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(Post 1 of 300) 09/22/1999.15:24:00 |
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Looks like foreigners are in a hurry to get out. The foreign share is even cheaper than the local. Just took one lot at 2.82 By the way, I view the whole Finance sector positively as they have been quite resilient. |
| (Post 2 of 300) 09/23/1999.05:26:00 |
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Hi, Very wise choice of yours. Looks like the Singapore Finance and HL Finance would be likely going for a merge sometime later. Very good chance. Hang on to your share!!! Great upside movement at a later date. |
| (Post 3 of 300) 09/23/1999.09:14:00 |
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Hope we are both right. Tks |
| (Post 4 of 300) 10/15/1999.08:43:00 |
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Hong Leong Finance reportedly wins claims against Chia family SINGAPORE (AFX-ASIA) - Hong Leong Finance has won three claims against the estate of the late businessman Jack Chia, the Business Times reported. It said the High Court granted Hong Leong Finance claims of some 5.40 mln sgd plus interest and legal costs. |
| (Post 5 of 300) 12/01/1999.00:14:00 |
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HL Fin F - an almost forgotton stock, under heavy volume selling  1. Funds dumping ? 2. Finally close up gap formed in early Oct-99 (RED circle). 3. There is quite a high chance of re-testing 22/9 low of $2.78 Support - $2.90 (immediate) / $2.78 ~ $2.80 (strong) Resist - $3.00 (immediate) / $3.10 ~ $3.14 (suspect to be strong) |
| (Post 6 of 300) 12/16/1999.10:59:00 |
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 On-Trial (no comments) |
| (Post 7 of 300) 12/24/1999.14:36:00 |
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Double HIT !! |
| (Post 8 of 300) 12/27/1999.10:56:00 |
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It is currently facing tough resist at upper channel-line shown on previous chart. Rdgs |
| (Post 9 of 300) 01/01/2000.15:37:00 |
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Want to know why suddenly Hong Leong Finance jump ? Here is why !!! ============================ Singapore's Nov M1 Money Supply S$29.8B, Up 15% On Yr SINGAPORE (Dow Jones)--Singapore's M1 money supply rose 15% to S$29.8 billion (US$1=S$1.6663) in November from the year earlier, the Monetary Authority of Singapore said Friday. It rose 4.2% from October. M2 money supply stood at S$169.8 billion in November, an 8.1% increase from the year earlier, and an 0.1% increase from October, MAS data showed. Money Supply November Change on Month Year M1 S$29.8 bln Up 4.2% Up 15% M2 S$169.8 bln Up 0.1% Up 8.1% M3 S$181.4 bln Up 0.1% Up 6.7% M1 includes currency in active circulation and demand deposits. M2 includes M1 and "quasi-money," defined as fixed and savings deposits, as well as Singapore-dollar certificates of deposit. M3 comprises M2 plus net deposits at non-bank institutions, such as finance companies. Bk Lending +0.7% On Mo The de facto central bank also reported that bank lending in November fell 3.5% to S$147.2 billion from a year earlier, compared with a 6.2% year-on-year increase reported for October. Lending in November was up 0.7% from October, it said. Loans and other credit to the largest borrowing sector, building and construction, in November totaled S$58.5 billion, a 1.7% increase from a year earlier. In other significant sectors, lending for general commerce fell 8.3% to S$20.1 billion on the year, the MAS said. The authority also reported Asian Dollar Market assets at the end of November were down 2.2% to US$492 billion from a year earlier, compared with a 5% year-on-year fall reported for October. |
| (Post 10 of 300) 01/06/2000.21:54:00 |
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I think it was Driftaway who mentioned that one way to identify good stocks is to see their relative strength in a down market. Shouldn't we be watching this counter, then? It rebounded quite well today. |
| (Post 11 of 300) 01/06/2000.22:02:00 |
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Chartists: Look positive, right?  |
| (Post 12 of 300) 01/06/2000.22:07:00 |
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Just checked the closing trades. It was doing 2.96, and a buyer came in and took 15 lots at 3.12, clearing all sellers. Probably the same guy put 100 lots to buy at 3.12 vs 16 lots selling at 3.14. Wonder what is happening? |
| (Post 13 of 300) 01/07/2000.17:20:00 |
