H22 Stock Analysis: HONG LEONG ASIA | SG
Auto Manufacturers | SG, Singapore | Market Cap: 2.203m SGD | 12M Return: 72.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.86M
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 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 July 29, 2026, the stock is trading at SGD 2.94 with a total of 1,816,600 shares traded. Over the past week, the price has changed by +10.94%, over one month by +6.52%, over three months by -2.93% and over the past year by +72.05%.
Current recommended Stop Loss: 2.70 (which is 8.2% or 2 ATR below the current price).
HONG LEONG ASIA has no consensus analysts rating.
P/E Trailing = 18.4
P/E Forward = 13.245
P/S = 0.4251
P/B = 1.9393
P/EG = 0.5544
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 = 648.4m SGD (2.20b + Debt 48.2m - CCE 1.60b)
Interest Coverage Ratio = 7.83 (Ebit TTM 169.6m / Interest Expense TTM 21.7m)
EV/FCF = 1.44x (Enterprise Value 648.4m / FCF TTM 449.8m)
FCF Yield = 69.37% (FCF TTM 449.8m / Enterprise Value 648.4m)
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 = 0.10 (Enterprise Value 648.4m / 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 = 7.73% (E(2.20b)/V(2.25b) * Re(7.17%) + D(48.2m)/V(2.25b) * Rd(44.97%) * (1-Tc(0.26)))
Discount Rate = 7.17% (= 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=0.20 | Chg30d=+5.31% | Revisions=+50% | GrowthEPS=+31.5% | GrowthRev=+13.9%
EPS next Year (2027-12-31): EPS=0.23 | Chg30d=+10.57% | Revisions=+50% | GrowthEPS=+18.1% | GrowthRev=+7.8%
[Analyst] Revisions Ratio: +67% (up=6, down=0)