Latest news with #HongLeongAsia
Business Times
7 days ago
- Business
- Business Times
UOBKH portfolio of alpha picks beats STI in July; new top choices for Singapore, Malaysia named
[SINGAPORE] The UOB Kay Hian (UOBKH) alpha picks portfolio surpassed the Straits Times Index (STI) in July despite the latter hitting record highs , said an analyst report on Monday (Aug 4). The alpha picks portfolio had gains of 17.7 per cent month on month on an equal-weighted basis, or 6 per cent on a market capitalisation-weighted basis. This was in comparison to a 5.3 per cent month-on-month increase for the STI in both respects. Positive news about the S$5 billion capital injection by the Monetary Authority of Singapore (MAS) backed the strong performance of the portfolio, said UOBKH. 'With 10 out of 14 stocks in our portfolio being non-index stocks, we remain well-positioned for MAS' S$5 billion capital injection,' the report indicated. The STI experienced gains in the latter half of July, driven less by the original Aug 1 tariff deadline and more by the better-than-expected US economic data that boosted investor optimism, added UOBKH. The alpha picks portfolio performance was driven by jumps in iFast, Frencken Group and China Sunsine Chemical Holdings. There were no underperformers in July. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up New Singapore picks for August Three new small to mid-cap stocks – Hong Leong Asia, Marco Polo Marine and CSE Global – were added to the Singapore alpha picks portfolio for August. Hong Leong Asia was added due to tailwinds in the construction sector, while Marco Polo Marine was included because it is set to benefit from high charter rates and vessel utilisation in the second half of the year, said UOBKH. CSE Global was added due to a robust and growing orderbook. The pair of iFast and Sheng Siong were removed, marking profits of 40.7 per cent and 19.3 per cent, respectively. August's portfolio has been adjusted in preparation of the MAS cash injection, which is set to lift undervalued, small-cap stocks. UOBKH's Singapore alpha picks portfolio for August thus comprises PropNex, DFI Retail, ComfortDelGro, Hong Leong Asia, Marco Polo Marine, CSE Global, China Sunsine Chemical Holdings, Food Empire Holdings, Frencken Group, Valuetronics Holdings, UMS Integration, CapitaLand Ascendas Real Estate Investment Trust, OCBC and CapitaLand Integrated Commercial Trust. New Malaysia picks for August The Malaysia alpha picks outperformed the Kuala Lumpur Composite Index (KLCI), gaining 5.6 per cent as the KLCI fell 1.3 per cent in July. The construction, building materials and property sectors were the biggest winners. Only Zetrix AI and Duopharma Biotech saw negative returns at minus 7.4 per cent and minus 1.5 per cent, respectively. The utilities, banking and healthcare sectors experienced the largest drops. RHB Bank is a new addition to the portfolio, with UOBKH stating that the defensive and high-yielding bank should pare back some of its year-to-date losses. It replaces Duopharma Biotech, which UOBKH said lacks near-term catalysts. The August picks are calibrated to outperform anticipated events such as a 'summer lull', triggered by the poor US non-farm payroll data on Aug 1. Meanwhile, the portfolio is set to take advantage of Malaysia's recently struck trade deal with the US, where imports from the South-east Asian country will be charged a 19 per cent tariff . UOBKH's August Malaysia alpha picks portfolio thus comprises Coraza Integrated Technology, Eco World Development, Gamuda, Hume Cement Industries, IJM Corp, Inari Amertron, RHB Bank and Zetrix AI.
