HONG LEONG INDUSTRIES BHD
KLSE (MYR): HLIND (3301)
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Last Price
10.80
Today's Change
-0.08 (0.74%)
Day's Change
10.70 - 10.88
Trading Volume
6,700
Major Holders Breakdown
Current Holdings
Name
No. of Shares
Percentage
DATO TING HENG PENG
12,000
40.00%
DATO TING HENG PENG
12,000
40.00%
DATO TING HENG PENG
12,000
40.00%
Historical Transactions
| From | To | Type | No. of Shares | Min Price | Max Price |
|---|
Discussions
7 people like this. Showing 50 of 2,559 comments
Offseason now bro. Now back in Argentina for holiday and following HLI from here. Thinking of dumping all my money into this undervalued gem. The ringgit is so cheap also. What say you bro? Cheers.
2023-11-15 11:16
Hi Lionel, to be frank, that is not a good idea. While HLIND is undervalued, don't put more than 5% of your wealth in this stock. Otherwise your money will be controlled by HLIND instead of you controlling your money. You know what I mean. Diversify your investment into equally good alternatives to preserve your freedom and peace of mind. I agree with you that we should sit back, read the coming quarterly report which I think earning will be decent, and see how much dividend is to be announced. For the time being, the best thing to do is probably doing nothing and guess the amount of interim dividend that is coming soon.
2023-11-15 22:12
Here are my other thoughts:
1. Sources say that HLIND is preparing to get involve in global EV business, partner with someone (probably to have access to the technology required). Well, I think this is not surprising because the big guy is not doing charity paying over 3 million ringgit a year to the managing director to sit there running "grocery business".
2. So far the expansion of the 400 mil RM new tile plant has nothing contracted. What I think is that HLIND might have a more attractive alternative / option so this is put a side and might finally be cancelled to give way to that more attractive investment.
3. Whether or not the 400 mil RM tile plant is to be materialised, tile demand is growing and will gain traction because Indonesia is moving to a new capital (East Kalimantan). This will spur the demand for high quality tiles and West Malaysia has the advantage as a close supply to the construction site.
That's are my 2 cents.
2023-11-15 22:25
Hong Leong Industries Bhd expects a successful financial year as motorcycle demand rebounds.The company recorded a net profit of RM87.67 million in the first quarter ending Sept 30, 2023.https://www.instagram.com/p/Cz2tE0hhKn8/?img_index=1
2023-11-24 15:10
Fabien _the efficient capital allocator
HLI wishes to inform that the Proposed Disposal of HCB has been completed today. Upon completion, HCB has ceased to be a subsidiary of HLI.
The Proposed Disposal was completed for an Estimated Purchase Price of RM76.13 million.
2023-12-07 20:21
HLI disposed HLI Trading Limited to a related party. This came after the disposal of Hume Cemboard Industries 6 months ago
2023-12-12 18:33
Why HLI not moving like UP?
Sardin
Hi Lionel, I shifted my focus and got too immersed in UP.
3 weeks ago
2023-12-28 09:40
Just collect the almost 60 sen dividend every year for a yield of above 6% and sit patiently. Stock market is not just a stock picking game. It is also a waiting game.
2023-12-29 14:29
Easy peasy. Just work hard and grow your day job. Good stocks will take care of itself.
2024-01-09 09:50
Here are my other thoughts:
1. Sources say that HLIND is preparing to get involve in global EV business, partner with someone (probably to have access to the technology required). Well, I think this is not surprising because the big guy is not doing charity paying over 3 million ringgit a year to the managing director to sit there running "grocery business".
2. So far the expansion of the 400 mil RM new tile plant has nothing contracted. What I think is that HLIND might have a more attractive alternative / option so this is put a side and might finally be cancelled to give way to that more attractive investment.
3. Whether or not the 400 mil RM tile plant is to be materialised, tile demand is growing and will gain traction because Indonesia is moving to a new capital (East Kalimantan). This will spur the demand for high quality tiles and West Malaysia has the advantage as a close supply to the construction site.
That's are my 2 cents.
Hi Sardin, may I know why do you think the Tile business will improve? Any insights on this business/industry?
2024-01-11 17:47
Welcome Harry. You are in a good place. Yes, Sardin is a great guru. Would love to hear from him but he may have found an even better place. We are on our own now. Can only hold on to his past wisdoms. But stick around. May turn out to be a gem.
2024-01-15 08:52
Fabien _the efficient capital allocator
3 billion market cap company. of which 1.6 billion net cash. generates 280-300 million annual profit. very profitable company at cheap valuation. HOLD.
2 months ago
Cool. Meantime just shake legs and collect the decent yearly dividend. Life is peaceful as it should be.
2 months ago
Fabien _the efficient capital allocator
Wait for management to sell their non-core assets of Guocera tiles business and more bumper dividends for us.
2 months ago
Fuiyoh .... 50 sen special dividend beat my expectations so, so, nicely!
Total dividend this year is now 70 sen. At current price of 9.57, that's still easily above 7% dividend yield.
I am applauding management and the board for not hoarding the cash!
Bravo HLIND!
2 months ago
@raider, you echo my thoughts - double before 5 years is a majority scenario in my book too, especially after this Special Dividend landmark decision. For the first time, in a very long time, HLIND finally decided to share more of its cash with shareholders. Truly landmark.
Now is only Q2, and total dividends 70 sen, highest ever (at least past 10 years).
