Highlights
KLSE: HLIND (3301)       HONG LEONG INDUSTRIES BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
7.55   +0.06 (0.80%)  7.49 - 7.59  90,400
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Overview

Market Cap: 2,476 Million
NOSH: 328 Million
Avg Volume (4 weeks):65,620
4 Weeks Range:7.39 - 7.77
4 Weeks Price Volatility (%):
42.11%
52 Weeks Range:6.04 - 11.00
52 Weeks Price Volatility (%):
30.44%
Average Price Target: 8.63
Price Target Upside/Downside: +1.08

Financial Highlight

Latest Quarter | Ann. Date 30-Jun-2020 [#4]  |  26-Aug-2020
Next QR | Est. Ann. Date: 30-Sep-2020  |  26-Nov-2020
T4Q P/E | EY: 14.61  |  6.84%
T4Q DY | Payout %: 5.33%  |  77.85%
T4Q NAPS | P/NAPS: 5.1153  |  1.48
T4Q NP Margin | ROE: 9.74%  |  10.10%

Headlines

Date Subject
09-Oct-2020 下跌股:丰隆工业 RM7.13支撑
27-May-2020 Mplus Market Pulse - 27 May 2020
30-Apr-2020 下跌股:丰隆工业RM8.07支撑
11-Apr-2020 下跌股:丰隆工业RM7.64支撑
25-Dec-2019 上升股:丰隆工业阻力RM10.60
11-Dec-2019 下跌股:丰隆工业RM9.64支撑
26-Nov-2019 上升股:丰隆工业阻力RM10.60
14-Nov-2019 Daily Technical Highlights – (CIMB, HLIND)

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.
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  5 people like this.
 
ThePowerOfGlove down 0.53%
12/09/2020 6:48 PM
ThePowerOfGlove lagi tidor juga kah
12/09/2020 6:48 PM
ThePowerOfGlove still hibernating juga kah
12/09/2020 6:48 PM
ThePowerOfGlove apa daah
12/09/2020 6:48 PM
ThePowerOfGlove dont know when going to move
12/09/2020 6:49 PM
ThePowerOfGlove no idea
12/09/2020 6:49 PM
ThePowerOfGlove no clue
12/09/2020 6:49 PM
x3mg33 @puppykitten sales are picking up in most retail businesses as consumers are happy to spend on material purchases in the absence of travel plans and also impulse buying in these depressing times.
also not forgetting the governments initiative in sales tax exemption on motor vehicles to spur the purchases is timely and should see higher sales throughout the rest of the year.

HLYM has been launching new models lately, check out motomalaya on FB yo keep up with the motorcycle launches. What is lacking in the industry is the monthly sales report by names, similar to those done on cars. I can’t find this report crucial in gauging how well the demand for motorcycles and yamaha is in the market. I’m sure there’s such report but have exhausted searches in google and other motorcycle fan pages on FB.

Anyway, the Q2 results come november is the one to look for and to prove our guess in revenge buying is a reality!
12/09/2020 11:02 PM
RainT @x3mg33

you have high confidence with HLIND uh

good...
12/09/2020 11:27 PM
PuppyKitten Thks x3mg33.

https://www.themalaysianinsight.com/s/248165

From the link, we see very strong motorcycle sales in January February, but hit in March due to MCO.

May have seen recovery , and further increment in June.

I m still looking at July data, but same as u, find no where.

Will update again once I have the data on long waiting period.
13/09/2020 9:13 AM
PuppyKitten https://www.motorcyclesdata.com/2020/07/25/malaysia-motorcycles/

Finally I found out that the data in this link are not so accurate .
Data between two link not matched.
13/09/2020 9:20 AM
x3mg33 @puppykitten thanks for the data link, very useful.
i quote the part from the link .....’ In any case, over 60% of the market is in the hands of the two biggest Japanese companies, with the peculiarity that the market leader is Yamaha, not Honda.....’ speaks volume. I wish they have more of such reports available to investors.

@RainT....i have studied and learnt a lot from this company since I started investing in this company back in 2015 and have collected and held positions over the years. I’m no one...but just an ordinary investor who buys into the fundamental strength of what a company can deliver. One can see this through the financial statements. This company has always been shy from the crowd and refused coverage by analysts ( vice versa) due to it’s high price inelasticity. Not many people know of their core business, ie yamaha manufacturer and distributor, as many are still confused other industrial products, eg roofing and ceramic tiles. Therefore, I can only hope in time to come, company restructure exercise to spin-off the irrelevant segments of the company and concentrate on the core business of motorcycle.

