (ROE) of close to [around] 13%,&rdquo Lai writes. Following the group&rsquo s earnings beat, Lai forecasts a three-year earnings compound annual growth rate (CAGR) of 15% from FY2025 to FY2028 on the back of higher deliveries across its business segments, particularly China Yuchai and its building materials arm. &ldquo We expect the group&rsquo s earnings to hit a record high, driving ROE close to 13% or more,&rdquo he says. The analyst now predicts Hong Leong Asia&rsquo s FY2026 and FY2027 net profit to come in at $143 million and $161.7 million respectively. Lim of OCBC has raised her FY2026 and FY2027 earnings per share (EPS) estimates by 21% and 27% to 19.1 cents and 21.8 cents or patmi of $144 million and $165 million respectively. She also sees potential for the group to further enhance shareholder returns by either acquiring synergistic and accretive businesses or by increasing dividend payouts, backed by a healthy balance sheet and net cash position. Separately, CGS International&rsquo s Natalie Ong and Then Wan Lin have reiterated an &ldquo add&rdquo call on China Yuchai even though the company&rsquo s core patmi of RMB537 million ($99.0 million) missed their estimates at 89% of their full-year forecast due to higher-than-forecast tax rate and expenses. However, Ong and Then remain bullish given China Yuchai&rsquo s recent domestic market share gains and increasing indirect exports. The analysts have maintained their target price of US$65 ($82.20). Higher net cash, higher dividends? When asked about the prospect of higher dividends, Josephine Lee, group CFO, pointed out that the group has increased its dividend payout ratio since 2021. At 5 cents per share, the payout ratio now stands at 30% to 35%, which is a level that the group is &ldquo comfortable&rdquo with, as it needs to balance this against capital expenditure (capex) requirements. Despite the stronger net cash position, Lee says the group remains mindful of working capital needs and believes it is &ldquo prudent&rdquo to maintain dividends at its current payout ratio. &ldquo The dividend that we pay out needs to be supported by dividend repatriation from China and in Malaysia. China, as you know, would have heavy investments in R& D (research and development) as well and so forth,&rdquo she says. Capex will remain focused on China and cement plant operations in Malaysia. Capex for China Yuchai will depend on the type of projects and R& D initiatives it is looking to embark on. However, she shares that the run rate for capex will be higher for the spin-off. In Malaysia, the group is looking to invest up to RM200 million over the next two years. &ldquo Typically, China doesn&rsquo t take on debt. They can finance based on operating cashflow,&rdquo says Lee. When pressed, Lee shares that the group&rsquo s net cash is split across its businesses. As China Yuchai is the largest contributor, most of the group&rsquo s net cash sits in China and cannot be used for M& As outside of the country. Should Hong Leong Asia be exploring new M& A opportunities abroad, the group will have to raise funds to finance such deals. Powertrain solutions to be main earnings catalysts Overall, Lai and Lim agree that Hong Leong Asia&rsquo s powertrain solutions unit will be the main earnings catalyst. &ldquo The powertrain solutions division has been reporting strong growth in the recent years, with revenues growing by more than 40% in FY2025,&rdquo Lai points out. &ldquo China Yuchai has also been growing its market share in China, and this is attributed to the unit' s ongoing R& D eff orts to improve its products and consistently introduce low emission solutions,&rdquo he adds. The potential spin-off of China Yuchai&rsquo s marine and generator subsidiary will be another value unlocking initiative that will power the next phase of growth, Lai continues. He similarly expects the powertrain solutions division to &ldquo power ahead&rdquo on burgeoning demand for gensets, including data centre generator engines and new energy powertrains. &ldquo We' ve been sharing that there' s been good growth coming from the exporters, Chinese brands of vehicles, be it buses, trucks or industrial machinery exporting overseas, and that' s been growing close to 50% the last few years and it' s now almost a quarter of overall volumes,&rdquo says Patrick Yau, head of Hong Leong Asia&rsquo s transformation office. He adds that the group is now seeing some level of growth from the domestic side. &ldquo The domestic recovery is adding to what has actually been a key growth rather than the last few years, which is exports.&rdquo According to Frost & Sullivan data cited in China Yuchai' s A1 filing on the Stock Exchange of Hong Kong (HKEX), the powergen engine market in China was valued at RMB14.7 billion in 2024 and is projected to grow at a CAGR of 18.9% to RMB41.5 billion by 2030, driven by demand from data centres and distributed power stations serving large industrial parks nationwide. Group CEO Stephen Ho says China Yuchai, the largest player in China for power generator engines, is growing at a double-digit rate that is well ahead of China' s broader GDP growth. " We are growing at 41.5%. That point is being missed somewhat by the market," he says. With the potential HKEX listing of its generator subsidiary on the horizon and strong order books across both its powertrain and building materials divisions, the group is looking ahead to its next phase of growth in 2030. By then, it aims to strengthen its market leadership, build a resilient and high-performance business portfolio, and fully capitalise on its talent pool. Shares in Hong Leong Asia closed 17 cents higher or 5.56% up at $3.23 on Feb 27. |
