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Hong Leong Bank Berhad (5819) Fair Value & Analysis

Financial Services · MY · Market cap 44.9B MYR

HL Hong Leong Bank Berhad 5819 · KLSE
Price22.18 MYR
Fair Value27.09 MYR
Upside+22.1%
Quality52/100
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Expensive Growth
Highly profitable · 68.0% net margin
Low debt · negative free cash flow
3.11% dividend yield
Ranks above peers (10/13)
Wide moat 67/100
Evidence: High Range 20.32 MYR – 33.87 MYR Share as image

Fair value as of: Jul 14, 2026

From 17 valuation models · updated 24 days ago

Share price +1.0% over the past month.

A solid business, screening 22% undervalued on our models.

What matters now

  • Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

25.47 MYR 14.70 MYR Fair Value 27.09 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range 14.70 MYR – 25.47 MYR · fair‑value band 20.32 MYR – 33.87 MYR · the 22.18 MYR price screens below the 27.09 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

Full chart & analysis →

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Analysis

Hong Leong Bank Berhad (5819) currently trades at 22.18 MYR, while our model-based Fair Value estimate is 27.09 MYR, implying the stock looks roughly 22.1% undervalued today. We read business quality at 52/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hong Leong Bank Berhad generated revenue of 6.4B MYR at a net margin of 68.0%. Revenue declined 20.7% year over year. It earns a return on equity of 11.1%. The balance sheet holds a net cash position of 10.4B MYR. Fundamentals as of Jul 14, 2026

Our scenario range runs from 20.32 MYR (bear case) to 33.87 MYR (bull case); at 22.18 MYR, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 23% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 22%, 5819 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 17.25 MYR 19.61 MYR 34.12 MYR 76
ROIC Compounder 24.89 MYR 30.45 MYR 37.21 MYR 72
Gordon GGM 6.52 MYR 13.55 MYR 21.50 MYR 70
All 17 models by family
DCF Models
Owner Earnings 27.97 MYR 40.85 MYR 60.30 MYR 31
Earnings-Based
Graham-Dodd 14.17 MYR 42.39 MYR 56.15 MYR 54
Lynch FV 8.97 MYR 12.82 MYR 16.66 MYR 50
PEG = 1.0 8.97 MYR 12.82 MYR 16.66 MYR 46
EPV 23.91 MYR 27.22 MYR 30.12 MYR 59
Dividend Discount
Gordon GGM 6.52 MYR 13.55 MYR 21.50 MYR 70
DDM Multi-Stage 6.52 MYR 10.59 MYR 14.22 MYR 61
Multiples
P/E Multiple 31.26 MYR 41.68 MYR 52.10 MYR 63
P/S Multiple 10.21 MYR 13.61 MYR 17.01 MYR 58
P/B Multiple 26.57 MYR 35.43 MYR 44.29 MYR 55
EV/EBIT 39.36 MYR 51.12 MYR 62.88 MYR 53
EV/EBITDA 30.52 MYR 39.34 MYR 48.16 MYR 54
EV/Revenue 13.59 MYR 17.67 MYR 21.75 MYR 43
Asset-Based
NCAV (Graham) 9.58 MYR 12.84 MYR 19.16 MYR 50
Economic Profit
Residual Income 17.25 MYR 19.61 MYR 34.12 MYR 76
ROIC Compounder 24.89 MYR 30.45 MYR 37.21 MYR 72
Growth Earnings
Growth-Adj P/E 25.63 MYR 36.61 MYR 47.60 MYR 68

Widest divergence: DCF Models (40.85 MYR) versus Dividend Discount (10.59 MYR). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 6.4B MYR
Revenue growth (YoY) -20.7%
Net margin 68.0%
Return on equity 11.1%
Free cash flow −4.1B MYR FY2025
P/E ratio 10.3
More key figures
Operating margin 60.4%
EPS (TTM) 2.12 MYR
Dividend yield 3.1%
EPS growth (YoY) +8.7%
Net cash 10.4B MYR FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 36 · Market factors (momentum, volatility) 62

Profitability 35
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hong Leong Bank Berhad operates as a financial services company in Malaysia and internationally. The company operates through Personal Financial Services, Business & Corporate Banking, Global Markets, Overseas/International Operations, and Other Operations segments.

