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Hong Leong Finance

SGX:S41
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
S41
SGX
SGD985M
Market Cap
  1. Home
  2. SG
  3. Diversified Financials
Company description

Hong Leong Finance Limited provides various financial services for business enterprises and retail customers in Singapore. The last earnings update was 41 days ago. More info.


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S41 Share Price and Events
7 Day Returns
0.9%
SGX:S41
-1.2%
Asia Consumer Finance
3.4%
SG Market
1 Year Returns
-22.3%
SGX:S41
-29.6%
Asia Consumer Finance
-23.9%
SG Market
S41 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hong Leong Finance (S41) 0.9% -12.2% -18.2% -22.3% -22.6% -17.2%
Asia Consumer Finance -1.2% -32.5% -34.2% -29.6% -14.5% -5.5%
SG Market 3.4% -15% -22.3% -23.9% -24.6% -30.1%
1 Year Return vs Industry and Market
  • S41 outperformed the Consumer Finance industry which returned -29.6% over the past year.
  • S41 outperformed the Market in Singapore which returned -23.9% over the past year.
Price Volatility
S41
Industry
5yr Volatility vs Market

Value

 Is Hong Leong Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hong Leong Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hong Leong Finance.

SGX:S41 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= SGD4.14 * 5.6%
SGD0.23
Book Value of Equity per Share Median Book Value from the past 5 years. SGD4.14
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year SG Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:S41
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 5.4%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.639 (1 + (1- 17%) (4.55%))
1.328
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.75% + (1.328 * 5.44%)
8.98%

Discounted Cash Flow Calculation for SGX:S41 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Hong Leong Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SGX:S41 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (5.6% – 8.98%) * SGD4.14)
SGD-0.14
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= SGD-0.14 / (8.98% - 1.75%)
SGD-1.96
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= SGD4.14 + SGD-1.96
SGD2.18
SGX:S41 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD2.18
Current discount Discount to share price of SGD2.16
= -1 x (SGD2.16 - SGD2.18) / SGD2.18
0.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hong Leong Finance is available for.
Intrinsic value
1%
Share price is SGD2.16 vs Future cash flow value of SGD2.18
Current Discount Checks
For Hong Leong Finance to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hong Leong Finance's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Hong Leong Finance's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hong Leong Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hong Leong Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:S41 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in SGD SGD0.23
SGX:S41 Share Price ** SGX (2020-04-08) in SGD SGD2.16
Asia Consumer Finance Industry PE Ratio Median Figure of 182 Publicly-Listed Consumer Finance Companies 8.18x
Singapore Market PE Ratio Median Figure of 389 Publicly-Listed Companies 10.55x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hong Leong Finance.

SGX:S41 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:S41 Share Price ÷ EPS (both in SGD)

= 2.16 ÷ 0.23

9.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hong Leong Finance is overvalued based on earnings compared to the Asia Consumer Finance industry average.
  • Hong Leong Finance is good value based on earnings compared to the Singapore market.
Price based on expected Growth
Does Hong Leong Finance's expected growth come at a high price?
Raw Data
SGX:S41 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
Asia Consumer Finance Industry PEG Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 0.55x
Singapore Market PEG Ratio Median Figure of 128 Publicly-Listed Companies 1.06x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Hong Leong Finance, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hong Leong Finance's assets?
Raw Data
SGX:S41 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in SGD SGD4.28
SGX:S41 Share Price * SGX (2020-04-08) in SGD SGD2.16
Asia Consumer Finance Industry PB Ratio Median Figure of 232 Publicly-Listed Consumer Finance Companies 0.6x
Singapore Market PB Ratio Median Figure of 614 Publicly-Listed Companies 0.6x
SGX:S41 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:S41 Share Price ÷ Book Value per Share (both in SGD)

= 2.16 ÷ 4.28

0.5x

* Primary Listing of Hong Leong Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hong Leong Finance is good value based on assets compared to the Asia Consumer Finance industry average.
X
Value checks
We assess Hong Leong Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Hong Leong Finance has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hong Leong Finance expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.2%
Expected Consumer Finance industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hong Leong Finance expected to grow at an attractive rate?
  • Unable to compare Hong Leong Finance's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Hong Leong Finance's earnings growth to the Singapore market average as no estimate data is available.
  • Unable to compare Hong Leong Finance's revenue growth to the Singapore market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SGX:S41 Future Growth Rates Data Sources
Data Point Source Value (per year)
Asia Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 18.2%
Asia Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 18.9%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 4.7%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:S41 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:S41 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 121
2020-04-08
SGX:S41 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-12-31 214 -1,349 103
2019-09-30 216 -1,073 102
2019-06-30 231 -652 115
2019-03-31 232 75 119
2018-12-31 230 -252 118
2018-09-30 226 -403 117
2018-06-30 208 -973 104
2018-03-31 198 -866 95
2017-12-31 186 -287 86
2017-09-30 172 26 76
2017-06-30 159 640 65
2017-03-31 149 566 55