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HONG LEONG FINANCE LIMITED Based on available information and to the best of the Company's knowledge, the Directors announce that as of 31 December 1999, the percentage of the issued share capital of the Company in which foreign persons have an interest is 19.52 per cent. Pursuant to Article 42(3) of the Articles of Association of the Company IT IS HEREBY ANNOUNCED that in the opinion of the Directors of the Company, the aggregate foreign shareholdings in the issued share capital of the Company comprised 19.52 per cent of the issued share capital of the Company as at 31 December 1999. This percentage includes 127,319 shares which constitute 0.06 per cent of the issued share capital held by shareholders whose nationalities the Company is unable to determine positively as they have not furnished the required information. The Directors of the Company have exercised their discretion to refuse to register the transfer of any shares which will result in any shares, not previously categorised as foreign shareholdings, being so categorised. BY ORDER OF THE BOARD Yeo Swee Gim, Joanne Company Secretary Dated this 7 January 2000 Submitted by Yeo Swee Gim, Joanne, Company Secretary on 07/01/2000 to the SES |
| (Post 14 of 300) 03/10/2000.23:57:00 |
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Hong Leong Finance 1999 net profit pre-extras 96.829 mln sgd vs 53.218 Hong Leong Finance Ltd 1999 results: Net profit before extraordinaries - 96.829 mln sgd vs 53.218 mln Sales - 351.881 mln sgd vs 421.882 mln Net profit - 108.829 mln sgd vs 53.218 mln Opg profit - 159.410 mln sgd vs 100.627 mln Pretax profit - 154.055 mln sgd vs 87.396 mln EPS - 48.28 cents vs 23.64 cents Final div - 9.0 pct vs 8.0 pct The company said it is confident that it will see another good year in 2000. |
| (Post 15 of 300) 03/16/2000.09:10:00 |
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Would anyone buy HL Fin at 2.99 when the foreign share could be purchased at 2.70? This happened yesterday. A buyer of a single lot took the seller of HL Fin at 2.99! Strange. |
| (Post 16 of 300) 03/16/2000.20:29:00 |
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the buyer probably 1st time buying share or his remisier didn't advice him well. |
| (Post 17 of 300) 03/16/2000.23:13:00 |
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There are all sort of reasons for all sort of thing, what is absurd to you+me, can be very meaningful to another. Give you one possible good reason for the price dressing-up:- Maybe someone have alot of HL-Fin, KepCorp & F&N in margin account.... buying 1-lot of HL-Fin at $2.99 just save him/her from breaching the margin limit and getting a margin call !! and get a couple more days to top-up account. |
| (Post 18 of 300) 03/16/2000.23:16:00 |
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BTW, the trans was done at 4:58:29 pm - so it is a deliberate action before market close. |
| (Post 19 of 300) 03/16/2000.23:36:00 |
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Fun$ It is possible. But HL Fin is not really a counter where people buy on margin (not like L&M for example, where Indon tycoons have substantial interest financed by institutions). Liquidity of F shares is normally better than the L shares, for this stock. |
| (Post 20 of 300) 03/20/2000.08:00:00 |
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Can some kind soul advise if this share is a good buy or not ? |
| (Post 21 of 300) 03/20/2000.17:27:00 |
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Gem, it was a good buy when it dipped to $2.3 recently. at the price now i will give it a miss! |
| (Post 22 of 300) 03/20/2000.18:00:00 |
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But current level of $2.77 still cheap mah ?! Discount to book still a hefty 29%, PE only about 6x. i think fair value for this one is at least $4.3, at 1.1x Pr/bk. |
| (Post 23 of 300) 04/09/2000.05:39:00 |
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HONG LEONG FINANCE LIMITED Based on available information and to the best of the Company's knowledge, the Directors announce that as of 31 March 2000, the percentage of the issued share capital of the Company in which foreign persons have an interest is 19.51 per cent. Pursuant to Article 42(3) of the Articles of Association of the Company IT IS HEREBY ANNOUNCED that in the opinion of the Directors of the Company, the aggregate foreign shareholdings in the issued share capital of the Company comprised 19.51 per cent of the issued share capital of the Company as at 31 March 2000. This percentage includes 127,319 shares which constitute 0.06 per cent of the issued share capital held by shareholders whose nationalities the Company is unable to determine positively as they have not furnished the required information. The Directors of the Company have exercised their discretion to refuse to register the transfer of any shares which will result in any shares, not previously categorised as foreign shareholdings, being so categorised. BY ORDER OF THE BOARD Yeo Swee Gim, Joanne Company Secretary |
| (Post 24 of 300) 04/13/2000.11:43:00 |
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I'm CON-FUSED !!! First, in an interview with Straits Times, Kwek Leng Beng tells us he's not interested in a banking license here, citing competition etc. Today, it was reported in the papers that Hong Leong has been allowed by the MAS to provide corporate financial advisory services and issue corporate purchasing cards, which is tantamount to Hong Leong Finance offering banking services. What is happening ? Some kind soul care to shed some light ? |
