Hong Leong Asia - UOB Kay Hian 2024-12-13: Undervalued Gem Backed By A Strong Positive Outlook

• Hong Leong Asia (SGX:H22) is set to post strong earnings growth for 2024-26, driven by its two main segments.
  • With significant market share across its key markets, the building materials segment faces a robust pipeline of mega infrastructure and HDB projects.
  • - Read this at SGinvestors.io -
• In our view, Hong Leong Asia remains undervalued given the positive outlook for its businesses.

Robust growth & demand.

• The Building and Construction Authority (BCA) reports that total construction demand is expected to reach S$31b-38b by end-24. This upward trend is primarily driven by the public sector, with anticipated HDB projects and upcoming infrastructure projects such as the development of Changi Airport Terminal 5, Tuas Port developments, contracts for phase two of the Cross Island Line and expansions to the Integrated Resorts in Marina Bay Sands.
• - Read this at SGinvestors.io -
• With significant market share in both key markets, a strong pipeline of both public and private sector projects would benefit Hong Leong Asia’s building materials unit (BMU) segment, serving as a strong proxy for the construction sector, in our view.

Diversified and innovative portfolio.

• Read more at SGinvestors.io.

Llelleythan Tan UOB Kay Hian Research | John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-12-13 SGinvestors.io

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