gongkiawhy hlfg got so much lower valuation than hlbank
19/05/2021 10:39 PM
scholez18Lower stock price does not indicate lower value or lower capitalisation. Need to multiply by shares outstanding and compare the market cap directly, not comparing share price.
tollebunsmithClosing embargo trance was 7.5 mil done against 4,3 mil done at 4.45 for MBB Closing embargo trance was 23 mil done against 12.1mil done at 4.45 for PBB
so someone was exixitng (foreign) and someone was grabbing (local)
i suspect cos of the 2022/2023 probable rate hike by Powell
18/06/2021 9:02 PM
Keyman188Foreign buying extends to third week, surges to RM964.3m
(theedgemarkets.com / August 30, 2021 09:42 am +08)
KUALA LUMPUR (Aug 30): Foreign buying of Malaysian equities extended for the third week and surged to RM964.33 million last week, from a paltry RM6.71 million the prior week.
In its weekly fund flow report today, the MIDF Research team said as the market reopened last Monday, foreign investors were net buyers amounting to RM6.7 million.
Meanwhile, it said local institutions bought RM19.16 million net of local equities, with retailers as net sellers to the tune of RM25.86 million.
The research house said foreign investors were net buyers every day of the week.
It said the largest foreign inflow was recorded last Thursday to the tune of RM310.79 million, while the inflow of RM6.7 million last Monday was the smallest.
“As for retailers, they were net sellers every day of the week except on Monday.
“The largest net selling by retailers was recorded last Tuesday and the smallest net selling was on Friday to the tune of RM48.43 million and RM16.88 million respectively.
“Cumulatively, for the week, retailers net sold RM113.96 million worth of equities on Bursa Malaysia,” it said.
MIDF said that meanwhile, local institutions recorded cumulative weekly net selling to the tune of RM850.37 million.
It said local institutions were net sellers every day of the week, with the largest net selling on Thursday to the tune of RM290.41 million.
Since the beginning of 2021, cumulatively, retailers were the only net buyers of the local equity market to the tune of RM9.46 billion.
Local institutions and foreign investors were net sellers to the tune of RM4.46 billion and RM5 billion respectively.
“In terms of participation, retail investors, local institutions and foreign investors recorded weekly movements of -3.82%, 9.89% and 16.82% respectively in average daily trade value (ADTV),” it said.
We maintain BUY call on Hong Leong Financial Group (HLFG) with unchanged fair value of RM20.60/share based on SOP valuation. We fine-tune our FY21/22 earnings by +0.5/-0.8% after tweaking our net interest and non-interest income (NOII) estimates.
HLFG reported a flattish net profit of RM573mil (-0.7% QoQ) in 4Q21. Higher net interest income (NII) was offset by a slowdown in non-interest income (NOII) coupled with higher provisions due additional pre-emptive provisions of RM157mil set aside by its key subsidiary, Hong Leong Bank (HLBB) in the quarter.
For 12M21, core earnings grew by 13.3% YoY to RM2.27bil with higher profit contribution from all divisions (commercial and share of results from Bank of Chengdu – associate company, investment banking and insurance).
Cumulative earnings were within our expectation, accounting for 104.6% of forecast. However, the results were slightly above consensus number making up 105.6% of street estimates.
Its key subsidiary, HLBB, reported a strong PBT of RM3.5bil (+16.1% YoY) for 12M21 contributed by higher total income and lower opex partially offset by increase in provisions due to pre-emptive allowances on loan losses of RM511mil booked in for the financial year.
HLBB’s loans grew strongly at 6.8% YoY with domestic loan growth outpacing the industry’s 3.4% YoY growth.
HLBB’s CI ratio for 12M21 improved to 38.0% with a positive JAW of 15.6% YoY.
The banking subsidiary’s asset quality remained sound with GIL ratio of 0.46% while loan loss cover including regulatory reserves was high at 304.0% significantly above the industry’s 112.0%. Credit cost of HLBB stood at 0.42% in 12M21.
