Highlights
KLSE: HLIND (3301)       HONG LEONG INDUSTRIES BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
11.20   0.00 (0.00%)  0.00 - 0.00  0
Analyze this stock with MQ Trader system

Overview

Market Cap: 3,673 Million
NOSH: 328 Million
Avg Volume (4 weeks):120,877
4 Weeks Range:11.02 - 12.30
4 Weeks Price Volatility (%):
91.06%
52 Weeks Range:9.08 - 12.30
52 Weeks Price Volatility (%):
91.06%
Average Price Target: 8.63
Price Target Upside/Downside: -2.57

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2018 [#3]  |  24-Apr-2018
Next QR | Est. Ann. Date: 30-Jun-2018  |  17-Aug-2018
T4Q P/E | EY: 29.74  |  3.36%
T4Q DY | Payout %: 3.97%  |  117.96%
T4Q NAPS | P/NAPS: 4.3109  |  2.60
T4Q NP Margin | ROE: 7.58%  |  8.73%

Headlines

Date Subject
03-May-2018 上升股:丰隆工业阻力RM11.66
09-Mar-2018 下跌股:丰隆工业RM10.80支撑
02-Mar-2018 上升股:丰隆工业阻力RM11.90
02-Mar-2018 Daily Technical Highlights – (HLIND, LCTITAN)
21-Feb-2018 上升股:丰隆工业阻力RM11.90
14-Feb-2018 下跌股:丰隆工业RM9.84支撑
05-Jan-2018 SOS Hong Leong Industries has been forgotten? Part 1
10-Nov-2017 Mplus Market Pulse - 10 Nov 2017
18-Aug-2017 Mplus Market Pulse - 18 Aug 2017
17-Aug-2017 HLIND 2017财政年最后一季血亏92m?! ~WSWT~
02-Aug-2017 马新闻纸工业清盘.首要媒体摆脱包袱
02-Aug-2017 Mplus Market Pulse - 2 Aug 2017

Business Background

Hong Leong Industries Bhd is a Malaysia-based company that primarily operates through two segments. The company’s consumer products segment manufactures, assembles, and markets consumer products, including motorcycles, scooters, and related parts, and produces ceramic tiles. The industrial products segment produces and distributes industrial products comprising fibre cement and concrete roofing products. The company also has associates that are involved in motorcycle manufacturing and distribution, as well as newsprint manufacturing and marketing. Hong Leong Industries generates the majority of its revenue from the Malaysian domestic market.
Trade this stock and receive a FREE I3investor T-shirt after 5 trades. Find out more.

  4 people like this.
 
Pinky What is happening???
28/09/2017 16:37
newz88 yeah.. what is happening? dropping so drastically?
28/09/2017 20:32
x3mg33 Q1 2018 results: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5597973
09/11/2017 18:16
x3mg33 Spectacular results, EPS 26sens for Q1
09/11/2017 18:17
MATB superb !!
09/11/2017 21:07
Thim Woo TP12.00
10/11/2017 09:07
Pinky Wow great!
10/11/2017 10:46
Tradewinds Whats with the sell off?
30/11/2017 16:53
x3mg33 Just noise...i wouldn't worry too much about it. if fundamentals are strong, you can sleep soundly with this counter.
30/11/2017 17:07
Tradewinds Agree. Huge potential upside if you discount the MNI impairment loss last qtr. Ticks all the fundamental boxes.Also realised huge play by less than a handful of traders with multiple lots. Just wondering if somethings brewing and they know something we don't?
01/12/2017 01:15
ykloh The ways the country is going, many using car now will have to switch to motorcycle !
01/12/2017 14:28
ykloh The ways the country is going, many using car now will have to switch to motorcycle !
01/12/2017 14:28
sosfinance DY is 5%.

PE range is 8-13x, coming FYE is 8x (net of RM512m net cash).