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Hong Leong Finance is high growth as no earnings estimate data is available.
  • Unable to determine if Hong Leong Finance is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:S41 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Hong Leong Finance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:S41 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.27 0.27 0.27 1.00
2020-04-08
SGX:S41 Past Financials Data
Date (Data in SGD Millions) EPS *
2019-12-31 0.23
2019-09-30 0.23
2019-06-30 0.26
2019-03-31 0.27
2018-12-31 0.27
2018-09-30 0.26
2018-06-30 0.23
2018-03-31 0.21
2017-12-31 0.19
2017-09-30 0.17
2017-06-30 0.15
2017-03-31 0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Hong Leong Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Hong Leong Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hong Leong Finance has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hong Leong Finance performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hong Leong Finance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hong Leong Finance's year on year earnings growth rate has been positive over the past 5 years.
  • Hong Leong Finance's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hong Leong Finance's 1-year earnings growth is negative, it can't be compared to the Asia Consumer Finance industry average.
Earnings and Revenue History
Hong Leong Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hong Leong Finance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:S41 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 214.16 103.09 75.75
2019-09-30 216.37 102.37 79.80
2019-06-30 230.55 115.45 78.42
2019-03-31 231.81 118.73 78.51
2018-12-31 230.35 118.34 75.84
2018-09-30 225.71 116.88 78.63
2018-06-30 208.38 103.77 75.31
2018-03-31 197.89 95.08 71.19
2017-12-31 185.75 85.69 70.43
2017-09-30 172.00 75.58 68.54
2017-06-30 159.35 64.81 68.31
2017-03-31 148.54 54.98 69.38
2016-12-31 148.31 53.07 70.66
2016-09-30 164.21 64.87 71.80
2016-06-30 171.55 68.92 74.67
2016-03-31 177.66 71.84 76.36
2015-12-31 178.61 72.86 76.60
2015-09-30 169.40 66.32 73.11
2015-06-30 165.07 63.82 71.90
2015-03-31 162.29 63.93 70.26
2014-12-31 159.65 62.80 69.61
2014-09-30 158.04 60.33 71.95
2014-06-30 163.50 65.92 71.18
2014-03-31 166.36 69.26 70.47
2013-12-31 167.35 70.08 69.84
2013-09-30 166.22 81.73 68.17
2013-06-30 161.28 78.77 66.39

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hong Leong Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hong Leong Finance used its assets less efficiently than the Asia Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Hong Leong Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Hong Leong Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hong Leong Finance has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hong Leong Finance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hong Leong Finance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hong Leong Finance's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Hong Leong Finance's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hong Leong Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Hong Leong Finance has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hong Leong Finance Company Filings, last reported 3 months ago.

SGX:S41 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,914.24 0.00 947.43
2019-09-30 1,887.08 0.00 939.62
2019-06-30 1,882.96 0.00 908.86
2019-03-31 1,900.08 0.00 1,270.25
2018-12-31 1,874.35 6.33 1,442.33
2018-09-30 1,847.92 0.00 1,309.35
2018-06-30 1,833.35 0.00 871.65
2018-03-31 1,843.17 0.00 1,062.87
2017-12-31 1,741.85 7.80 1,088.91
2017-09-30 1,716.41 0.00 1,205.46
2017-06-30 1,710.00 0.00 942.31
2017-03-31 1,714.63 0.00 1,141.58
2016-12-31 1,697.11 2.92 1,207.11
2016-09-30 1,682.30 0.00 1,042.99
2016-06-30 1,682.76 0.00 1,127.13
2016-03-31 1,702.72 0.00 1,348.63
2015-12-31 1,688.11 2.26 1,495.01
2015-09-30 1,661.43 0.00 1,117.87
2015-06-30 1,662.24 0.00 1,023.50
2015-03-31 1,674.32 0.00 1,255.20
2014-12-31 1,658.57 2.76 1,082.54
2014-09-30 1,638.30 0.00 1,143.00
2014-06-30 1,640.97 0.00 1,099.50
2014-03-31 1,661.42 0.00 1,075.76
2013-12-31 1,646.27 3.59 1,081.57
2013-09-30 1,628.02 0.00 1,228.02
2013-06-30 1,624.41 0.00 1,158.31
  • Hong Leong Finance has no debt.
  • Hong Leong Finance has no debt compared to 5 years ago when it was 0.2%.
  • Hong Leong Finance has no debt, it does not need to be covered by operating cash flow.
  • Hong Leong Finance has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Hong Leong Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hong Leong Finance has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hong Leong Finance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.94%
Current annual income from Hong Leong Finance dividends. Estimated to be 8.46% next year.
If you bought SGD2,000 of Hong Leong Finance shares you are expected to receive SGD139 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hong Leong Finance's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (3.13%).
  • Hong Leong Finance's dividend is above the markets top 25% of dividend payers in Singapore (6.82%).
Upcoming dividend payment