HLA Holdings (HLAH) recorded a higher net profit after tax of RM394mil (+73.3% YoY) for 12M21.
The improved performance of the group’s insurance business was underpinned by higher insurance underwriting surplus (+RM38mil), fair value gains from equities (+RM78mil) and the release of contractual liabilities from higher interest rate partially offset by FV losses on bonds (+RM28mil)
For 12M21, HLA the key insurance subsidiary’s gross premiums and new business regular premiums (NBRP) expanded by 11.1%YoY and 29.7% YoY respectively.
HLA’s embedded value rose by 14.0% YoY to RM2.87bil in 12M21 focusing on growth of higher margin products (investment-linked). New business embedded value (NBEV) of HLA climbed 20.0% YoY to RM177mil in 12M21 from changes in product mix, new product launches and favourable impact from the steepening of long-term MGS rates. Non-par and investment-linked/ participating ratio for new businesses stood at 96:4. HLA maintained its ranking at No. 4 for investment-linked products while its market share in terms of NBRP for ordinary life products improved to the 7th position in FY21 from 9th in FY20.
HLA’s number of agents rose to 8,095. By delivery channel, gross premiums continued to be driven largely by agents followed by bancassurance. In FY21, agency and bancassurance’s NBRP grew by 27.0% YoY and 39.0% YoY respectively.
Its investment banking division under Hong Leong Capital (HLC) reported a higher PBT of RM177mil (+85.2% YoY) for 12M21 driven by higher contributions from investment banking and stockbroking business. Higher retail participation in the stock market benefitted its stockbroking business. Meanwhile, improved deals flows for equity and debt capital markets, coupled with higher treasury income lifted earnings contribution from investment banking. In contrast, its asset management business’s PBT declined YoY with lower average AUM of RM16.9mil as money market funds withdrew to invest in other higher yielding investments.
HLFG’s consolidated CET1 ratio, Tier 1 and total capital was 11.64%, 12.58% and 15.47% in 4Q21 respectively. The ratios stayed above the regulatory requirements of 7.0%, 8.5% and 10.5% respectively.
A final dividend of 29.2 sen/share has been proposed bringing the total FY21 dividends to 40 sen/share (payout: 20.0%). This was close to our estimate of 43.5 sen/share.
Keyman188Amboi...latest quarterly result IMPRESSIVE...
QoQ = +11% ++
You = + 9%++
^^^Net Profit break the historical high again...
Always is Keyman188 priority Choice amongst banking stock...
CHEERS........
29/11/2021 1:23 PM
wallstreetrookieThe issue of FBM index lies within the fact that the index consistently ostracizes the winners and embrace the losers. Hong Leong Financial Group is the few movers of the index with the least analyst upgrades/coverage and highest SD for earnings estimates. This is really boring
06/04/2022 11:18 PM
wallstreetrookieAlways buy companies with high FCF yield. Only companies with good cash flow can beat recessionary environment
Top Bursa Financials Stocks to Own in 2022
1. Ambank 2. Hong Leong Financial Group 3. Aeon Credit Berhad
12/07/2022 10:12 PM
bullmarket1628After 3 years pandemic already end, next year onwards surely is the years of recovery and economy start booming time ! Like previously economy downturn period of: 1)Crisis 1986-1990 start booming 1993 to 1997 2)Crisis 1997-2000 start booming 2003 to 2006 3)Crisis 2006-2010 start booming 2013 to 2016 4)Crisis 2016-2022 start booming 2023 to 2027
So, our economy and KLSE will be spike up like mad start from year 2023 which is next year and i predict our KLSE this round of bull run start 2023 will hit it’s record high of around 2,000 points !
Heng Ah, Ong Ah, Huat Ah !
