S41 Stock Fair Value Calculation – Private Companies Secure Majority Ownership of Hong Leong Finance Limited

April 12, 2023

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Hong Leong Finance ($SGX:S41) Limited, a Singapore-based company offering corporate and consumer financial services, has recently undergone a change in ownership. Private companies now possess 57% of the company’s shares, while individual investors own 33%. This marks a major shift in ownership, as the company was formerly majority-owned by individual investors. Their services range from loan products and foreign exchange services to wealth management and deposit accounts. Their diverse range of services has made them one of Singapore’s leading providers of financial solutions. The company is listed on the Singapore Exchange and is majority-owned by private companies. These new owners are likely to take the company in a different direction, but it is still too early to tell what this will look like.

However, with their strong financial background, it is expected that the new owners of Hong Leong Finance Limited will be able to build on their success and continue to provide quality services to their customers.

Share Price

On Tuesday, Hong Leong Finance Limited saw a slight decrease in its stock price, dipping 0.4% from its last closing price of SG$2.5 to open and close at SG$2.5. This came as a result of majority ownership of the company being acquired by a group of private investors. The investment marks a strategic move for the private investors, as well as an opportunity for long-term growth for Hong Leong Finance Limited. With their expertise and capital, the investors are likely to bring a higher level of stability and profitability to the company.

Furthermore, the company can leverage their connections to expand and develop their business across different markets. With the new ownership in place, Hong Leong Finance Limited is expected to be in a stronger position going forward. The company is likely to benefit from the private investors’ extensive experience in the financial services industry and expertise in developing long-term strategies that will help bolster their market share. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for S41. More…

    Total Revenues Net Income Net Margin
    130.88
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for S41. More…

    Operations Investing Financing
    178.01 -1.43 -79.28
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for S41. More…

    Total Assets Total Liabilities Book Value Per Share
    14.28k 12.23k
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for S41 are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    6.3%
    FCF Margin ROE ROA
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – S41 Stock Fair Value Calculation

    At GoodWhale, we have conducted an analysis of HONG LEONG FINANCE’s wellbeing. After careful consideration, we have determined that its fair value is around SG$3.2, which has been calculated using our proprietary Valuation Line. In comparison, the current market price of the stock is SG$2.5, showing that it is undervalued by 21.8%. This presents an opportunity for investors to purchase the stock at a discounted price. However, it is important to note that any investment decision should be made after considering all available information. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • Peers

    The competition between Hong Leong Finance Ltd and its competitors is fierce, with BRD-Groupe Societe Generale SA, CB Bulgarian American Credit Bank AD and Equitas Small Finance Bank Ltd all vying for the top spot. Each of these companies offer innovative financial solutions and competitive advantages, making it a tough battle to be the leading finance provider in the market.

    – BRD-Groupe Societe Generale SA ($LTS:0KVH)

    BRD-Groupe Société Générale SA is a French banking and financial services company headquartered in Paris. The company has a strong presence in Europe, Africa, and America, and provides a wide range of services including retail banking, private banking, asset management, investment banking, insurance, portfolio management, and global transaction services. In 2023, BRD-Groupe Societe Generale SA had a market cap of 8.68 billion euros. This makes it one of the largest banks in France and one of the top players in the European banking sector. The company has a strong balance sheet and a solid reputation, which has enabled them to maintain their market cap despite regulatory changes and global market volatility.

    – CB Bulgarian American Credit Bank AD ($LTS:0OK8)

    Bulgarian American Credit Bank AD is a financial services provider with a market cap of 154.32M as of 2023. The company provides a range of financial services, including banking, credit cards, insurance, and investment services. It operates a network of branches across Bulgaria, as well as a growing presence in Serbia and Montenegro. The bank also offers services for corporate clients, such as corporate banking, foreign exchange, and capital markets. The company is well-placed to benefit from the continued growth of the Bulgarian economy and the increasing demand for financial services in the region.

    – Equitas Small Finance Bank Ltd ($BSE:543243)

    Equitas Small Finance Bank Ltd has a market cap of 75.69B as of 2023. The company is a leading small finance bank in India and provides financial services to low and middle-income customers. It offers a variety of banking services such as deposits, credit, remittances, payments, and insurance products. The bank also assists in providing financial literacy and training to its customers. Equitas Small Finance Bank Ltd has a strong presence in the country with over 1,150 branches and 5,000 ATMs across 22 states and union territories in India. The bank is well-positioned to capitalize on the growth potential in India’s small finance banking sector.

    Summary

    Hong Leong Finance Limited is a finance company that enables individuals and businesses to access capital for investments. It is owned by a combination of individual investors (33%) and private companies (57%). Investment analysis of Hong Leong Finance is essential to understand how it has performed over the years, evaluate the risk associated with investing in it and determine its potential returns.

    Investors should analyze the company’s financial statements, its competitive position in the market, its dividend history, and its competitive advantages. Investing in Hong Leong Finance should be done after careful evaluation of these factors and understanding the associated risks.

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