Purchase Hong Leong Finance before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:S41 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Asia Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 100 Stocks 2.9%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 317 Stocks 5.3%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.8%
Singapore Bottom 25% Dividend Yield 25th Percentile 3.1%
Singapore Top 25% Dividend Yield 75th Percentile 6.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:S41 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.18 1.00
2020-04-08
SGX:S41 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2020-04-02 0.150 7.045
2019-03-27 0.150 5.722
2019-02-27 0.150 5.507
2018-03-28 0.130 4.939
2017-03-28 0.090 3.363
2017-02-24 0.090 3.356
2016-08-12 0.100 4.494
2016-02-25 0.110 4.782
2015-02-26 0.100 4.124
2014-08-11 0.120 4.557
2014-02-27 0.120 4.381
2013-08-06 0.120 4.504
2013-02-26 0.120 4.448
2012-02-28 0.120 4.886
2011-02-24 0.120 4.775
2010-08-11 0.100 3.292
2010-02-24 0.080 2.645
2009-11-10 0.040 1.342
2009-08-12 0.040 1.459
2009-04-24 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hong Leong Finance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Hong Leong Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hong Leong Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hong Leong Finance has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hong Leong Finance's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Leng Beng Kwek
COMPENSATION SGD2,448,000
AGE 78
TENURE AS CEO 41.1 years
CEO Bio

Mr. Leng Beng Kwek has been Managing Director of Target Realty Ltd. since February 1, 1979 and has also been its Chairman since November 28, 1984. Mr. Kwek served as Managing Director and Chairman of City e-Solutions Limited from 1989 to September 2016. He has been the Managing Director and Chairman of Hong Leong Finance Limited since November 28, 1984 and March 01, 1979 respectively. He founded Hong Leong Group Malaysia in 1963 and serves as its Executive Chairman. He has been the Executive Chairman of City Developments Limited since January 1, 1995. He served as Executive Director of City e-Solutions Limited from 1989 to September 2016. He serves as an Executive Director of Target Realty Ltd. He has extensive experience in the finance business, having grown from day one with the original Hong Leong Finance Limited which has since merged its finance business with Singapore Finance Limited (now known as HLF). He also has vast experience in the real estate business, the hotel industry as well as the trading and manufacturing business. He has been the Executive Chairman of Millennium & Copthorne Hotels PLC of M&C Hotels Holdings Ltd February 1995 and served as its Non-Executive Chairman from February 1995 to November 18, 2019. He serves as Executive Chairman of Hong Leong Investment Holdings pte. Ltd. He serves as the Chairman of Republic Hotels & Resorts Ltd., and Kwek Holdings Pte Ltd. He served as the Non-Executive Chairman at Hong Leong Asia Ltd. since January 3, 1995 until April 28, 2017. He served as Non-Executive Chairman of Millennium & Copthorne Hotels New Zealand Limited. He has been a Director of Millennium & Copthorne Hotels PLC since February 1995; Republic Hotels & Resorts Ltd., since 1967 and City Developments Ltd., since October 1, 1969. He serves as a Director of CDL Hotels Holdings New Zealand Limited. He serves as a Director of Lam Huat Holdings Pte Ltd. He serves as a Director of Garden Estates (Pte) Limited. He serves as a Director of Hong Leong Group Malaysia. Mr. Kwek serves as a member of the Singapore-US Business Council since 1995. He is a member of the Board of Trustees of Singapore Management University. He served as a Non Executive Non Independent Director of Hong Leong Asia Ltd. since November 25, 1981 until April 28, 2017. He is also a Patron of the Real Estate Development Association of Singapore. He was also honored as 'Asian Hotelier of the Decade' at the 3rd Annual Asia Pacific Hotel Industry Investment Conference organized by Jones Lang Lasalle Hotels and Arthur Andersen. He was named Businessman of the Year, a premiere corporate award by the Singapore Business Times in 1996 and was awarded the “Outstanding Contributor to Tourism“ and “Tourism Entrepreneur of the Year“ awards by the Singapore Tourism Board the following year. In 2003, he was appointed a Member of ACE (Action Community for Entrepreneurship) Singapore. He is a member of the Advisory Board of The Cornell- Nanyang Institute of Hospitality Management. He was presented the Lifetime Achievement Award at the Asia Pacific Entrepreneurship Awards 2017 organised by Enterprise Asia, a regional nongovernmental organisation for entrepreneurship. In February 2014, he was also presented with the inaugural Real Estate Developers’ Association of Singapore (REDAS) Lifetime Achievement Award which was introduced to honour a pioneering group of real estate industry leaders in Singapore. He also serves as a member of the INSEAD East Asia Council. Mr. Kwek holds a law degree, LL.B. (London) and is a fellow of The Institute of Chartered Secretaries and Administrators. He was conferred an Honorary Doctorate of Business Administration in Hospitality Management by Johnson & Wales University of Rhode Island in 1998 and an Honorary Degree from Oxford Brookes University, UK in 2000.