Unfortunately the current market is fueled with noise and speculation, the KLSE index is no longer weighted by fundamentals but dominated by the healthcare and gloves sector. I can only be patient and ride through this episode like everyone else.
13/09/2020 10:58 AM
humongainz actually well ran company
13/09/2020 8:07 PM
ykloh Motorcycle is basic transportation for many. Will show far better resilience.
13/09/2020 8:21 PM
PuppyKitten I just called Hong Leong Yamaha.
The answer provided to me is :
1. Production is normal, no disruption, with over time working.
2. Demand is good after MCO.
14/09/2020 3:46 PM
Snowpiercer Non-Quek MDs are all puppet. The family is out of touch with manufacturing. Making billions in banking.
14/09/2020 6:28 PM
reloyee from what i heard from yamaha dealers, the factories are facing production hiccups because of parts supply issues and social distancing in factory resulting in much lower production at least until this year end. this caused the market to have very limited yamaha motors, making the demand for yamaha motors very high because of limited supply
14/09/2020 6:52 PM
kywoo I have done a rough estimate on the profit contribution from the various business sectors of the company for 2019 and 2020. I have to say I cant get 100% accuracy and that is because the company combines the motorcycle business with the ceramic business under consumer business in their financial reporting. It is totally unfair to minority shareholders and the financial reporting is not transparent. Luckily, because we have the 31% minority shareholding in the motorcycle subsidiary we can postulate the profit from the motorcycle business as a whole to the company.
2019 2020 % change
Net Profit to company RM409m RM239m - 42%
Contribution from local motorcycle sales RM273m RM233m - 15%
Contribution from Yamaha Vietnam RM90m RM40m - 56%
Contribution from others(mainly building materials) RM46m (RM34m) NA

So the biggest problem to the company is the building materials sector. Instead of making RM46 million in 2019, it now made a loss of RM34million in 2020. Hence there is a negative impact of RM80 million within 12 months.
Actually, the Vietnam operation is also very disappointing. In the last few years, their business and profits were growing steadily. Suddenly, in 2020 their business just gone down. I hope company will let us know the reasons in coming Annual Report.
The real jewel in the company's business is the local Yamaha motor cycle business. It is currently the market leader with about 42.8%(estimate) market share, hence overtaking Honda. It is still growing both in terms of volume and market share. I understand that their sales are very good in July and August this year because of pent up demand. Remember that there were no production and sales for more than 2 months during the MCO period. Total sales and profits from local motorbike business in coming financial year should be much better.
I really hope the company would be more transparent in their next annual report. Otherwise minority shareholders and potential investors will have to do a lot of guessing work.
14/09/2020 7:11 PM
SilverHawk Kywoo, on last AGM, Mr Chairman said that they will expand the production capacity by 30%. Do u have the status on the expansion ?

If the expansion is completed, and still facing with tight supply, this is a very positive sign.
14/09/2020 8:02 PM
kywoo Based on all previous annual reports I read I understand that the Yamaha factory has excess capacity to increase production by about 30%. I believe that factory has not reached 100% capacity yet. There is no harm to increase production capacity further to anticipate spike in future demand.
15/09/2020 2:14 PM
Sohai Trader Good counter indeed, but the company should consider expanding their businesses with their ample cash in hand. THe companies have been doing a very good job in fortifying their cashflow and I am very impressed with that.

That being said, the company should actively looking for opportunities to expand their businesses, either by acquiring new profitable businesses or trim out those loss-making businesses.

I do have faith in the top management, will definitely find a chance to grill them during the AGM.
15/09/2020 4:46 PM
PuppyKitten If 100% dividend payout, PE will easily shoot to 20 with DY 5%, same like carlsberg heim
15/09/2020 6:58 PM
PuppyKitten Nanyang Siang Pau 20:/9
July Motorcycle sales 58K unit +5.5% yoy
August 51K unit . Almost same last year.

A robust quarter for coming QR !!
22/09/2020 3:20 PM
PuppyKitten Expected profit level around 70M+ EPS more than 22 cents dividend should be able maintain 17 cents. With such QR, price will easily back to 8.++ Level
22/09/2020 3:26 PM
Snowpiercer Get rid of Guocera and Cemboard. Otherwise, will continue to drag.
22/09/2020 9:52 PM
xgxgxg @kywoo and @silverhawk by any chance do you know why is there so little institutional ownership on the company?
22/09/2020 11:02 PM
RainT major 30% share holders already hold around 90% of shares

so how much inst shareholders can hold ....

major boss Quek Leng Chan hold a lot


its good thing actually
25/09/2020 10:51 AM
Onlylonely86 Hi KY,

Thanks for the information. May I know where you get all those data?