Full company description

Hong Leong Bank Berhad operates as a financial services company in Malaysia and internationally. The company operates through Personal Financial Services, Business & Corporate Banking, Global Markets, Overseas/International Operations, and Other Operations segments. Its deposit products include current, savings, fixed deposit, salary, multi-currency, top yield, foreign currency, safe deposit boxes, and business flexi fixed and fixed deposit accounts. The company also offers personal, property, auto, industrial hire purchase, business mortgage, term, working capital, and onshore foreign currency loans; credit cards; share margin, loan, share, and mortgage financing services; letters of credit; and overdrafts and revolving credit facilities, as well as refinancing. In addition, it provides structured investments, unit trust, bonds, and foreign share trading services; and collection, shipping and bank guarantee, bankers' acceptance, trust receipt, invoice financing, export credit refinancing, foreign/domestic bills of exchange purchased, advance against trade, ebroking, remittance, and wealth and cash management services. Further, the company offers motor, travel, home, life, personal accident, medical, card, investment linked, and safe deposit locker insurance products; payments, merchants, and online banking services; and agent and nominee, and ATM services, as well as invests in and manages properties. Additionally, it offers Islamic banking services. The company was formerly known as MUI Bank Berhad and changed its name to Hong Leong Bank Berhad in January 1991. The company was incorporated in 1905 and is headquartered in Kuala Lumpur, Malaysia. Hong Leong Bank Berhad is a subsidiary of Hong Leong Financial Group Berhad.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hong Leong Bank Berhad reported revenue of 11.2B MYR in FY2025 versus 7.5B MYR in FY2021, a compound +10.4%/yr. Reported net income was 4.3B MYR in FY2025, compounding +10.6%/yr from FY2021.

Growth Quality 45/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
11.2B MYR
Latest YoY
+5.2%
Avg. growth/yr (3Y)
+14.1%
Avg. growth/yr (5Y)
+6.5%
Avg. growth/yr (20Y)
+7.5%
Revenue +10.4%/yr
FY21 7.5B MYR
FY22 7.5B MYR
FY23 9.4B MYR
FY24 10.6B MYR
FY25 11.2B MYR
Net income +10.6%/yr
FY21 2.9B MYR
FY22 3.3B MYR
FY23 3.8B MYR
FY24 4.2B MYR
FY25 4.3B MYR

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Cite: Fair Value Calculator (2026). "Hong Leong Bank Berhad Fair Value". https://www.fairvalue-calculator.com/stock/5819

Peer Group

Banks - Regional · 1082 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Bottom 25%
Fair Value upside +22% · Above median
Return on equity (TTM) 11% · Above median
Return on assets 1% · Top 25%
Net margin (TTM) 68% · Top 25%
Operating margin (TTM) 60% · Top 25%
Revenue growth -21% · Bottom 25%
Dividend yield (TTM) 3.1% · Above median
Debt / equity 0.18× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 10.3× · Cheaper than median
P/B 0.28× · Cheaper than 75% of peers
P/S (TTM) 1.71× · Cheaper than 75% of peers
PEG 1.59× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 63 · sector 39
FUTURE 0 · sector 44
PAST 45 · sector 41
HEALTH 91 · sector 85
DIVIDEND 62 · sector 49

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Hong Leong Bank Berhad (5819) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of 27.09 MYR versus a price of 22.18 MYR, about +22% (undervalued).
What is the fair value of 5819?
Our model-based fair value for Hong Leong Bank Berhad is 27.09 MYR (as of Jul 14, 2026), built from audited fundamentals. The current price is 22.18 MYR.
What is the quality score of 5819?
Hong Leong Bank Berhad has a Quality Score of 52/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Hong Leong Bank Berhad (5819)?
Hong Leong Bank Berhad reported trailing-twelve-month revenue of about 6.4B MYR (latest available figure, as of Jul 14, 2026).
What is the net profit margin of 5819?
The net profit margin of Hong Leong Bank Berhad is about 68.0%, meaning it keeps roughly 68.0% of revenue as net income. Based on the latest reported figures.
Does Hong Leong Bank Berhad pay a dividend?
Hong Leong Bank Berhad currently shows a dividend yield of about 3.24% relative to its recent price (as of Jul 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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