"In our view, Hong Leong Asia remains undervalued given the positive outlook for its businesses," state analysts Llelleythan Tan and John Cheong in their Dec 13 report, where they've maintained their "buy" call along with a sum-of-the-parts based target price of $1.11.
UOB Kay Hian maintains its positive view on Hong Leong Asia (SGX:H22
) , given how it is set for "strong earnings growth" between FY2024 and FY2026.
First, with its significant market share in both Singapore and Malaysia, its building materials segment of selling cement is seen to be a "strong proxy" for the sustained recovery of the construction industry. On the other hand, Hong Leong Asia's China-based engine-making subsidiary is on the verge of an earnings upcycle too, thanks to favourable regulatory tailwinds.
