Thursday, 24 September 2020

Hong Leong Industries - HLIND (Share price - 7.47 - 24 Sep 2020)

Core Business

- Consumer products: Manufacturing, assembling and distribution of motorcycles (Yahama), scooters and related parts and products, manufacturing and sale of ceramic tiles as well as distribution, trading and provision of services in marine related products.

-  Industrial products: Manufacturing and sale of fibre cement and concrete roofing products.

Financial



Segmentation 



-  From the above table, we can clearly see that consumer product bring in the most revenue. Consumer product included - Yamaha motor and ceramic tiles. Whereas the loss generated from industrial product - fibre cement and concrete roofing products.


Geographical information 



The main country for the company to focus on is in Malaysia, 90% of the revenue is from Malaysia. 

Year 2020 Performance



Revenue dropped 8.5% and PAT dropped 39% !!! This is due to MCO and lower profit for associated company. But this company still a cash rich company with cash - 1.2billions. 


Prospect 


Sound like management team not expecting grow for next quarter as well. 

Financial performance year 2020

EPS - 0.5392
P/E - 13
ROE - 13.50 

GDP - 50
PRC -  60

My thought - Company highly impacted by Covid- 19 but I believed that it will slowly recover. 




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