Hong Leong Asia - Revving Up For A Stronger Ride In 2022
- Hong Leong Asia (SGX:H22)'s 2H21 core PATMI of S$19.3m (-37% h-o-h, -22% y-o-y) was in line. Yuchai saw weaker sales post pre-buying ahead of Jul’s new engine standard implementation. Hong Leong Asia proposed full year dividend of S$0.02 (vs. FY20: S$0.01 per share), indicating 2.5% dividend yield.
- Maintain ADD call on Hong Leong Asia. we believe the worst is over for Hong Leong Asia, and expect sequential earnings recovery ahead for both of its key segments.
- We forecast building materials unit to record 27% profit before tax (PBT) growth in FY22F on the back of recovery in construction activity in Singapore.
- Diesel engines unit (Yuchai) should also see sequential volume and margin recovery in coming quarters as industry sales gradually normalise.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-08 2022-03-08
Previous report by CGS-CIMB:
2021-08-30 Hong Leong Asia - Acquiring 20% Stake In BRC Asia
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