H22 Stock Analysis: HONG LEONG ASIA | SG
Auto Manufacturers | SG, Singapore | Market Cap: 2.099m SGD | 12M Return: -5.6% | SG1F76860344 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.67M
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Hong Leong Asia Ltd. (H22) is a Singapore-based investment holding company founded in 1941 and controlled by Hong Leong Corporation Holdings Pte Ltd. It operates two core segments: Powertrain Solutions, which manufactures diesel and gas engines for on-road, off-road, genset, marine, and agricultural applications, and Building Materials, which produces cement, pre-cast concrete, ready-mix concrete, and quarry products. Its primary markets include the Peoples Republic of China, Singapore, Malaysia, and other international regions.
The company follows a diversified industrial conglomerate model, generating revenue across unrelated verticals-automotive powertrain components and construction-related materials-which allows it to balance cyclical exposure between transportation demand and infrastructure activity. Its powertrain business serves both OEM and aftermarket customers in the commercial vehicle, industrial equipment, and genset (electricity generation) markets, while its building materials unit is positioned as a vertically integrated supplier covering cement production through to downstream concrete products.
- China property downturn pressures cement volumes and margins
- Diesel powertrain demand softens on weak commercial vehicle sales
- Coal and energy costs weigh on building materials profitability
| Net Income: 112.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 3.12 > 1.0 |
| NWC/Revenue: 34.56% < 20% (prev 30.98%; Δ 3.59% < -1%) |
| CFO/TA 0.08 > 3% & CFO 594.2m > Net Income 112.8m |
| Net Debt (-1.79b) to EBITDA (469.8m): -3.80 < 3 |
| Current Ratio: 1.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (798.1m) vs 12m ago 6.71% < -2% |
| Gross Margin: 18.28% > 18% (prev 17.20%; Δ 1.08% > 0.5%) |
| Asset Turnover: 72.40% > 50% (prev 65.45%; Δ 6.95% > 0%) |
| Interest Coverage Ratio: 14.36 > 6 (EBIT TTM 311.2m / Interest Expense TTM 21.7m) |
| A: 0.23 (Total Current Assets 6.05b - Total Current Liabilities 4.26b) / Total Assets 7.82b |
| B: 0.07 (Retained Earnings 512.1m / Total Assets 7.82b) |
| C: 0.04 (EBIT TTM 311.2m / Avg Total Assets 7.16b) |
| D: 0.28 (Book Value of Equity 1.34b / Total Liabilities 4.75b) |
| Altman-Z'' = 2.30 = BBB |
| DSRI: 0.98 (Receivables 2.99b/2.51b, Revenue 5.18b/4.25b) |
| GMI: 0.94 (GM 17.20% / 18.28%) |
| AQI: 0.95 (AQ_t 0.10 / AQ_t-1 0.10) |
| SGI: 1.22 (Revenue 5.18b / 4.25b) |
| TATA: -0.06 (NI 112.8m - CFO 594.2m) / TA 7.82b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of October 11, 2026, the stock is trading at SGD 2.56 with a total of 1,366,100 shares traded. Over the past week, the price has changed by -2.66%, over one month by -16.34%, over three months by -3.40% and over the past year by -5.60%.
Current recommended Stop Loss: 2.40 (which is 6.3% or 1.8 ATR below the current price).
HONG LEONG ASIA has no consensus analysts rating.
P/E Trailing = 13.15
P/E Forward = 12.0773
P/S = 0.3714
P/B = 1.6475
P/EG = 0.5053
Revenue TTM = 5.18b SGD
EBIT TTM = 311.2m SGD
EBITDA TTM = 469.8m SGD
Long Term Debt = 263.8m SGD (from longTermDebt, last quarter)
Short Term Debt = 493.4m SGD (from shortLongTermDebt, last quarter)
Debt = 50.5m SGD (Leases only: 50.5m)
Net Debt = -1.79b SGD (calculated: Debt 50.5m - CCE 1.84b)
Enterprise Value = 311.5m SGD (2.10b + Debt 50.5m - CCE 1.84b)
Interest Coverage Ratio = 14.36 (Ebit TTM 311.2m / Interest Expense TTM 21.7m)
EV/FCF = 0.69x (Enterprise Value 311.5m / FCF TTM 449.8m)
FCF Yield = 144.4% (FCF TTM 449.8m / Enterprise Value 311.5m)
FCF Margin = 8.68% (FCF TTM 449.8m / Revenue TTM 5.18b)
Net Margin = 2.18% (Net Income TTM 112.8m / Revenue TTM 5.18b)
Gross Margin = 18.28% ((Revenue TTM 5.18b - Cost of Revenue TTM 4.24b) / Revenue TTM)
Gross Margin QoQ = none% (prev none%)
Tobins Q-Ratio = 0.04 (Enterprise Value 311.5m / Total Assets 7.82b)
Interest Expense / Debt = 42.96% (Interest Expense 21.7m / Debt 50.5m)
Taxrate = 26.33% (76.2m / 289.6m)
NOPAT = 229.3m (EBIT 311.2m * (1 - 26.33%))
Current Ratio = 1.42 (Total Current Assets 6.05b / Total Current Liabilities 4.26b)
Debt / Equity = 0.04 (Debt 50.5m / totalStockholderEquity, last quarter 1.34b)
Debt / EBITDA = -3.80 (Net Debt -1.79b / EBITDA 469.8m)
Debt / FCF = -3.97 (Net Debt -1.79b / FCF TTM 449.8m)
Total Stockholder Equity = 1.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.58% (Net Income 112.8m / Total Assets 7.82b)
RoE = 10.14% (Net Income TTM 112.8m / Total Stockholder Equity 1.11b)
RoCE = 22.61% (EBIT 311.2m / Capital Employed (Equity 1.11b + L.T.Debt 263.8m))
RoIC = 6.93% (NOPAT 229.3m / Invested Capital 3.31b)
WACC = 8.15% (E(2.10b)/V(2.15b) * Re(7.59%) + D(50.5m)/V(2.15b) * Rd(42.96%) * (1-Tc(0.26)))
Discount Rate = 7.59% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.45 | Cagr: 0.02%
[DCF] Terminal Value 77.97% ; FCFF base≈338.3m ; Y1≈387.8m ; Y5≈570.7m
[DCF] Fair Price = 13.00 (EV 8.59b - Net Debt -1.79b = Equity 10.4b / Shares 798.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
Revenue Correlation: 93.41 | Revenue CAGR: 12.68% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=0.21 | Chg30d=+6.05% | Revisions=+40% | GrowthEPS=+39.5% | GrowthRev=+16.4%
EPS next Year (2027-12-31): EPS=0.25 | Chg30d=+5.42% | Revisions=+40% | GrowthEPS=+17.4% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: +57% (up=4, down=0)