HONG LEONG INDUSTRIES BHD

KLSE (MYR): HLIND (3301)

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Last Price

8.90

Today's Change

-0.07 (0.78%)

Day's Change

8.90 - 8.95

Trading Volume

21,200

Overview

Market Cap

2,918 Million

NOSH

328 Million

Avg Volume (4 weeks)

102,856

4 Weeks Range

8.70 - 9.16

4 Weeks Price Volatility (%)

43.48%

52 Weeks Range

8.57 - 9.90

52 Weeks Price Volatility (%)

24.81%

Previous Close

8.90

Open

8.95

Bid

8.90 x 300

Ask

8.95 x 2,100

Day's Range

8.90 - 8.95

Trading Volume

21,200

Financial Highlight

Latest Quarter | Ann. Date

30-Sep-2022 [#1] | 24-Nov-2022

Next QR | Est. Ann. Date

31-Dec-2022 | 23-Feb-2023

T4Q P/E | EY

9.99 | 10.01%

T4Q DY | Payout %

5.93% | 59.20%

T4Q NAPS | P/NAPS

6.08 | 1.46

T4Q NP Margin | ROE

12.34% | 14.65%

Company Profile

Sector: CONSUMER PRODUCTS & SERVICES

Sector: CONSUMER PRODUCTS & SERVICES

Subsector: AUTOMOTIVE

Subsector: AUTOMOTIVE

Description:

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.

Discussions
5 people like this. Showing 50 of 2,315 comments

zzprozaz

Sardin, do you know when will Hlind raise their ASP of yamaha motorcycle? Is it raised already?

2022-03-01 15:10

Sardin

@zzprozaz, raised already, more than enough to cover cost hike and prosperity tax and profit increase if monthly TIV maintain above 40,000.

2022-03-04 15:02

zzprozaz

Sardin, where to know yamaha motorcycle ASP raised already? Any news?

2022-04-16 12:35

stockraider

Min pay Rm 1500....more people can afford motor loh!

Good for HL Ind loh!

2022-04-17 14:23

stockraider

Also Yen cheap...better margin for motorcycle loh!

2022-04-17 14:24

Sardin

That was the first time. 2nd time is this https://www.zigwheels.my/new-motorcycles/yamaha

2022-04-22 18:12

DickyMe3

Post removed.Why?

2022-06-08 21:22

RWG

this counter look very stable, even klci drop like shit

2022-06-13 18:10

Sardin

Not surprising with defensive business and good dividend yield.

2022-06-30 15:00

Sardin

It is accumulating energy and momentum to revisit RM9 or higher. This may happen by end of Aug.

2022-06-30 15:01

Sardin

It has now happened for quite some time. With recent Q4 result I think the price will inch slowly towards RM 10 till the announcement of next quarter result. For the share price to grow to RM 10, it requires annual EPS of close to RM 1 and annual dividend that is close to 60 sen, in view of rising interest rate environment and trend.

2022-08-19 18:42

Fabien _the efficient capital allocator

EPS at RM1, you are implying PE of 10x. HLI has always trade above 10x multiple because if you striped out their net cash (which is about 50% of market cap), it's ex-cash PER is less than 7x.

2022-08-19 19:56

Sardin

I'm trying to be conservative

2022-08-22 17:41

alexnada

Anyone have any idea why the sudden jump? insider news?

2022-10-26 17:51

Sardin

Hi Alexnada, because it is going to show record high of quarterly revenue (quite sure) and EPS (>50% sure) in the quarterly report that is to be released soon. And looking at the share price pattern, I suspect someone is trying to put a ceiling in order to collect more tickets from impatient shareholders before the good news is finally released.

2 months ago

Sardin

When the coming quarterly result is finally announced, the share price has a possibility to reach RM 10.

2 months ago

Sardin

The sales was boomed by re-opening of Malaysia-Singapore borders. In mid-term future, the sales of motorcycles will be supported by rising car prices and B40's weaker affordability for car.

2 months ago

Sardin

Floating tickets are drying up. Share price will be lifted up like the hungry alligator jumping out from the water.