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Iceycoke
Senior |
27-Feb-2026 17:43
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I am greedy af. I am aiming $8 by 2028! I can wait. | ||||
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Ltinvestor
Member |
27-Feb-2026 13:54
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Earnings beat propelled by powertrain solutions Investment Overview Maintain BUY with higher TP of SGD3.90 (vs. SGD2.80 previously). We reiterate our BUY recommendation for Hong Leong Asia (HLA) with a TP of SGD3.90. HLA is a diversified industrial conglomerate with two key business segments: (i) Powertrain solutions, where it designs, manufactures, and sells heavy-to-light duty engines through its NYSE-listed subsidiary China Yuchai and (ii) building materials for the regional construction industry. Trading at attractive valuations. Our target price of SGD3.90/share is based on a sum-of-the parts valuation (SOTP) methodology: (i) 15x P/E for its effective stake in China Yuchai International Holdings (Yuchai), (ii) 12x P/E for its building materials division, (iii) market value for its c.20% stake in BRC Asia Limited, and (iv) strong net-cash position. At the current price of SGD3.00/share, HLA is trading at a forward P/E ratio of c.16x, which is attractive given that the group is on the cusp of an earnings upswing, generating a return on equity of close to c.13%. Earnings on an upswing dividend increased by 25%. We project a three-year earnings CAGR of c.15% over FY25-28F on the back of higher deliveries across all business segments, especially at China Yuchai and in its building materials segment. We expect the group&rsquo s earnings to hit a record high, driving ROE close to 13% or more. In addition, FY25 dividend has risen 25% to 5Scts/share (following the doubling in dividends in FY24), given the company&rsquo s stellar operating performance and its net cash position. Powertrain solutions unit will be the main earnings catalyst. The powertrain solutions division has been reporting strong growth in the recent years, with revenues growing by more than 40% in FY25. China Yuchai has also been growing its market share in China, and this is attributed to the unit' s ongoing R& D efforts to improve its products and consistently introduce low emission solutions. The potential spin-off of its marine and generator subsidiary will be another value unlocking initiative that will power the next phase of growth as the unit targets rapid global expansion. Risks We see a global economic slowdown as the key risk to HLA' s earning as its Powertrain Solutions and Building Materials businesses are highly cyclical. |
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Ltinvestor
Member |
27-Feb-2026 13:52
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DBS target price for HL Asia $3.90 | ||||
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Joelton
Supreme |
27-Feb-2026 11:14
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Hong Leong Asia shares fall for second straight day despite strong H2 net profit The counter falls as much as 7.9% to a low of S$2.81 on Thursday [SINGAPORE] Shares of Hong Leong Asia (HLA) continued to fall on Thursday (Feb 26), marking a second straight day of decline despite reporting a strong second-half profit. The industrial group&rsquo s shares dropped as much as 7.9 per cent to a low of S$2.81 as at 9.08 am, following a 10.3 per cent drop to S$3.05 the previous day. This meant a 17.4 per cent decline across both days. HLA on Wednesday reported a 48.6 per cent surge in net profit for its half-year ended Dec 31, 2025 as revenue was up 26.2 per cent. It said demand in the domestic market to remain mixed, though it expects its unit China Yuchai International (CYI) to continue growing. The persistent drop in share price came despite the strong results and indicated a potential overhang of the October 2025 detainments of the director of CYI and former chief accountant of HLA unit and CYI operating subsidiary Guangxi Yuchai Machinery by Chinese authorities. The director, Wu Qiwei, who is also a former board member of CYI, is suspected of &ldquo serious violations of discipline and law&rdquo and is also &ldquo currently under disciplinary review&rdquo by the Discipline Inspection Commission of Guangxi Yuchai Machinery. He later resigned from his positions as director of CYI and Guangxi Yuchai Machinery. Separately, HLA said in January that Guangxi Yuchai Marine and Genset Power, an indirect subsidiary of CYI, has submitted an application to list its shares on the mainboard of the Hong Kong Stock Exchange. |
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Rightstock
Senior |
27-Feb-2026 09:40
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Have faith with HLA. There is a strong possibility that MGP may be restructured to be a subsidary of HLA. When MGP gets an approval for listing in the HKSE, HLA share price may shoot to $4.00 and above. As for AEM, looking at the way it goes up yesterday and today there may be a private placement to a big player and the placement price may be way higher than the current price of $2.76. |
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ahberngh
Elite |
26-Feb-2026 17:41
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Hong Leong Group people always conservative and stingy.
