"We believe HLA is an underappreciated proxy for the Singapore and Malaysia construction industry upcycle," state analysts Ong Khang Chuen and Kenneth Tan in their April 18 note.
CGS International has kept its "add" call and sum-of-parts-based target price of $1 for Hong Leong Asia (SGX:H22
) , on the premise that it is seeing growth from both its building materials unit thanks to "robust" construction demand in both Singapore and Malaysia.
Via China Yuchai, its separately listed heavy engine subsidiary, HLA is set to see earnings recovery from that business too, albeit from a low base.
