(H22) HONG LEONG ASIA - SG
Sector: Consumer Cyclical | Industry: Auto Manufacturers | Exchange: SG (Singapore) | Market Cap: 2.466m SGD | Total Return: 146% in 12m
Avg Turnover: 4.89M
Warnings
Choppy
Tailwinds
Rs Leader, Idiosyncratic Leader, Confidence, Tailwind
Hong Leong Asia Ltd. is a Singapore-based investment holding company specializing in powertrain solutions and building materials across Asia. The company manufactures a diverse range of diesel and natural gas engines for the automotive, industrial, and marine sectors, while its building materials division supplies essential components like cement, ready-mix concrete, and pre-cast products.
The business model relies on heavy industrial manufacturing, which is highly sensitive to infrastructure spending cycles and regional construction demand in China and Southeast Asia. As a powertrain provider, the company operates in a capital-intensive sector currently facing transition pressures toward electrification and stricter emission standards. Investors may find it useful to examine ValueRay for deeper insights into these industry trends. Hong Leong Asia operates as a subsidiary of Hong Leong Corporation Holdings Pte Ltd and has maintained its market presence since 1941.
- Yuchai engine sales volume driven by China commercial vehicle demand
- Infrastructure spending in Singapore and Malaysia boosts building materials margins
- Raw material cost fluctuations impact cement and pre-cast concrete profitability
- Strategic shift toward New Energy Power systems and hydrogen technology adoption
| Net Income: 112.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 3.78 > 1.0 |
| NWC/Revenue: 27.47% < 20% (prev 32.31%; Δ -4.84% < -1%) |
| CFO/TA 0.09 > 3% & CFO 594.2m > Net Income 112.8m |
| Net Debt (-1.55b) to EBITDA (328.2m): -4.74 < 3 |
| Current Ratio: 1.39 > 1.5 & < 3 |
| Outstanding Shares: last quarter (748.1m) vs 12m ago 0.02% < -2% |
| Gross Margin: 18.28% > 18% (prev 17.20%; Δ 1.08% > 0.5%) |
| Asset Turnover: 82.91% > 50% (prev 73.16%; Δ 9.76% > 0%) |
| Interest Coverage Ratio: 7.83 > 6 (EBIT TTM 169.6m / Interest Expense TTM 21.7m) |
| A: 0.21 (Total Current Assets 5.05b - Total Current Liabilities 3.63b) / Total Assets 6.69b |
| B: 0.08 (Retained Earnings 512.1m / Total Assets 6.69b) |
| C: 0.03 (EBIT TTM 169.6m / Avg Total Assets 6.25b) |
| D: 0.27 (Book Value of Equity 1.09b / Total Liabilities 4.11b) |
| Altman-Z'' = 2.11 = BBB |
| DSRI: 0.28 (Receivables 648.9m/1.91b, Revenue 5.18b/4.25b) |
| GMI: 0.94 (GM 17.20% / 18.28%) |
| AQI: 0.91 (AQ_t 0.11 / AQ_t-1 0.12) |
| SGI: 1.22 (Revenue 5.18b / 4.25b) |
| TATA: -0.07 (NI 112.8m - CFO 594.2m) / TA 6.69b) |
| Beneish M = -3.58 (Cap -4..+1) = AAA |
As of June 19, 2026, the stock is trading at SGD 3.14 with a total of 1,477,300 shares traded.
Over the past week, the price has changed by +5.37%,
over one month by -6.82%,
over three months by +8.65% and
over the past year by +145.95%.
HONG LEONG ASIA has no consensus analysts rating.
P/E Trailing = 20.6
P/E Forward = 14.556
P/S = 0.4759
P/B = 2.1296
P/EG = 0.531
Revenue TTM = 5.18b SGD
EBIT TTM = 169.6m SGD
EBITDA TTM = 328.2m SGD
Long Term Debt = 263.7m SGD (from longTermDebt, last quarter)
Short Term Debt = 493.7m SGD (from shortLongTermDebt, last quarter)
Debt = 48.2m SGD (Leases only: 48.2m)
Net Debt = -1.55b SGD (calculated: Debt 48.2m - CCE 1.60b)
Enterprise Value = 911.8m SGD (2.47b + Debt 48.2m - CCE 1.60b)
Interest Coverage Ratio = 7.83 (Ebit TTM 169.6m / Interest Expense TTM 21.7m)
EV/FCF = 2.03x (Enterprise Value 911.8m / FCF TTM 449.8m)
FCF Yield = 49.33% (FCF TTM 449.8m / Enterprise Value 911.8m)
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 = 0.14 (Enterprise Value 911.8m / Total Assets 6.69b)
Interest Expense / Debt = 44.97% (Interest Expense 21.7m / Debt 48.2m)
Taxrate = 26.33% (76.2m / 289.6m)
NOPAT = 125.0m (EBIT 169.6m * (1 - 26.33%))
Current Ratio = 1.39 (Total Current Assets 5.05b / Total Current Liabilities 3.63b)
Debt / Equity = 0.04 (Debt 48.2m / totalStockholderEquity, last quarter 1.09b)
Debt / EBITDA = -4.74 (Net Debt -1.55b / EBITDA 328.2m)
Debt / FCF = -3.46 (Net Debt -1.55b / FCF TTM 449.8m)
Total Stockholder Equity = 1.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.81% (Net Income 112.8m / Total Assets 6.69b)
RoE = 11.08% (Net Income TTM 112.8m / Total Stockholder Equity 1.02b)
RoCE = 13.23% (EBIT 169.6m / Capital Employed (Equity 1.02b + L.T.Debt 263.7m))
RoIC = 4.45% (NOPAT 125.0m / Invested Capital 2.81b)
WACC = 7.43% (E(2.47b)/V(2.51b) * Re(6.93%) + D(48.2m)/V(2.51b) * Rd(44.97%) * (1-Tc(0.26)))
Discount Rate = 6.93% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 75.42 | Cagr: 0.02%
[DCF] Terminal Value 77.97% ; FCFF base≈338.3m ; Y1≈387.8m ; Y5≈570.7m
[DCF] Fair Price = 12.71 (EV 8.59b - Net Debt -1.55b = Equity 10.1b / 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=0.20 | Chg30d=+5.31% | Revisions=+43% | GrowthEPS=+31.5% | GrowthRev=+13.9%
EPS next Year (2027-12-31): EPS=0.23 | Chg30d=+10.57% | Revisions=+43% | GrowthEPS=+18.1% | GrowthRev=+7.8%
[Analyst] Revisions Ratio: +43%