| (Post 25 of 300) 05/08/2000.16:22:00 |
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DBS on May 3rd issued an OUTPERFORM recommendation for Hong Leong Finance Ltd . Based on the local price of SGD2.35, the stock is trading at forward PERs of 4.5 times FY00 earnings and 4.1 times FY01 earnings. Based on the foreign price of SGD2.51, the stock is trading at forward PERs of 4.8 times FY00 earnings and 4.4 times FY01 earnings. Finance companies are now allowed to install ATMs at their branch premises. DBS believes this is a prelude to further changes for finance companies in the longer term. With the dismantling of some of these restrictions, this should help to enhance the value of finance business. |
| (Post 26 of 300) 05/08/2000.17:57:00 |
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an old email from broker, but still relevant: HLF -- the largest finance company on the island -- posted a hefty 82% jump in net profit to S$96.8m ($56.9m) for the year ended December 1999. Profits grew on the back of lower provisions -- down 87% to S$9.5m -- and higher interest margins -- thanks to lower borrowing and inter-bank rates. However, the company suffered a 17% decline in operating profits to S$351.9m, due to weak loan growth in 1999. HLF's bottom line also received a big boost from subsidiary Singapore Finance, which chalked up a 26% rise in net profit to S$41.4m, on the back of lower provisions and a positive loan growth. With the Singapore economy recovering strongly, HLF's looks set to improve its performance this year. More people are purchasing new homes and cars while the outlook for the loans market -- a key source of income for financial companies -- looks promising in 2000. However, not all is rosy for HLF. Despite the exemplary earnings report and the promising business outlook, the financial firm faces an uncertain future. Its standing is under threat from the government's move to further liberalise the finance industry, and tougher competition from banks and stockbroking houses. Banks are in a privileged position as they can provide the same services that finance companies offer, but not vice versa. Backed by their stronger financial backbone and a larger pool of customers, banks are a real threat to the relevance of finance companies in Singapore. While it remains to be seen what measures the Monetary Authority of Singapore will unveil to further open up the financial industry, it is unlikely that HLF's territory will be afforded any protection from the banks and stockbroking houses. It will therefore be important for HLF to either adopt new strategies or to merge with other powerhouses in the industry, to help it retain its foothold and fight off the competition. To keep up with the times, HLF recently announced plans to jump onto the e-commerce bandwagon. It sees this as a bid to cut costs, improve efficiency and provide better services to customers. However it remains to be seen whether this foray onto the internet is a genuine venture or merely a bid to stoke market interest in its ailing stock. With the current depressed sentiment in financial counters, we do not see HLF's stock making any substantial gains in the near term. On the other hand, the stock's 24% discount to book value of S$3.92 means that its downside will be fairly limited. Saying that, we see HLF trading in a wide range between S$2.50 to S$3.20 over the next few months, unless there are new developments in the finance industry. |
| (Post 27 of 300) 06/03/2000.06:04:00 |
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Hong Leong Finance, Singapore Finance plan cybercafe network: report SINGAPORE (AFX-ASIA) - Hong Leong Finance Ltd and Singapore Finance Ltd, both units of the Hong Leong Group, are planning to establish a network of cybercafes and a string of ATMs in their branches, the Business Times quoted Singapore Finance general manager Jeffrey Chan as saying. jb/av AFN BLS95-02Jun00 00:40 GMT |
| (Post 28 of 300) 06/16/2000.16:03:00 |
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to merge with singapore finance ? |
| (Post 29 of 300) 07/08/2000.02:52:00 |
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Foreign Shareholdings Based on available information and to the best of the Company's knowledge, the Directors announce that as of 30 June 2000, the percentage of the issued share capital of the Company in which foreign persons have an interest is 19.50 per cent. Pursuant to Article 42(3) of the Articles of Association of the Company IT IS HEREBY ANNOUNCED that in the opinion of the Directors of the Company, the aggregate foreign shareholdings in the issued share capital of the Company comprised 19.50 per cent of the issued share capital of the Company as at 30 June 2000. This percentage includes 122,558 shares which constitute 0.05 per cent of the issued share capital held by shareholders whose nationalities the Company is unable to determine positively as they have not furnished the required information. The Directors of the Company have exercised their discretion to refuse to register the transfer of any shares which will result in any shares, not previously categorised as foreign shareholdings, being so categorised. BY ORDER OF THE BOARD Yeo Swee Gim, Joanne Company Secretary Dated this 7 July 2000 Submitted by Yeo Swee Gim, Joanne, Company Secretary on 7/7/2000 to the SGX |