2 months ago

Sardin

High energy prices in Europe makes our tiles more competitive in international market. Don't forget that Italy and Spain are top 5 export countries in the world. They are both hit with high energy cost and yet their sales are intact, that shows how high is the demand.

1 month ago

lionel messi

Sardin, what was the above Nanyang article all about? I can't read chinese.

1 month ago

Sardin

Hi Messi, just use Google translate. I think Google can translate better than I do. :)

1 month ago

Sardin

Basically it says that record motorcycle sales (Malaysia) observed in 2022.

1 month ago

lionel messi

Thanks Sardin. Am just an uncle and very tech cacat. Don't know how to use Google translate. Notice you are very in tune with this counter. I love everything about this counter too. Fundamentally sound, high div, small cap, well managed, price relatively stable and wonderful prospect. Keep sharing important news. Current price level is quite value for money I think. Better yield than any fixed deposits. Cheers.

1 month ago

ykloh

highly illiquid

1 month ago

Sardin

Hi Messi, according to the above news, 700,000 motors could have been sold in Malaysia in 2022. I think the real figure is above 680,000 or around that. In addition to that HLIND is planning to build 400 mil new porcelain plant (Guocera expansion) and complete it by end of 2024. I believe this will be funded internally and only costs a fraction of its net cash. Though HLIND did not disclose the IRR but I expect this to result in the increase of EPS by above 10 sen annually. Although main markets might be heading to recession but energy crisis in Europe for the present and coming years might be a golden opportunity for high energy consumption industry in Asia such as Malaysia which has the access to both the advanced technology to meet EU standard and cheaper energy prices.

1 month ago

Sardin

Hi Ykloh, the price of this stock is very sensitive to the dividend amount. A small increase of dividend will cause the price to grow significantly. This is also partly due to its lower floating tickets (which is reflected by its lower trading volume also). One year later you might want to recall this.

1 month ago

lionel messi

Thanks Sardin, really great info. You are really an expert in this counter. I am hoping they will deckare a rights and bonus issue in the near future. More liquidity so that can buy more into it cheaper.

1 month ago

Sardin

I feel that HLIND is led by management and owned by major shareholder who are focussing on the profitability and stability of the business only rather than market cap and liquidity of the share. I don't think they would even spend a night to think about bonus issue. But higher ordinary dividend and a better than history special dividend is something more likely to happen. The large pile of cash, I predict that it would be released in next 5 years either in the form of dividend or business expansion (e.g. the plan to expand Guocera). The reason is very simple, if you can't find a good investment opportunity even in a recession, why continuing holding the cash beyond the reasonable level? Other than that I actually hope one day Hong Leong Yamaha and Guocera can be listed seperately to maximize the total market cap. I just don't see the synergy and value to put motorcycle and tile business under the same group. It is currently being like that probably because Guocera is not big enough to be justifiable as a seperate listed company but this could be different when the RM 400 mil expansion takes place. It is about two times the current property, plant and equipment of the Group.

1 month ago

lionel messi

Great insights Sardin. Sounds logical and make a lot of sense. I vaguely remember few years back there were talks of HLI being taken private. Is this still likely to happen. I suspect it's very possible looking at the past modus operandi of Quek Leng Chan. Love to hear your views on this.

4 weeks ago

Sardin

He could have thought of that when he was much younger. If he did recently, he had just lost a good opportunity to do so in last year when HLIND was hit by pandemic and stock price dip unreasonably. Now the industry is experiencing strong rebound. The earning in current fiscal year has a very good chance to break record high. It was hard and is only going to be harder to privatise this company. My personal view is that HLIND is still too small to worth his energy, time and patience to do so. I think he'd only pick the big game like Guoco eventhough he failed at last. At the age of 82, I don't think he has the time and need to do this either. The best choice is to cheer with minority shareholders and make everyone happy like the late Tan Sri Teh did.

4 weeks ago

lionel messi

Thanks Sardin. Although I don't fully concur with your views of their possible privatisation but nevertheless, taking the cue from your bullish earnings projection I better load up more of this counter. On hindsight one year down the road, should be a bargain at present value. Have a happy and prosperous CNY.

