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Hong Leong Asia Ltd (H22) Fair Value & Analysis

Consumer Cyclical · SG · Market cap 2.1B SGD

HL Hong Leong Asia Ltd H22 · SG
Price2.66 SGD
Fair Value3.11 SGD
Upside+16.9%
Quality63/100
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Evidence: Medium Range 2.33 SGD – 3.89 SGD

Fair value as of: Jul 4, 2026

From 25 valuation models · updated today

Share price −17.4% over the past month.

Price vs Fair Value (12 months)

3.86 SGD 1.58 SGD Fair Value 3.11 SGD Jul 2025 Jul 2026

12‑month range 1.58 SGD – 3.86 SGD · fair‑value band 2.33 SGD – 3.89 SGD · the 2.66 SGD price screens below the 3.11 SGD fair value. As of Jul 4, 2026.

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Analysis

Hong Leong Asia Ltd (H22) currently trades at 2.66 SGD, while our model-based Fair Value estimate is 3.11 SGD — implying the stock looks roughly 16.9% undervalued today. We read business quality at 63/100 (solid quality), in the Consumer Cyclical 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: medium) — always confirm before acting.

Over the trailing twelve months, Hong Leong Asia Ltd generated revenue of 5.2B SGD at a net margin of 2.2%. Revenue grew 17.8% year over year. It earns a return on equity of 8.5%. The stock trades on a trailing P/E of 17.7. Fundamentals as of Jul 4, 2026

Key figures & financial health

Revenue (TTM) 5.2B SGD
Revenue growth (YoY) +17.8%
Net margin 2.2%
Return on equity 8.5%
Free cash flow 450M SGD FY2025
P/E ratio 17.7
More key figures
Operating margin 4.1%
EPS (TTM) 0.1500 SGD
Dividend yield 1.9%
EPS growth (YoY) +48.3%

Figures from reported company fundamentals (EODHD) · as of Jul 4, 2026. TTM = trailing twelve months.

About the company

Hong Leong Asia Ltd., an investment holding company, manufactures and distributes powertrain solutions and related products, building materials, and rigid packaging products in the People's Republic of China, Singapore, Malaysia, and internationally. It operates through Powertrain Solutions and Building Materials segments. The Powertrain Solutions segment offers engines for on-road, off-road, genset, and marine applications. The Building Materials segment manufactures and supplies cement, pre-cast concrete products, ready-mix concrete, and quarry products. It also manufactures, assembles and sells a diverse range of light, medium and heavy-duty engines for trucks, buses, passenger vehicles, industrial equipment, marine and agricultural applications. The company was founded in 1941 and is headquartered in Singapore. Hong Leong Asia Ltd. is a subsidiary of Hong Leong Corporation Holdings Pte Ltd.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hong Leong Asia Ltd reported revenue of 5.2B SGD in FY2025 versus 4.9B SGD in FY2021, a compound +1.2%/yr. Reported net income was 113M SGD in FY2025, compounding +17.0%/yr from FY2021.

Revenue +1.2%/yr
FY21 4.9B SGD
FY22 3.9B SGD
FY23 4.1B SGD
FY24 4.2B SGD
FY25 5.2B SGD
Net income +17.0%/yr
FY21 60.1M SGD
FY22 54.5M SGD
FY23 64.9M SGD
FY24 87.8M SGD
FY25 113M SGD

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Frequently asked questions

Is Hong Leong Asia Ltd (H22) undervalued?
As of Jul 4, 2026, our model estimates a fair value of 3.11 SGD versus a price of 2.66 SGD — about +17% (undervalued). Model-based estimate, not financial advice.
What is the fair value of H22?
Our model-based fair value for Hong Leong Asia Ltd is 3.11 SGD (as of Jul 4, 2026), built from audited fundamentals. The current price is 2.66 SGD.
What is the quality score of H22?
Hong Leong Asia Ltd has a Quality Score of 63/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Hong Leong Asia Ltd (H22)?
Hong Leong Asia Ltd reported trailing-twelve-month revenue of about 5.2B SGD (latest available figure, as of Jul 4, 2026).
What is the net profit margin of H22?
The net profit margin of Hong Leong Asia Ltd is about 2.2%, meaning it keeps roughly 2.2% of revenue as net income. Based on the latest reported figures.
Does Hong Leong Asia Ltd pay a dividend?
Hong Leong Asia Ltd currently shows a dividend yield of about 1.91% relative to its recent price (as of Jul 4, 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.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.