| (Post 30 of 300) 08/16/2000.19:09:00 |
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My view is that finance companies operate in a niche and arent easily undermined by big banking. Is this sleeping giant awakening? Vested interest. |
| (Post 31 of 300) 08/23/2000.00:47:00 |
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Hong Leong Finance H1 net profit pre-extras 54.346 mln sgd vs 48.768 SINGAPORE (AFX-ASIA) - Hong Leong Finance six months to June results: Net profit before extraordinaries - 54.346 mln sgd vs 48.768 mln Extraordinary gains - 2.302 mln sgd vs nil Net profit - 56.648 mln sgd vs 48.768 mln Opg income - 171.821 mln sgd vs 175.842 mln Pretax profit - 85.362 mln sgd vs 76.219 mln EPS - 24.06 cents vs 21.65 Interim div - nil; unchanged In the first half, total loan assets grew on the back of a selective pick-up in lending activity, principally in hire-purchase financing, the company said in a statement. "The pick-up in lending activity is expected to continue although loan yields remain competitive. With the expected improvement in the domestic economy, the outlook for the rest of the year remains promising," it said. |
| (Post 32 of 300) 09/02/2000.20:03:00 |
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heard this company bought something ??? |
| (Post 33 of 300) 09/08/2000.17:58:00 |
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From ING Barings 23 Aug 00 HONG LEONG FINANCE: BUY S$2.72 § Hong Leong Finance’ s 1H00 underlying profits were S$82.2m compared with S$86.7m in 2H99 and significantly higher than our forecast. § The weaker underlying profit trend is expected to continue in 2H00 as volume growth is offset by a squeeze on net interest spreads due to stiff competition. Maintain Buy with revised fair value and target price of S$4.00. 1H00 results weaker. Hong Leong Finance’ s underlying profits in 1H00 of S$82.2m were 5% below 2H99 although stronger than our forecast. The underlying profit was driven mainly by volume growth, where loans advanced by 11% over 2H99. Total income of S$175.6m was 2% lower than 2H99 due largely to lower operating income (mainly interest income). Good loan volume. Loans grew by 11% over 2H99 to S$4.9bn, while deposits grew by a slower 5%. We estimate that average interest earning assets (AIEA) rose by a slower 3% in 1H00. Also, our estimate of the earning rate fell by 10 basis points to 3.04%, which we believe was attributable to steep competition particularly in the car hire purchase loans. However, we believe that the paying rate contracted by a smaller 7 basis points leading to a contraction in net interest spread by 3 basis points to 1.58%. Write-back in provisions. Hong Leong Finance indicated that there was a write-back of S$3.2m in specific provisions in 1H00. We believe that this is expected to continue into 2H00 as the improving economy lowers the NPLs of the group. However, the outlook remains competitive, as we believe that while volume growth will continue, net interest spread is expected to contract further. Revising underlying profit forecast downwards. We have revised our underlying profit forecast downwards for FY00 by 4% to reflect the weaker spread. However, due to the write-back of provisions, net profit has been revised upwards marginally by 2%. In any case, as our fair value is based on the discounted underlying profits, net of tax, we have revised our fair value and target price downwards from S$4.32 to S$4.00. Still relatively cheap. In spite of our downward revision in underlying profits, Hong Leong remains relatively undervalued with a forecast P/UP of 3.8x FY00 and FY00 P/BV of 0.6x. While the increasing competition in the financial sector will see lower net interest spreads, we believe that given its size, the group will be able to remain competitive. We are maintaining our Buy recommendation. Target price: S$4.00 |
| (Post 34 of 300) 10/10/2000.00:13:30 |
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FOREIGN SHAREHOLDINGS
Based on available information and to the best of the Company's knowledge, the Directors announce that as of 30 September 2000, the percentage of the issued share capital of the Company in which foreign persons have an interest is 19.50 per cent. Pursuant to Article 42(3) of the Articles of Association of the Company IT IS HEREBY ANNOUNCED that in the opinion of the Directors of the Company, the aggregate foreign shareholdings in the issued share capital of the Company comprised 19.50 per cent of the issued share capital of the Company as at 30 September 2000. This percentage includes 115,858 shares which constitute 0.05 per cent of the issued share capital held by shareholders whose nationalities the Company is unable to determine positively as they have not furnished the required information. The Directors of the Company have exercised their discretion to refuse to register the transfer of any shares which will result in any shares, not previously categorised as foreign shareholdings, being so categorised. BY ORDER OF THE BOARD Yeo Swee Gim, Joanne Company Secretary Dated this 9 October 2000 Submitted by Yeo Swee Gim, Joanne, Company Secretary on 09/10/2000 to the SGX |
