Hong Leong Asia (SGX:H22)’s 2H25 revenue and PATMI jumped 26.2% and 48.6% y-o-y to S$2.5b and S$56.8m, respectively, supported by robust growth across both the Powertrain Solutions and Building Materials segments.
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Firing on all cylinders.
FY25 EPS was 28.5% higher at 15.08 Singapore cents per share. This was below consensus estimates – perhaps partially explaining the negative share price reaction post-results – but exceeded our expectations by 6.4%.
Hong Leong Asia's dividends per share (DPS) for the year was 25% higher at 5 Singapore cents, marking the second consecutive year of increase. The final dividend of 3 Singapore cents per share is payable on 15 May 2026, subject to shareholders’ approval.
Powering ahead.
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On the top line, volumes grew 28.7% y-o-y to 210.9m units, underpinned by broad-based demand across the on-road segment (+42.8%), as well as industrial and marine and genset applications (+24.0%). Notably, volume growth in the on-road segment far exceeded vehicle market sales growth of 4.5% as reported by the China Association of Automobile Manufacturers, suggesting that China Yuchai International Ltd (CYI) has been successful at increasing its market share.
On the bottom line, CYI reported FY25 gross margins of 16.5% (FY24: 14.7%) on a change in sales mix (towards heavy-duty and high horsepower powertrains), economies of scale, and cost optimisation initiatives.
The proposed listing of CYI’s principal subsidiary (MGP) on the Hong Kong Stock Exchange remains underway.
Construction upcycle continues.
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Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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