Hong Leong Financial Group Berhad

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research Report by MAYBANK

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by Maybank

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by Maybank
Buy - TP RM22.70

"FY24 results above expectations"

HLFG’s FY24 results were above our expectations due to stronger-than-expected contributions from its investment bank. We upgrade FY25/26E earnings by 6% respectively. We also roll forward our SOTP valuation and raise our TP to MYR22.70 from MYR21.70. BUY maintained.

Analyst:
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by MIDF
Buy - TP RM23.13

"4QFY24 Results: Above our Expectations"

• FY24’s Core NP of RM3,199m was Above / Above our/street forecasts: 109 %/ 106 % of full-year forecasts
• Core themes: (a) Solid Associate contributions, (b) Improved HLA performance, (c) Improved HLC performance
• Forecasts revised: FY25F/26F Core NP adjusted by 8%/11%
• Maintain BUY | Revised TP of RM23.13 | based on SOTP Valuation

Analyst:
Samuel Woo
samuel.woo@midf.com.my

OTHERSHONG LEONG FINANCIAL GROUP BERHAD ("the Company")
- REDEMPTION OF RM1.1 BILLION IN NOMINAL VALUE OF TIER 2 SUBORDINATED NOTES ON 14 JUNE 2024

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by MIDF
Buy – TP RM20.94

“3QFY24 Results: A Strong Quarter"

• 9MFY24’s Core NP of RM2,393m was Above / Above our/street forecasts: 85 % / 82 % of full-year forecasts
• Core themes: (a) Moderating BOCD contributions affect HLBK’s performance, (b) HLA sees strong recovery, (c) HLC sees strong improvement
• Forecasts revised: FY24F/25F/26F Core NP adjusted by +5%/+4%/+4%.
• Maintain BUY | Revised TP of RM20.94 | based on SOTP Valuation

Analyst:
Samuel Woo
samuel.woo@midf.com.my

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by Maybank
Buy – TP RM21.70

“3QFY24 results above expectations"

HLFG’s 9MFY24 results were above our expectations due to lower-than-expected taxes. We maintain our BUY call as well as our SOP-derived TP of MYR21.70.

Analyst:
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

OTHERSHONG LEONG FINANCIAL GROUP BERHAD ("the Company")
- REDEMPTION OF RM400 MILLION IN NOMINAL VALUE OF ADDITIONAL TIER 1 CAPITAL SECURITIES ON 29 MARCH 2024

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by MAYBANK
Buy (Maintained) – Target Price RM21.70

“1HFY24 results above expectation”

HLFG’s 1HFY24 results were above our expectations due to a better-thanexpected
performance from HL Bank. We maintain our BUY call as well as our SOP-derived TP of MYR21.70


Analyst:
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com

WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATORDISSOLUTION OF SUBSIDIARY

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by MIDF
Buy (Maintain) – Target Price RM20.79

“2QFY24 Results: Solid Associate Contributions”

KEY INVESTMENT HIGHLIGHTS
• 6MFY24’s Core NP of RM1,574m was Above/Within our/street forecasts: 56%/54% of full-year forecasts
• Improved HLBK result
• HLA also saw good sequential quarter growth
• HLC was underwhelming
• Forecasts unchanged
• Maintain BUY | Revised TP of RM20.79 | based on SOTP Valuation

Analyst
Samuel Woo
samuel.woo@midf.com.my

HLFG - Notice of Book Closure

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

OTHERSINTERIM SINGLE TIER DIVIDEND OF 18.0 SEN PER SHARE

Interim Dividend

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by Maybank
Buy – Target Price RM21.70

“1QFY24 results within expectations”

HLFG’s share price was recently impacted by foreign selling, with its removal from the MSCI Index, and the discounting between its market cap against the market cap of its 64% stake in HL Bank (HLBK MK, BUY, TP MYR23.00, CP MYR19.00) has since widened to -26% currently, against a long-term average of 10%. BUY maintained with an unchanged SOTP derived TP of MYR21.70.

Analyst:
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by MIDF
Buy (Maintain) – Target Price RM20.65

“1QFY24 Results: Strong Quarter Driven by HLBK and HLC”

Maintain BUY call: Revised SOTP-TP of RM20.65 (from RM23.71). The reduction was due to lower P/BV basis of 1.11x for HLBK valuation (following negative sentiment in China), as well as reducing our MSIG P/BV valuation and increasing our holding company discount to 25% (from 20% previously).

Analyst:
Samuel Woo
samuel.woo@midf.com.my

Changes in Director's Interest (Section 219 of CA 2016) - MR TAN KONG KHOON

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period

Quarterly rpt on consolidated results for the financial period ended 30/09/2023

General Meetings: Outcome of Meeting

HLFG - Notice of Book Closure

Final Dividend

Circular to Shareholders in relation to Proposed Renewal of Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

OTHERSPROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

$HLFG / 1082 (HONG LEONG FINANCIAL GROUP BERHAD)
Research by MIDF
Buy (Maintain) – Target Price RM23.71

“4QFY23 Results: Dragged by Weaker NOII”

Maintain BUY call: Revised SOTP-TP of RM23.71 (from RM22.79). Despite using a lower FY24F P/BV basis of 1.26x for HLBK valuation (following downward revisions to HLBK’s earnings forecast), higher Shareholders’ fund values in various components push the SOTP TP upward.

Analyst:
Samuel Woo
samuel.woo@midf.com.my

Quarterly rpt on consolidated results for the financial period ended 30/06/2023