| (Post 35 of 300) 10/11/2000.13:51:47 |
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Growing loans book a struggle for Hong Leong Finance, DBS(Research from Sassy (Sassoon), 11 Oct): In the current lean market for new loans, incumbents or market leaders among banks and finance companies are struggling to hold on to existing customers and loans while making little headway in securing new loans. In a meeting with Hong Leong Finance yesterday, we were told growing the loans book has been difficult. Any loans growth this year would be "modest". The finance company said new housing loans have been hard to come by, given thin demand in an over-supplied residential property market. In 1H2000, HLF’s loans book grew by 5.4% over the end-99 level to S$4.9b. We were expecting the loans portfolio to grow by another 4% to S$5.1b in the second half, leading to a modest 10% year-on-year growth. We are revising second half growth to 2% to S$5b. On that revised assumption, we expect a 6% growth in net interest income to S$239.5m and an unchanged 7% growth in EPS to 46¢. Last year, HLF’s loans stagnated at S$4.6b but EPS bounced up 82% to 43¢ from a crisis low. HLF traditionally does the business which banks consider too small to handle. But nowadays, hardly any business seems too small for banks striving to grow and improve returns on equity. Banks seem to go for personal loans and car financing as aggressively as they go for housing loans. HLF, however, believes it still has a niche in providing no-frills services to the man-in-the-street often ignored by banks. It said competition from banks in the hire purchase market has not been too keen. Hire purchase financing typically accounts for about 35% of HLF’s loan portfolio. Property and housing loans account for 55% and share financing, under 10%. HLF continues to operate with two finance company licenses and separate listings, one in the name of Hong Leong Finance and the other in the name of Singapore Finance. It believes retaining the 2 licenses will give it some flexibility in an industry restructuring which it expects to come in time. The Monetary Authority of Singapore has come up with liberalisation or restructuring blue prints for banking, insurance and stockbroking. HLF anticipates one for finance companies soon. At S$2.40, HLF is trading at 5.2x revised current-year estimate and 42% discount to book NTA of S$4.17. In our view, last elaborated in a report on April 19, HLF makes a good takeover target, would be worth 1x book NTA and presents a good fit with a small bank eager for growth such as Keppel TatLee Finance. However, the idea runs up against a perception that the Hong Leong group would not sell, and may not mind hanging on even if the stock stays perpetually under-valued. Under the present circumstances, the stock is at best a "hold". |
| (Post 36 of 300) 11/10/2000.09:02:40 |
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Folks,
This latest development will have a major impact on Hong Leong Finance bottomline, as unsecured loans to individuals (overdrafts, revolving credits, high-priced prestige credits etc) are the fastest growing segment of loan growths in the domestic banking & finance scene. Note below that they are the FIRST (thus far only) finance company to have secured this privilege,but have other first as well. The consolidation in the finance sector has left them clear and by far the biggest player. There is also talk that it might merger Singapore Finance back into its fold, so as to avoid duplication gain better economies of scale and greater capital base to grow its business. This stock is just TOO CHEAP at S$2.39 (both foreign and local) as it trades at a PE of just 5x, versus the 20x the banks command. I'm a keen buyer of the stock and have vested interest. Warren ====================================================================== Business Times 10 Nov 2000 Hong Leong secures major MAS exemption Unsecred loan up to 0.5% of capital per customer, rather than just $5,000 By Conrad Raj Hong Leong Finance has become the first finance company to be allowed by the Monetary Authority of Singapore (MAS) to lend up to 0.5 per cent of its capital funds to any one customer without collateral. With capital funds of about $884 million at the end of last year, the finance company -- Singapore's largest -- can now provide any of its customers unsecured facilities amounting to about $4.4 million. Under the Finance Companies Act, no finance company can extend unsecured loans of more than $5,000 to any single customer -- whether an individual or a company. The exemption for Hong Leong was announced through a Government Gazette notification on Oct 31. Hong