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Hong Leong Finance Q1 net profit falls 8.9%
Hong Leong Finance's first quarter net profit fell 8.9 per cent to $15.3 million, from $16.7 million a year ago.
Net interest income and hiring charges at Singapore's largest finance company fell 7.5 per cent to $36.5 million, from $39.5 million a year ago, for the quarter ended March 31, 2013.
Fee and commission income rose 17.2 per cent to $3.4 million, from $2.9 million in the corresponding quarter last year, due to higher fee income from some lending products and corporate advisory services.
Deposits and balances amounted to $10.044 billion as at March 31, 2013, rising 19.6 per cent from the base a year earlier.
FIRST QUARTER RESULTS * FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT
http://info.sgx.com/webcorannc.nsf/AnnouncementTodayByCompanyNameAndCategory/577FE95EE003305248257B56003BF399?opendocument
Today, in the middle of the financial crisis, and as we look back at the postings 2 years ago, we see that the latest evaluation of HLF's Net Asset per share remains at 3.17, equalling that 2 years ago.
Share price has dropped to 1.92 though.
With the above ratio, this is becoming a gem, caveat emptor,.... what do you think ?
perhaps they reserve for next round. read report by Lim and Tan
http://www.remisiers.org/research//dailyex.pdf
DJ MARKET TALK: BNP Paribas Starts Hong Leong Finance At Buy
0110 GMT [Dow Jones] STOCK CALL: BNP Paribas starts Hong Leong Finance (S41.SG) at Buy with S$4.50 target, based on 15X FY08 EPS. Says Singapore's largest finance company stands to gain from strong economic undercurrent; expects loan growth to rise 30% in 2007, 16% next year, driven by demand from small & medium enterprises, homebuyers. Tips 17% EPS CAGR over 2006-2009 on strong loan expansion, higher fee-based income; "we see scope for earnings upgrades and believe its earnings potential is underappreciated." Stock +0.6% at S$3.62. (FKH)
UOBKayhian reiterates BUY & targets $5 this morning!!!!!!!!!!!!
Corporate News ..... Hong Leong Finance (HLF) : Acquiring a portfolio of hire-purchase agreements
source : UOBKH Research
HLF has reached an agreement to acquire a portfolio of 10,300 hire purchase agreements from the Singapore branch of a foreign bank at a consideration of S$405m, subject to closing adjustments at the completion date. The acquisition is expected to be completed on 12 Jul 07, and be funded by a combination of internal resources and short to medium term bank borrowings.
Prior to this announcement, we have been forecasting Dec 07 loan book of S$7.1b. With this acquisition, we are now forecasting loan book of S$7.4b. The acquisition will enable HLF to increase its net interest income. In FY06, HLF recorded net interest margin of 2.3%. Using the same net interest margin (which we view as conservative), a S$405m portfolio can generate additional annual net interest income of S$9.3m. For half a year (since acquisition will be completed in Jul 07), the additional net interest income accounts for 2.5% of our revised FY07 net interest income. Although the direct impact may be marginal, we believe HLF could leverage on the additional customer base to cross-sell other financial products.
Acquisition prospects remain. HLF's NTA is S$3.24ps. Our S$5.00 price target is based on 1.6x P/NTA. We believe HLF is an attractive acquisition target by QFBs as well as China banks which want to expand their operations in Singapore. As OCBC paid 1.8x P/NTA for Keppel Capital Holdings and UOB paid 1.6x P/NTA for OUB, we feel that our price target of 1.6x P/NTA is fair. HLF also attractive due to its Section 44 tax credits which could translate to more special dividend payout.
Hi tiandi,
This counter has relatively low volumes so TA may not be that accurate.
I see that the Acc/Dist and Chaikin are both downtrending. The price is almost touching the lower bollinger band. These are all bearish signs. The price trend itself seems to be edging southwards too.
Hi Singaporegal,
I find indicators are confusing for HL Fin, could you help read them and comment? Thanks
UOBKayhian reiterates buy with target of $5 this morning!!!!!!!!!!! CHEONG AH!!!!!!!
Acquisition prospects remain.
target is based on 1.6x P/NTA. We believe HLF is an attractive acquisition
target by QFBs as well as China banks which want to expand their operations
in Singapore. As OCBC paid 1.8x P/NTA for Keppel Capital Holdings and UOB
paid 1.6x P/NTA for OUB, we feel that our price target of 1.6x P/NTA is fair.
HLF?s NTA is S$3.24ps. Our S$5.00 priceUOBKayhian targets $5!!!!!!!!!CHEONG AH!!!!!!!!!!
In 2001, OCBC acquired KCH at 1.8x P/
NTA, and UOB bought OUB at 1.6x P/NTA. We believe any QFBs seriously
interested in buying HLF will have to offer at least 1.6x P/NTA, which
gives our target price of S$5.00.