*Official* Hong Leong Finance (S41.S1)

[Raynon]

Has anybody done a research on this counter?
At current price of $2.26, yield is about 4.4%.
Net tangible asset is valued at $3.84 which is pretty undervalued based on the below link. Looks like it is quite attractive.

http://markets.ft.com/data/equities/tearsheet/financials?s=S41:SES

 

[Average]

camping for fata...

 

[TheIntelligentInvestor]

If I view HLF as a bank, then the big 3 Banks are more attractive with ROA of about 1%. HLF ROA has been declining over the past 5 years to 0.6% which probably the reason why it is trading at a such a discount to book value. The upside is that there is room to improve their earnings. Dividend payout has been consistent with 10-12 cents, which is about 4.8%. Vested in the 3 banks.

My 2 cents.

 

[Jupiter2017]

http://www.businesstimes.com.sg/com...et-earnings-jump-84-on-lower-interest-expense
Hong Leong Finance Q3 net earnings jump 84% on lower interest expense
Fri, Nov 10, 2017 - 7:25 PM Siow Li Sen lisen@sph.com.sg

HONG Leong Finance said on Friday that net profit for Q3 jumped 84 per cent to S$23.6 million, mainly due to lower interest expense.
Annualised earnings per share rose to 21.19 Singapore cents from 11.52 Singapore cents.
Singapore's largest finance company said that net profit for nine months 2017 rose 59 per cent to S$60.9 million.
Interest on loans in Q3 was flat at S$57.3 million while hiring charges rose 28 per cent to S$12.4 million. Other interest income was up 7 per cent to S$7.4 million.
Fee and commission income rose 26 per cent to S$3.8 million.
Hong Leong Finance said that total interest income/hiring charges for the quarter under review increased by 3.6 per cent to S$77.1 million due to a higher loan yield partially offset by a lower loan base.
Interest expense fell 30 per cent to S$29.7 million.
The decrease resulted from a combination of a lower average deposits base and lower applicable interest rates.
Accordingly net interest income/hiring charges for the quarter gained 48 per cent.
Provisions for bad debt surged to S$2.8 million; in Q3 2016, it had a writeback of S$749,000.
Staff costs rose 2 per cent but other operating expenses fell 8.8 per cent mainly due to reduced business promotion expenses.
Net loan assets including hire purchase receivables stood at S$9.8 billion, flat from a year ago and up 2.7 per cent from end-2016.
Deposits and balances of customers closed at S$10.7 billion as at Sept 30, up 1.7 per cent from a year ago and 2.6 per cent higher from end-2016.
Looking ahead, the company said that with the prospect of higher interest rates, it will closely manage liquidity management and deposit taking activity.
"At the same time, we roll out attractive SME loan packages to help SMEs with their cash flows and working capital," it said.
It has 11 SME Centres in Singapore.

 

[wutawa]

Today last min suddenly up $0.32 (11.85%)?

 

[havetheveryfun]

Today last min suddenly up $0.32 (11.85%)?

but still showing 2.87 ? seems the price shot up after mkt close.. maybe some shorties kena force to cover..

but this is currently giving good div yield.. ~5%... and have been doing well for the past 2-3 years....

 

[Perisher]

Sing invest is my other one waiting to explode after this HLF.

 

[SibehHL]

Back down to 2.87 already. Sudden surge before closing I saw at 3.01

Don’t think people will try to short this counter; always steadily moving up down within a narrow band... but seems a large volume more than million shares went through yesterday

Average divd under 4% except for last year but steady counter

but still showing 2.87 ? seems the price shot up after mkt close.. maybe some shorties kena force to cover..

but this is currently giving good div yield.. ~5%... and have been doing well for the past 2-3 years....

 

[havetheveryfun]

Back down to 2.87 already. Sudden surge before closing I saw at 3.01

Don’t think people will try to short this counter; always steadily moving up down within a narrow band... but seems a large volume more than million shares went through yesterday

Average divd under 4% except for last year but steady counter

based on google finance graph, it didnt drop back, but the price is showing the dropped back price

 

[Shansong]

jus vested 400 shares to tikam

 

[coolhead]

Having worked with HL bank....it's a damn slow moving bank in terms of infra/implementation/innovation. Not something I will touch imo.

 

[Nuthing03]

Having worked with HL bank....it's a damn slow moving bank in terms of infra/implementation/innovation. Not something I will touch imo.

HL bank != HL finance

 

[coolhead]

HL bank != HL finance

Oops paiseh, I overstayed my presence here.

Sent from HMD Global TA-1004 using GAGT

 

[revhappy]

Having worked with HL bank....it's a damn slow moving bank in terms of infra/implementation/innovation. Not something I will touch imo.

They are in guoco tower, very close to my office It is more like a master bedroom size office.

 

[bright_84]

It's been trading below nav for decades.

 

[havetheveryfun]

HL bank != HL finance

but hes still right, HL finance dont have the option for you to log in at home through the internet to check what you have

 

[Nuthing03]

Oops paiseh, I overstayed my presence here.

Sent from HMD Global TA-1004 using GAGT

lol. i also confused with both of them at first. From what i knew, they are related since hl bank is owned by the cousin of hl finance boss.

 

[coolhead]

HL bank != HL finance

actually, to clarify this point here. i chatted with one of the heads from hong leong bank in Malaysia at their office. legally you are right that hong leong bank is not the same as hong leong finance. however, hong leong finance is named as such in singapore but is still a subsidiary under hong leong group.

 

[henrylbh]

actually, to clarify this point here. i chatted with one of the heads from hong leong bank in Malaysia at their office. legally you are right that hong leong bank is not the same as hong leong finance. however, hong leong finance is named as such in singapore but is still a subsidiary under hong leong group.

HLF was Singapor Finance.

 

[boliao123]

Anybody looking into this?

Seems like all these finance coys does is make local/SGD loans using customer deposits, nothing too funky. Hong leong being the biggest amongst the 3 coys.

My thoughts are....
1) who would want to partake in their fixed deposits? This is afterall a very competitive market
2) are SMEs hardpressed to get loans from HLF and co instead of a regular sg bank(which I'm sure has SME focused sales)?


Given that HLF loan book seems to be concentrated around ppty loans and with building/construction industries, with more than half being less than 5 yr term, their non-performing loans looks quite decent (less than 1%).