Leong has total deposits of $4.61 billion and total loans of $4.63 billion. Responding to queries from BT, the MAS said yesterday that Hong Leong was the only finance company which had applied for exemption. It was granted the exemption subject to the 0.5 per cent limit. "In granting the exemption, MAS considered the track record of Hong Leong Finance Ltd. "This is in line with the policy, announced in December 1998, to shift from 'one-size-fits-all' regulation to a supervisory approach that allows the better-managed finance companies more leeway in managing their risks without compromising prudential standards," MAS said. Market observers said the MAS decision was a shot in the arm for the finance company sector which some have come to regard as a "sunset industry" in view of the Singapore government's move to liberalise the financial sector to give bigger global players more room. "It shows that we still have a role to play in the financial sector and places Hong Leong almost in the same category as banks in this area," said a finance company executive who declined to be named. A spokesman for the Finance Houses Association of Singapore (FHAS), who appeared to have been taken by surprise by the development, said: "It's a step in the right direction and should be good for the industry as a whole." The number of finance companies -- which cater largely to less financially sophisticated individuals and small and medium-sized companies -- has dwindled to just 14 now from double that number just a couple of years ago. The number is expected to shrink further as bank-owned finance companies merge their operations with those of their parents and as smaller ones are bought over. Local banks, too, are subject to limits on unsecured credit facilities to individuals. The MAS prescribes that banks may grant unsecured credit facilities only to individuals whose annual incomes are at least $30,000. For these individuals, a bank may grant a credit card limit of up to two months of the individual's income. In addition, a bank may grant an individual an unsecured credit facility of up to two months of the individual's income. Banks are also limited in granting unsecured credit facilities to directors and related companies. Section 29(1)(d) of the Banking Act limits such facilities to $5,000. It was at the 30th anniversary dinner of the FHAS in December 1998 that MAS managing director Koh Yong Guan announced the move away from regulation to supervision, placing "greater responsibility for loan decisions on the finance companies without lowering overall prudential standards". Hong Leong has gained most from this shift in MAS policy. Earlier in the year, together with other well-capitalised finance companies, it was allowed to: install automated teller machines; offer financing for initial public offerings; provide corporate advisory services; and issue corporate purchasing cards for business-to-business transactions over the Internet. |
| (Post 37 of 300) 11/10/2000.09:53:10 |
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Hi Warren,
Noticed that there has been very heavy volume past few days in Hong Leong Finance. Prices too have been volatile, first shooting up to $2.45 high, then suddenly dropping back $2.26 low, and now today $2.48 high! What is going on? |
| (Post 38 of 300) 11/10/2000.11:07:25 |
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Greeny,
Yes, I saw that too. I think some one (IH?) has pulled off a quick smash-and-grab tactic. My reasoning as follows: HL Finance is typically thinly traded, where daily volumes can be as low as just 1,000 shares! High volume during normal times (before any news event like today's BT story) would be 50-60 lots. Prices during the past few weeks have been quite stable, with just 1-3c ranges and trading mostly between $2.33 and $2.38. Therefore i thought it real strange that the stock would suddenly get 'rushed' up to $2.46 (but on low volume of 20,000 shares) only to be followed quickly by a dropback down to $2.26 on Nov 8. The interesting thing is, volumes quickly swelled to 452,000 that day, followed by another hefty 488,000 the next day, and thus far today (10.45am) about 90,000 have changed hands, with a high of $2.54. It looked like someone knew of the latest MAS concession granted to Hong Leong Finance (see my earlier posting) and wanted to get stock but realised this counter is too thin. Decided then to do a 'shake the tree' by organising a smash-and-grab exercise. That would cause weak and worried shareholders to toss out their stock at the lows, while the IH group stood and just collected as much as they could! I might appear like I'm spinning a yarn, but thus far, the market and news events appear to support my stance. Welcome any other opinions. Warren |
| (Post 39 of 300) 11/11/2000.02:24:13 |
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Hong Leong Finance gets exemption from unsecured lending limit policy