Business prospects is good (Yamaha - local and Vietnam).
18/01/2018 18:40
x3mg33 value buy
19/01/2018 14:17
Khai Thim Woo Good result, 82.94m for 2nd quarter
05/02/2018 19:53
kywoo The sales and profit figures that just came out from the second quarter is very impressive but widely expected. For the second quarter, sales grow by 12.6% while net profit up by 26%. EPS is up 20% (after netting out minority interest)For the half year results, sales is up 12% and net profit up 28%. EPS is up 23%. Based on first half year performance the EPS for financial year ending 2018 should be at least 1.10. At current market price the company is trading at a prospective PE of around 8.5 or so. We can expect dividend to increase accordingly to 55 sens per share (that is we are assuming the board is reasonable to minority shareholders and not hoard cash in the kitty) Looking at the profit contribution from the motorcycle business the local sales and profit are very impressive. Profit from local motorcycle business for half year increased by 50% while the Vietnam profit increased by 4.7%. All in all the motorcycle profit contributes more than 90% of overall group profit.The motorcycle business will be the money spinner and cash cow for the group for many years to come. The building materials business will continue to decline in terms of contribution despite high sales volume. What is even more fantastic about the balance sheet of the company is its net cash position (cash in bank less bank borrowing). It has now increased from RM 425 million from 6 months ago to RM 568 million. If the Board is really generous it can even declare a special dividend of 50 sens or so without any problem because by June 2018 the cash will go up even further.( I am hopeful they will look into this) I can say with confidence that Hong Leong Industries is one of the best buy in the market at the current price.
06/02/2018 11:27
x3mg33 @kywoo good write up!
06/02/2018 14:08
ongkkh kywoo, i like your comment. Please come more often to i3investor.
06/02/2018 21:36
EngineeringProfit Aiyo.......sold a bit too early to lock in profits.....(sigh)

....Looks like more $$$$$ coming, huh?
08/02/2018 16:17
sosfinance Good fundamental stock with growth. Currently undervalue due to one off impairment. Making about more than RM330m p.a. this FYE.
08/02/2018 18:10
EngineeringProfit Yes, SOS. See if can get a good discount to get back this stock today....
09/02/2018 07:19
EngineeringProfit Looks like a day after 'good bye' becomes a 'good buy'day

Profitable,huh
09/02/2018 10:39
Anthem2 That one off impairment is masking its true intrinsic value. Factor in the average EPS growth, look at it's EV multiples and price to free cash flow ratio, you've got a gem that's moving under everyone's radar.
10/02/2018 13:47
LeeFoundation Now looking actively at Petronm for its low pe high net cash biz.

Anything below 13 is still a good and fair valuation for Petronm. Look at just the fcf alone, smart investors will not easily let this counter go off from their radar.
12/02/2018 15:22
sosfinance Vietnam growth may be one of the catalyst for its Yamaha motorbike business coupled with recovery of sales in Malaysia. Yamaha is a sustainable "brand" and "moat". It's just waiting for more investors to discover it.

Forget about the price first (RM10.98), go get an estimates of the value, then compare with the price. Always look at 2-3 years in advance, if you can see something/catalyst that others haven't seen it, your return will be above consensus.
20/02/2018 09:38
sosfinance consumer stocks are sensitive to inflation and interest rates as well. price increase is common with better features. (one cent increase for coke is equal to additional USD6.45 billion profits).
20/02/2018 11:07
x3mg33 About time...11.20
20/02/2018 17:11
miketyu what happen
20/02/2018 21:28
Tradewinds Realisation of true value.
20/02/2018 23:48
alextan5680 Undervalue hlind continue ur north trip
27/02/2018 07:51
gabriel1985 Just keep and leave it. Good share.
01/03/2018 12:32
Flintstones This stock is creeping up quietly. It reminds me a lot about padini. High free cash flow, high dividend and growth
01/03/2018 20:22
sosfinance Don't sell until its Vietnam Yamaha reach maturity (of course if the price runs a lot faster than the fundamental, we have to run first).
01/03/2018 20:48
NoPlayBall Post removed. Why?
08/03/2018 14:09
padi23 when dividend?posible 40c
19/04/2018 11:23
jordanmaggie61 wonderful
19/04/2018 12:06
lyk204 Dividend ex-date is 8thMay2018.Entitlement date is 11th May 2018.22sen per share and a special dividend of 10 cent per share
26/04/2018 10:36
Lioncity Less ppl notice this counter which is also a Consumer stock, cash rich while PE is only 12. Price yet to move much. Good to enter.
17/05/2018 14:13
KingsMan Low profile stock but cash rich..
19/05/2018 14:03
wcting too low profile, cannot perform. buy padini better.
23/05/2018 11:11
kingJ I think should the foreign funds come in, they would surely pick up those rediculesly under value share like this
24/05/2018 11:51
Lioncity 12.22 New high. Sweet.
25/05/2018 20:05
kywoo Review of company,s performance based on 3rd quarter results.

(1) sales
9 months 2018 RM 1.9 billion (+11% )
9 months 2017 RM 1.7 billion (+6% )
9 months 2016 RM 1.6 billion (0 % )
9 months 2015 RM 1.6 billion

(2) Net profit due to HLI shareholers
9 months 2018 RM 228 million (+10%)
9 months 2017 RM 207 million (+16%)
9 months 2016 RM 178 million (+37%)
9 months 2015 RM 130 million (+ 5%)
9 months 2014 RM 124 million (+28%)
9 months 2014 RM 97 million

The profit to shareholders have been increasing every year The only exception was in 2017 when company has to write off RM 176 million due to its investment loss in a newsprint company in the final quarter of 2017. Hence, the final profit results for 2018 will show an increase of about 200% over that of 2017.
Projected net profit to shareholders for 2018 RM 310 million ( EPS $1.00)
Actual net profit to shareholders for 2017 RM 103 million ( EPS $0.33)

The company's shares is currently trading at a PE of around 11. A fairer PE should be around 15. Hence there is still a lot of room for the share price to increase given the current low valuation and fantastic profit growth potential.