03/09/2022 8:30 AM
bullmarket1628Bank Negara raises OPR by 25 basis points to 2.5% Thursday, 08 Sep 2022 3:23 PM MYT
KUALA LUMPUR: At the conclusion of its monetary policy committee (MPC) meeting, Bank Negara increased the overnight policy rate by 25 basis points (bps) to 2.5%, in line with market expectations. In a statement, it said it raised the ceiling and floor rate of the corridor of the OPR to 2.75% and 2.25% respectively.
This is the central bank's third consecutive rate hike, bringing the total increase in the OPR to 75bps so far this year. "At the current OPR level, the stance of monetary policy continues to remain accommodative and supportive of economic growth.
"The MPC is not on any pre-set course and will continue to assess evolving conditions and their implications on the overall outlook to domestic inflation and growth," said Bank Negara…..
09/09/2022 6:49 AM
bullmarket1628Wow, Bank Negara raises OPR by 25 basis points to 2.5%
Like that today HLFG will be limit up already liao lah !
Heng ah, Ong ah, Huat ah !
09/09/2022 6:56 AM
snowball20003Q23 QR still pending. What is HLFG cooking?
Nice149HLFG owns HLBank. HLBamk has the highest margin among all Malaysia banks. Blue chip share. Just keep and sure up when time comes
01/12/2023 7:11 AM
i3gamblerHLFG own 1340m HLBANK shares HLFG total out-standing shares = 1134m Therefore, for every single share of HLFG that we own, it indirectly own 1.1817 share HLBANK.
For the last 4 quarters: HLBANK EPS=RM1.8873 HLFG EPS = RM2.514
HLFG EPS = 1.1817 * HLBANK EPS + other business EPS, other business EPS = 2.514 -1.1817 * 1.8873 = 0.2838,
(2.514 - 0.2838) / 2.514 = 88.7%, Meaning 88.7% of HLFG profit is from HLBANK.
Now, look at their Net Asset per share at 30th Sep 2023, HLBANK Net Asset per share = RM16.68, HLFG Net Asset per share = RM24.25,
Same way of calculation, HLFG other business Net Asset per share = 24.25 - 1.1817 * 16.68 = RM4.54 Meaning the ROE for HLFG other business = 0.2838 / 4.54 = 6.25%, Not Bad.
Now the question is why HLFG is trading at so much cheaper compare to HLBANK? Because there is a Conglomerate Discount or in Malaysia we call it holding company discount. But logically it should not be applicable to HLBANK / HLFG because 88.7% of HLFG profit come from HLBANK.
What you people think of it?
02/12/2023 6:44 PM
chtan33someones intentionally press down the price….
02/12/2023 7:24 PM
Nice149HLFG has the lowest PE Ratio 6.63 only as compared average bank at Malaysia 9.00 P/B ratio is at 0.68 and the lowest among the banks
This is sure win shares and continue to take any opportunity to accumulate at dip.
03/12/2023 9:41 PM
i3gamblerMy opinion, Logically, holding company discount should only be applicable to those companies that owning non-controlling stake, which have no say in business operation, example INSAS holding INARI, ICAP holding a basket of companies.
But HLFG have full control of HLBANK and HLCAP, so to me, holding company discount is not applicable.
04/12/2023 12:50 PM
snowball2000Does anyone have any idea about the carrying book value of hlfg's bank of chengdu 19.8% investment vs the current valuation of BOC in chinese stock exchange? EPS and NBV of BOC as well?
05/12/2023 10:03 AM
i3gamblersnowball2000， You can go to yahoo finance and search for it.
1 is pure bank, 1 is full fledged financial provider
Hmm...
03/02/2024 5:33 PM
JLKL12HLFG vs HLBANK (last fin yr info) Price 16.28 vs 18.96 (closing on 9th Feb) EPS(cts) 246.1 vs 186.37 NTA 23.62 vs 16.59 PE 4.51 vs 10.96 S-Issued 1.147B vs 2.167B
13/02/2024 3:13 PM
PinkyHLFG suffers from holding company/conglomerate discount