SINGAPORE (AFX-ASIA) - Hong Leong Finance Ltd has obtained regulatory approval to lend up to 0.5 pct of its capital funds to an individual client without collateral, the Business Times newspaper reported. It said Hong Leong Finance is the first company to be granted such an exemption by the Monetary Authority of Singapore. "In granting the exemption, MAS considered the track record of Hong Leong Finance," the newspaper said, quoting a MAS report. At end-1999, the company's capital funds reach 884 mln sgd, allowing a customer to borrow up to 4.4 mln sgd in unsecured credit. Under the Finance Companies Act, a finance company can only lend up to 5, 000 sgd in unsecured loan to any company or individual. |
| (Post 40 of 300) 11/11/2000.21:34:09 |
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Warren,
i'm with you. noted that too on wed & thu. but i wasn't convinced by the sell-down and held on to mine. just feel bad for those who've sold after seeing the high vol. at the sell queue on those 2 days.. rgds, xdollar |
| (Post 41 of 300) 11/12/2000.12:31:49 |
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Straits Times 11 Nov 2000
http://straitstimes.asia1.com.sg/6/money/sinb16_1111.html Hong Leong Finance targets SMEs By DEBORAH NG HONG Leong Finance will target small and medium-sized enterprises (SMEs) after being given approval by the Monetary Authority of Singapore (MAS) to lend up to 0.5 per cent of its capital funds to any one client without collateral. ""We're looking to SMEs as they're our niche market,'' said Hong Leong group corporate affairs manager Gerry De Silva. It said in a statement that it will ""incorporate this facility into its financing package for SMEs to boost their attractiveness''. ""All unsecured credit lines will be subject to detailed credit analysis and monitoring,'' said Hong Leong Finance's general manager Ong Lay Khiam. The company was unable to disclose the exact increase in customers it expected to gain, though it hoped to reach out to as many SMEs as possible. The Monetary Authority of Singapore (MAS) said Hong Leong Finance was the only finance company which had applied for the exemption from its unsecured lending policy, and that it had considered the company's track record. ""This is in line with the policy, announced in 1998, to shift from a "one size fits all' regulation to a supervisory approach that allows the better-managed finance companies more leeway in managing their risks without compromising prudential standards,'' the MAS said. Under the Finance Companies Act, no finance company can extend unsecured loans of more than $5,000 to any single customer, whether an individual or company. |
| (Post 42 of 300) 11/21/2000.12:13:48 |
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Research reproduced with permission from Ong Co
Summary - Hong Leong Finance(HLF) has, as recently reported, become the first finance company in Singapore to be exempted from a S$5,000 limit for an unsecured loan for a single customer. This levels the playing field a little for HLF to move aggressively into the more lucrative segment of unsecured credit. Comment Monetary Authority of Singapore(MAS) has approved HLF to lend up to 0.5% of its capital funds to any customer without collateral. Based on capital funds as at 31 December 1999 of S$884 million, the company can now grant unsecured loans of up to S$4.4 million per customer. It is the only finance company which had applied for the exemption and MAS had considered HLF’s track record before making the decision. We believe that this is a positive development for HLF as it allows HLF to compete against the banks in the more lucrative segment of unsecured lending. Although margins are better for unsecured lending, the risk involved is also higher. However with proper risk assessment, we think HLF can now deploy additional funds to segment that will boost its profitability. This development is significant in that HLF is the only finance company to compete in the unsecured credit market. This is in line with the government’s move to liberalise the finance sector. We are of the view that the new guidelines would favour the larger companies and this development further strengthens that view. As the largest non-bank backed finance company in Singapore, we expect HLF to enjoy significant regulatory advantages over its peers when the finance sector liberalization measures are announced in 2001. This would allow HLF to enjoy rerating in its stock price. Based on last closing price of $2.51, HLF is trading at an undemanding level of 0.6x book and 5.0x prospective PE. The smallest local bank, Keppel TatLee Bank, was last trading at 1.2x book and 11.1x prospective earnings. Therefore we think there is potential for HLF to trade up to 0.8x book given the near term prospect of better profitability. This put fair value based on 0.8x book at S$3.35. BUY |
| (Post 43 of 300) 12/07/2000.16:13:04 |
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STRONGLY DISAGREE with the Fraser Securities analyst Violet Soh's recommendation below. Stock selling for less than half of its book NTA (all other banks sell for upto 2x book). Earnings increase each year, PE goes down to just 4.4x 2002, and yet still say sell?