Nice increase from the previous 57 sen too.
This is how dividends should be managed.
Hence, can recommend higher than neutral position for long term investment.
If the price fall, you'll find me there to support and accumulate to be higher than neutral.
2 months ago
The Board deserves praise for returning unused capital to shareholders through special dividend of 50 sen.
The total amount of special dividend is about RM157m, which is greater than the proceeds from disposal of HLIT (~RM36m) and HCB (~RM80m). But RM157m is only a small fraction of the latest company net cash at RM1.7b
As I’ve commented earlier, the share price will re-rate upwards if the Board returns more cash to shareholders. Today share price movement has just confirmed the point.
To reiterate my earlier comments, let’s compare against Bermaz Auto, which is probably the best run automotive local company. BAuto trailing twelve month revenue was about RM4b, supported by a net cash position of about RM400m, or about 10% of annual revenue.
Applying the same standard, HLI’s annual revenue of about RM3b needs only about RM300m of net cash as working capital. It could safely return RM1.7b - RM300m = RM1.4b of cash to shareholders without affecting its business operations. That works out to be about RM4.5 cash per share.
According to Kenanga, the passenger vehicle sector’s average forward PE is about 11 times. Applying this average, the share price is still worth 11 x RM0.927 (Kenanga’s 2024F EPS) = RM10.2.
In other words, if the Board is willing to put cash to better use, conservatively the share price could be RM10.2 plus special dividends of RM4.5! This has not even taken into account of HLI’s dominant market position. Besides, by showing it cares about minority shareholders' interest, it could enjoys an even higher PE multiple.
Moving forward, I hope the Board could give greater clarity to shareholders and the market how it would best utilise its cash.
2 months ago
Fabien _the efficient capital allocator
They can return more cash to shareholders. They have abandoned their plan to expand Guocera tiles business. Looking at this, it's more likely they will dispose of this non core assets following recent disposals. Their annual operating cash flow amounts to at least RM500mil. This is enough to fund their entry into auto spare parts business.
2 months ago
@Fabien, may I know where did you get the announcement that they abandoned the Guocera expansion plan?
2 months ago
HLIND closed 10.94, touches 11, +2.24% after ex-div 50 sen dividend recently. What an amazing counter. Thanks for HLIND and 22 other green stocks to offset 12 red stocks, my portfolio made all time high again today! Thank-you Mr Market!
4 weeks ago
Congrats! This is really a good counter and a wonderful business. Let's all make money from here.
3 weeks ago
Is the big boss going to be stingy or generous in paying final dividend this time? I hope all the loyal shareholders get what they deserve. We don't mind the CEO to get a good pay but other shareholders should be rewarded also and given a FULL AND FAIR share of the profit in the form of dividend.
2 weeks ago
This counter trading volume is very low and because of this its share price is depressed and this put minor shareholders in great disadvantages. I think the major shareholder should take care of the minor shareholders by making the share price to be at least reflecting the value of the business. This can be done by simply paying higher regular dividend as all the business under HLIND are already at matured and saturated stage. Holding back too much money is not fair to minor shareholders. This monies belong to every shareholders and so please pay it out.
2 weeks ago
Welcome back Sardin. Spot on. We missed your wisdom and guidance. Hope you stay for a long time.
2 weeks ago
Invest while the forum is quiet. How to maximize return? Be the early birds that discover the change of wind, and take actions. Stingy boss? Becoming generous boss? Time will tell. Will patience be rewarded? Will trust be disappointed? Time will tell. It could be never happen, or it could be really soon. The waiting is the suffering that you need to pay to be in the game.
1 week ago
Looks like it's only you and me @Sardin. Quiet is good. Can collect discreetly. Calm before the rush to above RM11. Need to suffer the waiting as you said. Cheers.
1 week ago
Another one month or two it will become "tourist spot" and re-pricing to RM 15 within 2 years. If Guocera is sold off then this will happen sooner.
6 days ago
Is RM11 possible? What could potentially drive share price above RM11?
Look no further than the the effect of 50 sen special dividend announced on 21 Feb.
Just a few days before the announcement, the share was traded at around RM9.4. But share price closed at RM10.3 on the day after the announcement. It was a 90 sen gain on 50 sen dividend announcement.
On 26 Mar just before the ex-date, the share price closed at RM10.7, representing RM1.3 gain.
In other words, the 50sen special dividend announcement has moved the share price higher by RM0.9 to RM1.3.
What has actually happened?
By reducing its cash, which earns a mere 3% bank interest, the company has actually become more valuable. The company intrinsic value has increased even though its cash balance has become smaller!
It shows all the while the market has been quite rational. It discounts excessive cash held on the company’s balance sheet.
Before the special dividend announcement, every excess RM1 cash is probably valued at just 20 sen. In other words, the net cash per share of RM5.4 before SD distribution contributed just RM1 to the share price.
But when the company signaled a change in attitude by returning 50 sen to shareholder, the market started to value its cash balance higher. Each RM1 in cash was now valued at probably 40sen, i.e. the RM5.4 net cash per share was valued at RM2.1, moving the share price higher by RM1.1.
Comes next quarterly report, if the company were to announce a 39 sen regular dividend + another 50 sen special dividend, not only will share price go above RM11, it may even go beyond RM12 as the market values its cash even higher.
Instead of hoping for market action, we have to hope for the company action!
4 days ago
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Sardin
I thought you were focussing on american football
2023-11-15 09:54