Hong Leong Asia - DBS Research 2024-10-11: Capture China’s Upgrade Momentum

• We reinstate coverage of Hong Leong Asia (SGX:H22) with BUY , target price S$ 1.28, equating to potential upside of ~50% from the current Hong Leong Asia's share price.
• - Read this at SGinvestors.io -
• building materials segment supporting the regional construction industry.

Trading at attractive valuations.

• Our Hong Leong Asia's target price of S$1.28 is based on a sum-of-the parts valuation (SOTP) methodology:
  • - Read this at SGinvestors.io -
  • 8x P/E for building materials division, and
  • market value for its ~20% stake in BRC Asia (SGX:BEC).
• At the current Hong Leong Asia's share price of S$ 0.82/share, the stock is trading at a forward P/B of 0.6x, which is attractive given that Hong Leong Asia is on the cusp on an earnings upswing, generating a return on equity towards ~9.0%.

Earnings on an upswing; potential for a dividend surprise.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-02-27 Hong Leong Asia - Powering Ahead Across All Business Units.

Price targets by other brokers at Hong Leong Asia Target Prices.

Listing of research reports at Hong Leong Asia Analyst Reports.

Relevant links:
Hong Leong Asia Share Price History,
Hong Leong Asia Announcements,
Hong Leong Asia Dividend Payout Dates & Corporate Actions,
Hong Leong Asia News