CEO Compensation
  • Leng Beng's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Leng Beng's remuneration is higher than average for companies of similar size in Singapore.
Management Team Tenure

Average tenure of the Hong Leong Finance management team in years:

3.5
Average Tenure
  • The tenure for the Hong Leong Finance management team is about average.
Management Team

Leng Beng Kwek

TITLE
Chairman & MD
COMPENSATION
SGD2M
AGE
78
TENURE
41.1 yrs

Tang Ang

TITLE
President
AGE
71
TENURE
3.5 yrs

Joan Yeo

TITLE
Chief Financial Officer
TENURE
2.2 yrs

Benjamin Ng

TITLE
Senior Vice President of Operations

Yeng Yuen Tang

TITLE
VP & Head of Corporate Finance

Andrew Low

TITLE
Senior VP of Human Resources

Chee Leong

TITLE
Senior VP of Risk Management and Credit Control

Jeffrey Toh

TITLE
Senior VP of Corporate & Consumer Business

Guat Peh

TITLE
Senior VP of Corporate & Consumer Business

Joanne Yeo

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Hong Leong Finance board of directors in years:

9.6
Average Tenure
65
Average Age
  • The tenure for the Hong Leong Finance board of directors is about average.
Board of Directors

Leng Beng Kwek

TITLE
Chairman & MD
COMPENSATION
SGD2M
AGE
78
TENURE
35.4 yrs

Leng Peck Kwek

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
SGD138K
AGE
63

Bertie Cheng

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD293K
AGE
82
TENURE
16 yrs

Po’ad bin Shaik Abu Bakar Mattar

TITLE
Lead Independent Director
COMPENSATION
SGD179K
AGE
71
TENURE
9.6 yrs

Peter Chay

TITLE
Non-Executive & Independent Director
TENURE
0.8 yrs

Leng Kee Kwek

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
SGD75K
AGE
65
TENURE
18.6 yrs

Beng Hua Chng

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD75K
AGE
53
TENURE
19.8 yrs

Kim Cheu Ter

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD156K
AGE
72
TENURE
9.6 yrs

Raymond Lim

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD139K
AGE
60
TENURE
8.1 yrs

Kevin Hangchi

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
SGD119K
AGE
46
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
X
Management checks
We assess Hong Leong Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hong Leong Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Hong Leong Finance Limited's (SGX:S41) CEO Salary Compare Well With Others?

At the time of writing our data says that Hong Leong Finance Limited has a market cap of S$1.2b, and is paying total annual CEO compensation of S$4.7m. … It would therefore appear that Hong Leong Finance Limited pays Leng Beng Kwek more than the median CEO remuneration at companies of a similar size, in the same market. … We compared total CEO remuneration at Hong Leong Finance Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Could Hong Leong Finance Limited (SGX:S41) Have The Makings Of Another Dividend Aristocrat?

Could Hong Leong Finance Limited (SGX:S41) be an attractive dividend share to own for the long haul? … Hong Leong Finance's dividend payments have fluctuated, so it hasn't grown 4.1% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Hong Leong Finance has grown its earnings per share at 11% per annum over the past five years.

