Hong Leong Asia - DBS Research 2026-03-30: Rising Costs Remains A Concern But Have Mostly Been Passed On

• We hosted Hong Leong Asia (SGX:H22) in our Jewels of Singapore conference with investors on 27 March 2026.
• Key takeaways:

Powertrain Business

• - Read this at SGinvestors.io -
• While domestic demand in China is mixed, the company continues to gain share, aided in part by government incentives encouraging the replacement of older vehicles.

Key earnings driver is the generator segment, particularly used for data centres

• A key earnings driver is the generator segment, particularly used for data centres, where average selling prices can be up to 25 times higher than a typical engine (~RMB50,000). Although volumes remain relatively small, the significantly higher margins have driven outsized profitability, contributing to the ~60% growth in earnings for China Yuchai last year.
• - Read this at SGinvestors.io -
• The planned Hong Kong listing of the generator business remains in progress (currently at the A1 stage), representing a potential medium-term value unlock.

Building Materials Business

• 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:
2026-04-22 Hong Leong Asia - Accretive Acquisition Of A Singapore Household Brand In Architectural Products.

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