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Hong Leong Asia
(SGX:H22)
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Rating:66Neutral
Price Target:
S$2.50
▼(-14.97% Downside)
Action:Reiterated
Date:08/30/26
The score is driven primarily by improving financial performance (better margins, reduced leverage, and solid recent cash generation) and supportive technicals (price above key moving averages with positive MACD). These positives are tempered by still-thin net margins, modest revenue growth, and weakening/volatile free cash flow, while valuation appears fair rather than clearly attractive.
Positive Factors
Improving Balance Sheet
Lower leverage and improving return on equity indicate a stronger capital structure and more productive use of shareholder funds. This can improve financial resilience, reduce balance-sheet pressure, and provide greater flexibility to support operations and investment over the next several quarters.
Negative Factors
Thin Net Margins
A net margin of roughly 2.7% leaves limited protection against cost increases, weaker demand, or execution variability. Because only a small portion of revenue becomes bottom-line profit, relatively modest operational pressure could materially reduce earnings and cash available for reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Balance Sheet
Lower leverage and improving return on equity indicate a stronger capital structure and more productive use of shareholder funds. This can improve financial resilience, reduce balance-sheet pressure, and provide greater flexibility to support operations and investment over the next several quarters.
Read all positive factors
Hong Leong Asia (H22) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$1.88B
Dividend Yield2.55%
Average Volume (3M)1.73M
Price to Earnings (P/E)12.0
Beta (1Y)1.44
Revenue Growth17.08%
EPS Growth55.87%
CountrySG
Employees10,522
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.20
Shares Outstanding798,146,240
10 Day Avg. Volume2,186,640
30 Day Avg. Volume1,726,789
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$5.05Price Target Upside71.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.21
Revenue Forecast (FY)S$5.93B
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
66
Positive
Balance Sheet
68
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.48B | 5.18B | 4.08B | 4.25B | 3.88B | 4.93B |
| Gross Profit | 1.14B | 947.18M | 684.48M | 730.80M | 681.59M | 729.44M |
| EBITDA | 459.69M | 469.83M | 365.09M | 379.95M | 304.51M | 324.44M |
| Net Income | 148.72M | 112.82M | 64.88M | 87.78M | 54.54M | 60.12M |
Balance Sheet | ||||||
| Total Assets | 7.82B | 6.58B | 5.81B | 5.50B | 5.32B | 5.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.84B | 1.60B | 1.35B | 1.23B | 1.01B | 1.22B |
| Total Debt | 807.65M | 805.59M | 920.75M | 930.50M | 915.20M | 943.29M |
| Total Liabilities | 4.75B | 4.00B | 3.36B | 3.13B | 2.96B | 3.46B |
| Stockholders Equity | 1.34B | 1.09B | 1.01B | 922.01M | 902.55M | 956.90M |
Cash Flow | ||||||
| Free Cash Flow | 352.63M | 514.19M | 170.97M | 262.85M | -112.33M | -70.01M |
| Operating Cash Flow | 473.37M | 627.82M | 289.64M | 362.04M | 37.65M | 130.67M |
| Investing Cash Flow | -374.56M | -145.89M | -29.36M | -72.41M | -69.36M | -238.57M |
| Financing Cash Flow | -21.21M | -198.84M | -155.30M | -49.38M | -63.56M | -85.30M |
Hong Leong Asia Technical Analysis
Negative
2.94
Price Trends
2.73
Negative
2.79
Negative
2.92
Negative
Market Momentum
-0.11
Positive
35.62
Neutral
21.57
Neutral
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 2.94 is above the 20-day moving average (MA) of 2.51, above the 50-day MA of 2.73, and above the 200-day MA of 2.92, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | S$1.05B | 15.59 | 5.59% | 6.00% | 26.02% | -77.59% | |
66 Neutral | S$1.88B | 11.98 | 12.25% | 2.55% | 17.08% | 55.87% | |
62 Neutral | S$684.58M | 23.00 | 3.27% | 1.10% | 0.28% | -10.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | S$312.01M | 6.67 | 6.02% | 3.75% | 24.46% | 4.83% |
* Consumer Cyclical Sector Average
SG:H22
Hong Leong Asia
2.35
>-0.01
-0.42%
SG:B58
Banyan Tree Holdings
0.36
-0.26
-42.03%
SG:AVX
HL Global Enterprises Limited
0.33
0.00
0.00%
SG:H07
Stamford Land Corporation Ltd
0.46
-0.02
-5.01%
SG:H15
Hotel Properties Limited
5.06
0.16
3.33%
SG:OU8
Centurion Corporation Limited
1.25
-0.01
-1.19%
Hong Leong Asia Corporate Events
China Yuchai Forms ADI Joint Venture to Boost Advanced Powertrain Materials
Oct 20, 2026
China Yuchai International’s subsidiary Guangxi Yuchai Foundry has formed a new joint venture with Guangxi Zhenye New Materials to develop austempered ductile iron heat treatment capabilities in Yulin, Guangxi.The new entity, Guangxi Aobei T...
Hong Leong Asia Details Further Use of Share Placement Proceeds
Oct 20, 2026
Hong Leong Asia has provided an update on the deployment of net proceeds from its placement of 50 million new ordinary shares earlier this year. The group continues to prioritise general corporate activities, including investments, acquisitions, b...
China Yuchai Subsidiary Renews Hong Kong Listing Bid and Updates Disclosures
Aug 31, 2026
China Yuchai International Limited, headquartered in Singapore, operates in the engine and power systems industry through subsidiaries including Guangxi Yuchai Marine and Genset Power Co., Ltd. MGP focuses on marine and genset power solutions for ...
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...
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.