Simply Wall St -

Did You Miss Hong Leong Finance's (SGX:S41) 21% Share Price Gain?

For example, the Hong Leong Finance Limited (SGX:S41) share price is up 21% in the last three years, clearly besting than the market return of around 8.9% (not including dividends). … During three years of share price growth, Hong Leong Finance achieved compound earnings per share growth of 18% per year. … We note that for Hong Leong Finance the TSR over the last 3 years was 39%, which is better than the share price return mentioned above.

Simply Wall St -

What Kind Of Shareholder Appears On The Hong Leong Finance Limited's (SGX:S41) Shareholder Register?

Check out our latest analysis for Hong Leong Finance SGX:S41 Ownership Summary, June 10th 2019 What Does The Institutional Ownership Tell Us About Hong Leong Finance? … Insider Ownership Of Hong Leong Finance The definition of company insiders can be subjective, and does vary between jurisdictions. … We can see that insiders own shares in Hong Leong Finance Limited.

Simply Wall St -

If You Like EPS Growth Then Check Out Hong Leong Finance (SGX:S41) Before It's Too Late

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Hong Leong Finance (SGX:S41). … Impressively, Hong Leong Finance has grown EPS by 18% per year, compound, in the last three years. … You can't deny that Hong Leong Finance has grown its earnings per share at a very impressive rate.

Simply Wall St -

If You Had Bought Hong Leong Finance (SGX:S41) Shares Three Years Ago You'd Have Made 17%

For example, Hong Leong Finance Limited (SGX:S41) shareholders have seen the share price rise 17% over three years, well in excess of the market return (8.8%, not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Hong Leong Finance achieved compound earnings per share growth of 17% per year.

Simply Wall St -

How Much is Hong Leong Finance Limited's (SGX:S41) CEO Getting Paid?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Leng Beng Kwek's Compensation Compare With Similar Sized Companies. … Our data indicates that Hong Leong Finance Limited is worth S$1.2b, and total annual CEO compensation is S$2.2m.

Simply Wall St -

Should Hong Leong Finance Limited (SGX:S41) Be Part Of Your Portfolio?

Historically, Hong Leong Finance Limited (SGX:S41) has paid a dividend to shareholders. … Let's dig deeper into whether Hong Leong Finance should have a place in your portfolio. … See our latest analysis for Hong Leong Finance

Simply Wall St -

2 Days Left Before Hong Leong Finance Limited (SGX:S41) Will Start Trading Ex-Dividend, Should Investors Buy?

Have you been keeping an eye on Hong Leong Finance Limited's (SGX:S41) upcoming dividend of S$0.05 per share payable on the 12 September 2018? … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Hong Leong Finance's latest financial data to analyse its dividend characteristics. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

How Has Hong Leong Finance Limited's (SGX:S41) Earnings Fared Against The Long Term Trend

When Hong Leong Finance Limited (SGX:S41) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Understanding how Hong Leong Finance performed requires a benchmark rather than trying to assess a standalone number at one point in time. … S41's trailing twelve-month earnings (from 31 March 2018) of S$95.08m has

Simply Wall St -

Company Info

Description

Hong Leong Finance Limited provides various financial services for business enterprises and retail customers in Singapore. The company accepts savings and business current accounts, as well as fixed deposits. It also offers new and used car, home, and private housing loans, as well as share financing services; and mortgage equity services. In addition, the company provides commercial and industrial property, property development, HDB SME, SME equipment and factory, SME micro, SME working capital, and working capital term loans; internationalization finance and loan insurance schemes; equipment financing, accounts receivable financing, term loan/credit line, and supplier’s invoice financing/letters of credit; and medical and dental equipment loans, and medical property loans. Further, it offers corporate advisory services comprising initial public offers, reverse takeovers, rights issues and private placements, capital restructuring, project and investment evaluation, financial modeling, and mergers and acquisitions. It operates through a network of 28 branches and 10 SME Centers. The company was incorporated in 1961 and is based in Singapore.

Details
Name: Hong Leong Finance Limited
S41
Exchange: SGX
Founded: 1961
SGD984,580,240
447,536,473
Website: http://www.hlf.com.sg
Address: Hong Leong Finance Limited
No. 01-05 Hong Leong Building,
16 Raffles Quay,
Singapore,
048581,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX S41 Ordinary Shares Singapore Exchange SG SGD 02. Jan 1992
Number of employees
Current staff
Staff numbers
634
Hong Leong Finance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 12:59
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/02/27
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.