Yahoo
24-07-2025
- Business
- Yahoo
Is Hong Leong Asia Ltd.'s (SGX:H22) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
Hong Leong Asia (SGX:H22) has had a great run on the share market with its stock up by a significant 55% over the last three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. In this article, we decided to focus on Hong Leong Asia's ROE. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How To Calculate Return On Equity? Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Hong Leong Asia is: 6.2% = S$152m ÷ S$2.5b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every SGD1 worth of equity, the company was able to earn SGD0.06 in profit. See our latest analysis for Hong Leong Asia What Has ROE Got To Do With Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. A Side By Side comparison of Hong Leong Asia's Earnings Growth And 6.2% ROE On the face of it, Hong Leong Asia's ROE is not much to talk about. Although a closer study shows that the company's ROE is higher than the industry average of 4.2% which we definitely can't overlook. Consequently, this likely laid the ground for the decent growth of 10% seen over the past five years by Hong Leong Asia. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. So there might well be other reasons for the earnings to grow. Such as- high earnings retention or the company belonging to a high growth industry. As a next step, we compared Hong Leong Asia's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 10% in the same period. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Hong Leong Asia is trading on a high P/E or a low P/E, relative to its industry. Is Hong Leong Asia Efficiently Re-investing Its Profits? Hong Leong Asia has a three-year median payout ratio of 27%, which implies that it retains the remaining 73% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently. Besides, Hong Leong Asia has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 28%. Still, forecasts suggest that Hong Leong Asia's future ROE will rise to 11% even though the the company's payout ratio is not expected to change by much. Summary Overall, we are quite pleased with Hong Leong Asia's performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Business Times
09-07-2025
- Business
- Business Times
Hong Leong Asia unit China Yuchai International introduces share options to incentivise staff
[SINGAPORE] Hong Leong Asia on Tuesday (Jul 9) announced that its subsidiary China Yuchai International (CYI) will be implementing an equity incentive plan totalling 1.8 million shares of US$0.10 each in the capital of CYI. This is around 4.6 per cent of the enlarged share capital of the subsidiary. Its aim is to create opportunities for directors and employees of CYI and its subsidiaries to participate in its equity. The equity types proposed by the plan include options, restricted stock and stock payments. The group said that the maximum aggregate number of CYI shares which may be granted to any one person during any calendar year shall be 300,000. An option holder will not have any rights as a shareholder, until shares of CYI have been issued to the holder. The period for an option shall be determined by the compensation committee, subject to a maximum of 10 years from the date such option is granted. Other limitations may also apply upon the termination of an option holder's employment or service. The plan has a termination date of May 16, 2035, 10 years from when CYI's board adopted the plan – May 16, 2025. Headquartered in Singapore, CYI is an investment holding company listed on the New York Stock Exchange. The principal operating subsidiary of CYI, Guangxi Yuchai Machinery Company, is based in Yulin, Guangxi Zhuang Autonomous Region in China. It is one of the largest powertrain solutions manufacturers in the country. Hong Leong Asia has a 48.7 per cent stake in CYI. The counter closed 1.2 per cent or S$0.02 higher at S$1.63 on Tuesday.
Business Times
09-07-2025
- Business
- Business Times
Hong Leong Asia unit imposes equity incentive plan of 1.8 million shares at US$0.10 apiece
[SINGAPORE] Hong Leong Asia on Tuesday (Jul 9) announced that its subsidiary China Yuchai International (CYI) will be implementing an equity incentive plan totalling 1.8 million shares of US$0.10 each in the capital of CYI. This is around 4.6 per cent of the enlarged share capital of the subsidiary. Its aim is to create opportunities for directors and employees of CYI and its subsidiaries to participate in its equity. The equity types proposed by the plan include options, restricted stock and stock payments. The group said that the maximum aggregate number of CYI shares which may be granted to any one person during any calendar year shall be 300,000. With regard to options, a holder of an option shall not have any rights as a CYI shareholder until such time as the CYI shares underlying the award have been issued to the holder. The period for an option shall be determined by the compensation committee, subject to a maximum of 10 years from the date such option is granted. Other limitations may also apply upon the termination of an option holder's employment or service. The plan has a termination date of May 16, 2035, 10 years from when CYI's board adopted the plan – May 16, 2025. Headquartered in Singapore, CYI is an investment holding company listed on the New York Stock Exchange. The principal operating subsidiary of CYI, Guangxi Yuchai Machinery Company, is based in Yulin, Guangxi Zhuang Autonomous Region in China. It is one of the largest powertrain solutions manufacturers in the country. Hong Leong Asia has a 48.7 per cent stake in CYI. The counter closed 1.2 per cent or S$0.02 higher at S$1.63 on Tuesday.
Yahoo
27-05-2025
- Business
- Yahoo
Investors in Hong Leong Asia (SGX:H22) have seen impressive returns of 163% over the past five years
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Hong Leong Asia Ltd. (SGX:H22) stock is up an impressive 125% over the last five years. Also pleasing for shareholders was the 15% gain in the last three months. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Over half a decade, Hong Leong Asia managed to grow its earnings per share at 14% a year. This EPS growth is lower than the 18% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Hong Leong Asia, it has a TSR of 163% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! It's nice to see that Hong Leong Asia shareholders have received a total shareholder return of 100% over the last year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 21% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Hong Leong Asia better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Hong Leong Asia , and understanding them should be part of your investment process. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