(3) Motorcycle business profit contrbution

Although HLI is better known as a building material manufacturer and supplier, the fact is that the building material business contributes to only about 4% of total net profit. 96% of total group profit actually comes from the motorcycle business. That is why the profit potential for future profit growth is tremendous given the fact that its Yamaha brand is doing very well both locally and in Vietnam.
Perhaps, the company should be renamed as Hong Leong Yamaha Industries to reflect the importance of its motorcycle business.
9 months total 2018 9 months total 2017 9 months total 2016
Motorcycle profit (Local) RM 171.9 million RM 119.5 million RM 97 million
Motorcycle profit (Vietnam) RM 97 million RM 108 million RM 79 million
Total motorcycle profit RM 268.9 million RM 227.5 million RM 176 million
HLI Group profit RM 279 million RM 243 million RM 207 million
Overall motorcycle share 96.3% 93.6% 85%

The profit contribution from Yamaha Vietnam varies quite a bit from quarter to quarter. There should not be undue alarm that the 3rd quarter 2018 profits dropped quite a fair bit Just look at the following,
Q1 2017 RM 30.7 million
Q2 2017 RM 37,3 million
Q3 2017 RM 40.6 million
Q4 2017 RM 25.0 million
Q1 2018 RM 32.8 million
Q2 2018 RM 38.4 million
Q3 2018 RM 26.0 million
Q4 2018 RM 32.4 million (projected)

The motorcycle business is very secured and profitable as there is always a demand irrespective of the state of the economy. With a strong and well accepted brand like Yamaha, competition is limited. The only real competitor is Honda. In recent years Yamaha is eating into Honda's market share in the local market as well as in Vietnam. Other brands are not as successful in gaining market share. Demand in the coming months in Malaysia would even be better with the 0 rated GST.

(4) Group cash position

One of the strongest item in the balance sheet is the speed and quantum of cash accumulation over the last few years. There are not many listed companies that can build up their cash holdings so consistently and so rapidly. Net cash position ( Cash in bank less bank borrowings) is as follows

As of june 2015 RM 170 million
As of june 2016 RM 271 million
As of june 2017 RM 425 million
1st Q 2018 RM 512 million
2nd Q 2018 RM 568 million
3rd Q 2018 RM 645 million
As of june 2018 RM 720 million (projected)

In 2018 financial year cash holding is increasing at average of RM 73.3 million per quarter. The net cash backing per share is about RM 2.00. Actually, accumulating so much cash without any plan for immediate capital expenditure is poor cash management. The excessive cash pile should be returned to shareholders in the form of more generous dividends. The current dividend payout ratio is far too conservative. Management should consider rewarding shareholders and maximizing their share values through a high dividend payout. A generous dividend payout always lead to higher PE awarded.
13/06/2018 20:58
x3mg33 great insight and review @kywoo. I couldn't agree more.
14/06/2018 17:24
x3mg33 ...." Management should consider rewarding shareholders and maximizing their share values through a high dividend payout. A generous dividend payout always lead to higher PE awarded..." This million dollar question deserves some serious answering from management, internal capital expansion albeit at its optimum, can be ruled out given the current market climate, i really do not see the need to sit on so much cash! This is one of the most conservative and well managed counters in KLSE but also the most frugal one when it comes to dividend payout. Dividend policy over the years have been rather obscure.
14/06/2018 17:31
investodiva Why la Quek keep on disposing ?
18/06/2018 15:34
kingJ Another capital reduction excercise coming?
18/06/2018 23:14
investodiva Why say so?
19/06/2018 00:05
investodiva Why say so?
19/06/2018 00:08
Lioncity Accumulate on price weakness.
19/06/2018 11:02


 

208  87  333  1581 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 MI 1.53+0.11 
 SAPNRG 0.615+0.015 
 IRIS 0.155+0.005 
 GSB 0.20+0.015 
 HSI-C3K 0.36+0.02 
 HSI-C3H 0.445+0.02 
 HSI-C3F 0.45+0.015 
 GBGAQRS-WA 0.06-0.01 
 HSI-C3J 0.23+0.01 
 MYEG 1.01+0.03 
Partners & Brokers