4 weeks ago

lionel messi

Sardin, who has the bigger market share? Boon Siew Honda or Hong Leong Yahama?

4 weeks ago

Sardin

In Malaysia, Yamaha has the biggest market share and it has been so for years.

3 weeks ago

lionel messi

Thanks Sardin for the valuable info.

3 weeks ago

stockraider

This is the best bluechip u can buy loh!

3 weeks ago

observatory

In light of Hong Leong Industries's ambition to expand its cemaric manufacturing capacity, I checked out a few global leading companies.

Apparently Mohawk Industries is the world largest flooring company. 2022 revenue was about USD12 billion (about 1/3 contributed by global ceramic segment). Past 5 year operating margin and ROE are about 10% and 11% respectively.

In our region Thailand SCG Ceramics is number 3 in the world. Past 5 year operating margin and ROE are about 5% and 4% respectively.

From the casual check, ceramic tile business does not seem to be overly exciting. My guess is it also ties to global housing producion. Next few years will not be an exciting period, to say the leasat, given housing market has cooled in many countries due to higher interest rate.

Yes I believe Spain manufacturers will suffer from higher energy price. However for time being European gas price has returned to pre-war level. Of course higher energy prices may return later this year. But European energy crunch may sort itself out by the time HLI completes its manufacturing expansion.

Perhaps a more important consideration is the coming EU's carbon border adjustment mechanism. A high tech low energy consumption plant may offer advanatges against older plants by competitors.

But overall I'm not terribly excited by ceramic tile business as compared to the already proven motorcycle business. It's better for the management to return the RM400m cash to shareholders if it cannot achieve a double digit return.

3 weeks ago

Sardin

What I hope the most is payout the 400 mil to us. If they do not want to pay out, then better invest in something with 10% IRR or higher. The worst is to keep the 400 mil until our last day.

2 weeks ago

Sardin

After Ukraine - Russia war, a lot of tiles may be needed for rebuilding the country.

2 weeks ago

lionel messi

Plenty of cheap tickets these few days. Fantastic opportunity to buy into a quality company cheap cheap.

1 week ago

Sardin

This counter needs a lots of patience. Put only a little bit of chips on this counter so that you don't run out of patience.

1 week ago

stockraider

Yamaha bikes selling very well mah!

Should do well loh!

1 week ago

lionel messi

So cheap. Fantastic.

1 week ago

Sardin

I think lots of shareholders are afraid of the investment in Guocera expansion. The plan is still a proposal that has not yet been decided, as far as I know. I somehow have the feeling that this plan will not be materialised in the end and annual dividend payout will increase to 65-70 sen per year. If the expansion is cancelled, if I were Tan Sri Quek, I might consider to sell Guocera away, and the proceed and the accumulated cash pile will be distributed out, at least partially, to a healthy level.

1 week ago

lionel messi

Agree Sardin. But fear is an opportunity to buy into a good company at cheap prices. Personally, I am indifferent to the Guocera expansion. Am sure they have done all the maths. Just their in house usage of tiles by Guoco is already sufficient. no need to sell to third parties.

1 week ago

Sardin

I once thought that release of this news could stir up fear in some investors and that will create a buy opportunity. Looks like that now.

1 week ago

Sardin

But I think this dip of confidence will not last long due to what is going to happen:
1. Announcement of excellent Q2 result by end of Feb (I predict Q2 EPS to be around 25 sen)
2. Those scared investors will realise that the cash to invest in Guocera is only about a quarter of the total cash accumulated.
3. Higher final dividend to be announced in May
4. Once the new plant is completed and operate by end of 2024, EPS will increase. And when EPS increases, dividend payout is likely to increase to keep the same payout ratio. The effect of higher EPS and dividend that occur at the same time is likely to make a double strike on the share price where market will re-rate this stock at higher PE.
So any investor who want to invest in this counter should wait for the above four events to complete, and decide later whether it is worthy to hold on to the share after the predicted rise in mid or late 2025.

1 week ago

Fabien _the efficient capital allocator

Added more today. cheers!

1 week ago

Sardin

Hi Lionel Messi, how much net profit you think Guocera contributed to FY2022?

2 hours ago

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