H22 Stock Analysis: HONG LEONG ASIA | SG
Auto Manufacturers | SG, Singapore | Market Cap: 2.267m SGD | 12M Return: 14.8% | SG1F76860344 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.92M
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. 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: 0.06 > 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 (328.2m): -5.45 < 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: 7.83 > 6 (EBIT TTM 169.6m / 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: 0.02 (EBIT TTM 169.6m / Avg Total Assets 7.16b) |
| D: 0.28 (Book Value of Equity 1.34b / Total Liabilities 4.75b) |
| Altman-Z'' = 2.17 = 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 September 27, 2026, the stock is trading at SGD 2.75 with a total of 744,700 shares traded. Over the past week, the price has changed by -3.17%, over one month by -5.17%, over three months by -4.84% and over the past year by +14.81%.
Current recommended Stop Loss: 2.60 (which is 5.5% or 1.5 ATR below the current price).
HONG LEONG ASIA has no consensus analysts rating.
P/E Trailing = 14.2
P/E Forward = 12.0773
P/S = 0.4011
P/B = 1.6953
P/EG = 0.5053
Revenue TTM = 5.18b SGD
EBIT TTM = 169.6m SGD
EBITDA TTM = 328.2m 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 = 479.1m SGD (2.27b + Debt 50.5m - CCE 1.84b)
Interest Coverage Ratio = 7.83 (Ebit TTM 169.6m / Interest Expense TTM 21.7m)
EV/FCF = 1.07x (Enterprise Value 479.1m / FCF TTM 449.8m)
FCF Yield = 93.88% (FCF TTM 449.8m / Enterprise Value 479.1m)
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 = 0.06 (Enterprise Value 479.1m / Total Assets 7.82b)
Interest Expense / Debt = 42.96% (Interest Expense 21.7m / Debt 50.5m)
Taxrate = 26.33% (76.2m / 289.6m)
NOPAT = 125.0m (EBIT 169.6m * (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 = -5.45 (Net Debt -1.79b / EBITDA 328.2m)
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 = 12.32% (EBIT 169.6m / Capital Employed (Equity 1.11b + L.T.Debt 263.8m))
RoIC = 3.78% (NOPAT 125.0m / Invested Capital 3.31b)
WACC = 8.12% (E(2.27b)/V(2.32b) * Re(7.60%) + D(50.5m)/V(2.32b) * Rd(42.96%) * (1-Tc(0.26)))
Discount Rate = 7.60% (= 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)