Hong Leong Asia - DBS Research 2026-02-27: Earnings Beat Propelled By Powertrain Solutions

• Hong Leong Asia (SGX:H22) FY25 adjusted EPS rose 28.5% y-o-y to 15.08 cents, comfortably exceeding market expectations, while group revenue expanded 22.0% y-o-y to S$ 5.18bn.
• - Read this at SGinvestors.io -

Export-led volume growth, premium product mix and disciplined cost execution in Powertrain Solutions were the principal earning drivers in FY25.

• Truck and bus engine volumes rose materially faster than broader commercial vehicle market growth (Yuchai’s diesel engine sales increased more than 41% vs market growth of only ~5%), implying share gains and strengthened export traction, particularly in heavy-duty categories.
• - Read this at SGinvestors.io -
• Ongoing cost reduction initiatives, scale efficiencies and targeted R&D investment in advanced engines compliant with stricter emission standards (China VII emission standards) further reinforced earnings quality.

Building Materials unit flat despite disruption in ready-mix concrete business in 1H26.

• 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/.

Previous report by DBS:
2025-08-19 Hong Leong Asia - Fuelled By Powertrain Solutions.

Price targets by 2 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