Contribution from local motorcycle sales RM273m RM233m - 15%
Contribution from Yamaha Vietnam RM90m RM40m - 56%
Contribution from others(mainly building materials) RM46m (RM34m) NA

I've been searching the data but I'm not able to get it.
Appreciated if you could let me know.
And I'm impressed on your stock selection skills.
27/09/2020 9:26 AM
x3mg33 @puppykitten thanks for sharing the motorcycle sales for august. please can you share the nanyang link here.

i did a search online on motorcycle sales and managed to find MASAAM which is the association for motorcycle production in malaysia. please see the link here for motorcycle production and domestic sales report across all makes. http://www.fami-motorcycle.org/databases/

I have tried to get report by make from MASAAM but did not get a response from them.
27/09/2020 12:35 PM
PuppyKitten I read from hardcopy, can't get the link
27/09/2020 5:10 PM
PuppyKitten 复管期大反弹 摩托销量激增45% | https://www.klsescreener.com/v2/news/view/729817

Here is the link. But only hardcopy newspaper show the figure
27/09/2020 7:22 PM
x3mg33 Thanks for the info @puppykitten.
27/09/2020 8:02 PM
SilverHawk Xgxgxg@ maybe low liquidity is the main factor. QLC related hold about 79% if i m not mistaken
28/09/2020 10:30 AM
xgxgxg That is my concern because founder hold too much interest in HLIND. Although I am very confident in the management and company prospect. But since founder is holding so much stake in the company and the company is holding so much cash which prevent shariah compliant funds acquiring stake in the company, my concern is that founder might try to privatise the company as a whole like he did before. He is also famous for buying companies cheap, so we might not be able to wait until the company is valued fairly in the public market and forced to comply to the lower price he offer if he were to privatised it
29/09/2020 1:03 AM
xgxgxg My hope is that the management is having plans on using their cash either through acquisition since YAMAHA is already a matured cash cow right now which will not grow significantly over the next 10 years since the industry growth is not big enough. There will be many chances in months to come after government supports on business stops. By then, HLIND should be able to identify good companies that is cheap for them to spend their money on. Or they can simply distribute more dividends to shareholders which will be great.
29/09/2020 1:21 AM
DreamCustodian Up 1.08%
29/09/2020 1:21 AM
DreamCustodian Okay also la
29/09/2020 1:21 AM
DreamCustodian Boleh juga la
29/09/2020 1:22 AM
DreamCustodian Very good
29/09/2020 1:22 AM
DreamCustodian Excellent
29/09/2020 1:22 AM
DreamCustodian Well done
29/09/2020 1:22 AM
DreamCustodian Congratulations
29/09/2020 1:23 AM
DreamCustodian Keep it up
29/09/2020 1:23 AM
SilverHawk xgxgxh@ I personally prefer company to spin off all other non Yamaha business, and fully focus on Yamaha. If so, dividend payout maybe will come to nearing 100%. Valuation in single business and full profit payout will be completely different from now.
On acquisition, not so easy to get a good business.
HL group good performing sector is only on Banking, Yamaha, Semiconductor. The rest is performing very badly.
29/09/2020 9:39 AM
kywoo Very well said SilverHawk. As far as Hong Leong Ind is concerned, just focus on the motorcycle business and dispose of all the building materials business. Too diversified a company is not necessary a good thing especially when company did not have a CEO for sometime. Furthermore be generous with dividend payout and the share price will fly.
29/09/2020 8:38 PM
limkokthye https://www.youtube.com/watch?v=A4Oarmtq3B0 (klci will be 0 soon)
29/09/2020 11:03 PM
PuppyKitten I email Yamaha as shareholder and they reply me as customer. Below are the reply :

Dear Customer,



Thank you for contacting Hong Leong Yamaha Motor Sdn. Bhd.



Our customer demand are higher than our expectation.



The manufacturing team are working their best to meet these demands and our production is also depending on the supplies from all of our authorized vendor.



The average waiting time could be up to 2 or 3 month, differs by the location as well as the customer waiting list for each shop. You probably could also check on the customer waiting list with a respective shop.





We appreciate and thank you for your interest towards Yamaha Product Range.

Thank you for your understanding.
30/09/2020 6:08 PM
paulthesotong I RAN....
03/10/2020 3:40 PM
limkokthye hli=holland industries, waiting to die company
07/10/2020 2:55 PM
Snowpiercer In a way, poor management team
13/10/2020 5:44 PM


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