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Iceycoke
Senior |
26-Feb-2026 17:18
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After 2 long red candlesticks, finally end with a small green tip. Heheheheh? sweeeee?. | ||||
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Joelton
Supreme |
26-Feb-2026 11:53
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Hong Leong Asia reports FY2025 earnings of $112.8 mil proposes final dividend of 3 cents per share Hong Leong Asia reported a 28.5% increase in FY2025 earnings to $112.8 million, driven by strong revenue growth in Yuchai and the building materials unit. The group proposed a final dividend of 3 cents per share, bringing the total dividend to 5 cents per share. Looking ahead, Hong Leong Asia anticipates continued growth in Yuchai&rsquo s business and steady growth in its building materials unit, despite challenges from volatile input costs and supply chain disruptions.
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Joelton
Supreme |
26-Feb-2026 11:52
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Hong Leong Asia posts 48.6% rise in H2 net profit to S$56.8 million The board has proposed a final dividend of S$0.03 per share [SINGAPORE] Hong Leong Asia (HLA) : H22 -10.29% on Wednesday (Feb 25) reported a 48.6 per cent surge in net profit for its half-year ended Dec 31, 2025, to S$56.8 million, from S$38.2 million the year before. Revenue stood at S$2.5 billion for the period, up 26.2 per cent from S$2 billion in the corresponding period a year prior. The board has proposed a final dividend of S$0.03 per share. Together with the interim dividend paid of S$0.02 per share, this marks a dividend of S$0.05 per share for FY2025, compared with S$0.04 for FY2024. The proposed final dividend for financial year ended Dec 31, 2025 will be payable on May 15, subject to shareholders&rsquo approval at the upcoming annual general meeting of the company, with the record date on May 6. Earnings per share stood at S$0.0759 for H2 FY2025, up from S$0.0511 in the same period a year before. Cost of sales widened by 23 per cent during the period to S$2 billion, from S$1.6 billion a year prior. Other income fell by 41.3 per cent year on year to S$47.4 million for H2, from S$80.7 million in the same period in FY2024. While the group expects demand in the domestic market to remain mixed, it said that its unit China Yuchai International should continue to grow. This is due to rising demand for more advanced engines from data centre applications, and growth in the export market for truck and bus applications. For H2 FY2025, the group&rsquo s selling and distribution expenses were S$177.7 million, an increase of 3.5 per cent as compared to S$171.7 million in H2 FY2024, largely due to higher staff costs for China Yuchai, and higher delivery costs for China Yuchai and the company&rsquo s building materials unit. &ldquo This was partially offset by lower allowance for doubtful debt and the absence of bad debts written off which were recorded in H2 FY2024 for China Yuchai,&rdquo said Hong Leong Asia. Additionally, research and development expenses were S$159.1 million in H2, an increase of 45.4 per cent as compared to S$109.4 million a year ago, largely due to higher experimental costs, staff costs, mould costs and impairment losses of development costs recognised for China Yuchai. The company owns a 48.7 per cent stake in China Yuchai International. &ldquo Yuchai is working on research and development initiatives to improve its portfolio of powertrain solutions. At the same time, (its) partnerships with global industrial leaders will continue to strengthen market access,&rdquo said the bourse filing. Shares of HLA ended Wednesday 10.3 per cent or S$0.35 lower at S$3.05 prior to the release of results. |
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ahberngh
Elite |
26-Feb-2026 10:40
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I think some big holders are cashing out, they probably bought at much lower prices. Maybe time for compnay to do share buyback since they are cash rich! |
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Iceycoke
Senior |
26-Feb-2026 10:39
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I get what you mean. I think they are still growing. It might not be a bad idea to keep more money and use it for company expansion. They do not want to go thru another round of raising money exercise. Not healthy.
They would give more dividend once the company has a stabilise income. And not forgetting they would be giving 2 rounds of dividend. Above is my thought la.
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Iceycoke
Senior |
26-Feb-2026 10:33
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My interpretation. Shake the weak holders. Buy at lower price almost immediately. Very very shrewd.
I got money. I got time. Institutions are different they got more money but they had dateline to meet. If they are reading here. I can let them know, I can wait for another few more years since I waited since 2020. Wakakakaka?
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Ltinvestor
Member |
26-Feb-2026 10:30
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5 cents dividend a year means HL Asia will pay out SGD37.4M. And they have cash SGD1.6B in the bank. All of us minority shareholders should attend the coming AGM and ask the management to explain their dividend policy and ask for a special dividend. They should distribute half of the cash as dividends. ROE is now only 3.9% as a result of hoarding too much cash. If they distribute half of cash as dividend, ROE will shoot up and share price will go to at least SGD6. The management and IDs should be scolded to make them wake up.
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Iceycoke
Senior |
26-Feb-2026 10:18
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With such comparison, they might push the price down so that 3% seems more worthwhile. Haha..
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YewTee
Member |
26-Feb-2026 10:17
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from $0.60 to $3.40....now many counters also similar pattern up before FR and then...... | ||||
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Ltinvestor
Member |
26-Feb-2026 09:04
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5 cents out of $3.05 means low dividend 1.6% dividend yield. Investors do not like it. | ||||
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eddyeddy
Master |
26-Feb-2026 00:21
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Why dropped so much ? | ||||
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