H22 Stock Analysis: HONG LEONG ASIA | SG
Auto Manufacturers | SG, Singapore | Market Cap: 2.546m SGD | 12M Return: 15.4% | SG1F76860344 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 5.82M
Warnings
Tailwinds
Seasonality 11.6 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. The company operates two main business segments - Powertrain Solutions and Building Materials - with manufacturing and distribution activities spanning China, Singapore, Malaysia, and other international markets. Despite being classified under GICS Consumer Discretionary / Automobile Manufacturers, the groups revenue is split between industrial engine production and construction-related materials.
The Powertrain Solutions segment produces engines and powertrain components for a broad range of end-uses, including on-road vehicles (trucks, buses, passenger vehicles), off-road equipment, gensets, and marine vessels, as well as industrial and agricultural machinery. Diesel and small-to-medium engine manufacturing for these applications is typically capital-intensive and tied closely to commercial vehicle, infrastructure, and marine cycles in Asia.
The Building Materials segment supplies cement, pre-cast concrete products, ready-mix concrete, and quarry products, serving construction and infrastructure demand. Cement and ready-mix concrete production is a regional, heavy-asset business where logistics costs and proximity to raw material reserves are key competitive factors, particularly within the Asian markets the company serves.
- China property slump drags cement and concrete volumes
- Diesel powertrain demand weakens on commercial vehicle cycle
- China exposure pressures margins amid real estate weakness
| 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 August 25, 2026, the stock is trading at SGD 2.80 with a total of 2,150,900 shares traded. Over the past week, the price has changed by -12.50%, over one month by -2.44%, over three months by -20.90% and over the past year by +15.43%.
Current recommended Stop Loss: 2.60 (which is 7.1% or 1.7 ATR below the current price).
HONG LEONG ASIA has no consensus analysts rating.
P/E Trailing = 15.95
P/E Forward = 15.6986
P/S = 0.4505
P/B = 1.8743
P/EG = 0.6569
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 = 991.6m SGD (2.55b + Debt 48.2m - CCE 1.60b)
Interest Coverage Ratio = 7.83 (Ebit TTM 169.6m / Interest Expense TTM 21.7m)
EV/FCF = 2.20x (Enterprise Value 991.6m / FCF TTM 449.8m)
FCF Yield = 45.36% (FCF TTM 449.8m / Enterprise Value 991.6m)
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 = 0.15 (Enterprise Value 991.6m / 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 = 8.14% (E(2.55b)/V(2.59b) * Re(7.67%) + D(48.2m)/V(2.59b) * Rd(44.97%) * (1-Tc(0.26)))
Discount Rate = 7.67% (= 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 = 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=0.21 | Chg30d=+6.05% | Revisions=+50% | GrowthEPS=+39.5% | GrowthRev=+16.4%
EPS next Year (2027-12-31): EPS=0.25 | Chg30d=+5.42% | Revisions=+50% | GrowthEPS=+17.4% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: +67% (up=6, down=0)