Warren =================================================================== Hong Leong Finance Sell Price S$2.39 Fair Value S$4.88 Year to Dec 1999 2000F 2001F 2002F Net Profit (S$m) 108.8 112.1 120.8 128.3 EPS (Scents) 39.5 48.0 51.5 54.6 EPS Growth (%) 64.7 21.5 7.4 6.0 PER (x) 6.1 5.0 4.6 4.4 Comments : Although Hong Leong Finance secured MAS exemption to lend up to 0.5% of its capital funds to any one customer without collateral, this only underscores the increasingly difficult outlook for the finace industry. In the past, finance companies are not allowed to provide unsecured lending. Consumer banking, the mainstay of finance companies, is being encroached by both local banks and foreign commercial banks. All of the five listed local banks have identified consumer banking as a key potential growth area and resources have been deployed there. Meanwhile, the entry of the four foreign "Qualifying Full Banks" would also translate into greater competition for finance companies. MAS plans to allow up to six QFAs in the years ahead. In essence, this would imply significant margin erosion ahead. Prior to financial deregulation, Hong Leong Finance's net interest margin was around 2.5% but we envisage that it will steadily deteriorate to around 1.6% on average going forward. On valuation grounds, Hong Leong Financeis trading at a steep 51% discount to its Economic Fair value of S$4.88/share. This is based on a long term prospective ROE of 9% versus pre-Asian Crisis average of 12%. But, using our Economic Value Model, market is imputing a long term forward ROE of 2% compared with the company's cost of equity of 7.5%, based on current share price. Thus, market expects the company to grossly destroy shareholder value. We believe that this assessment, however, is too pessimistic. Hong Leong Finance, as the largest finance company in Singapore, is likely to merge with other finance companies and become a niche player in an increasingly difficult market. Thus, we expect it to slightly underperform historic ROE but not to the extent as suggested by the company's current share price. Overall, therefore,we would recommend that any strengthening in the share price would provide a good exit opportunity. We rate the company a SELL. |
| (Post 44 of 300) 01/01/2001.02:10:49 |
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HLF Scheme Unlikely To Boost Shrs
Source : Dow Jones Shares of Hong Leong Finance (H09) unlikely to react to company's move to stay ahead of competition by giving away S$30 million in gift vouchers. While move may initially increase HLF's market share, move likely to spark stiffer competition in finance industry over longer term. Low liquidity of shares another factor in stock's expected lackluster performance, traders say. Shares closed yesterday down 0.4% at S$2.45.(AXH) |
| (Post 45 of 300) 01/09/2001.19:54:00 |
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another one of those singapore gems that seems to be ridiculouly LOW priced...
p.e ratio less than 5. 50% of book value. I thought banks were trading at twice book and still considered cheap. Unless a "finance company" is not a "bank" 
Easily available today at the $2.44-$2.45 level.... Should merge local and foreign soon like the banks did... Merger with singapore finance might create a bigger company that might attract larger funds.... Liquidity might then improve by leaps and bounds. Market may then be prepared to give it a higher rating... A simple pe of 10 would more than double the price...{if earnings are up to par}... Final results should be out soon... Stay invested. |
| (Post 46 of 300) 01/10/2001.03:03:57 |
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FOREIGN SHAREHOLDINGS
Based on available information and to the best of the Company's knowledge, the Directors announce that as of 31 December 2000, the percentage of the issued share capital of the Company in which foreign persons have an interest is 19.50 per cent. Pursuant to Article 42(3) of the Articles of Association of the Company IT IS HEREBY ANNOUNCED that in the opinion of the Directors of the Company, the aggregate foreign shareholdings in the issued share capital of the Company comprised 19.50 per cent of the issued share capital of the Company as at 31 December 2000. This percentage includes 113,482 shares which constitute 0.05 per cent of the issued share capital held by shareholders whose nationalities the Company is unable to determine positively as they have not furnished the required information. The Directors of the Company have exercised their discretion to refuse to register the transfer of any shares which will result in any shares, not previously categorised as foreign shareholdings, being so categorised. Submitted by Yeo Swee Gim, Joanne, Company Secretary on 09/01/2001 |
| (Post 47 of 300) 01/10/2001.19:01:13 |
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Ready and ripe for recovery...
HONG LEONG FINANCE... All the finance companies are starting to trade upwards... The LOWS have been seen... Fundamentals WILL prevail....and these stocks will start to trend upwards... The best of the lot is of course , none other than HLF. Soon the market will realise the ridiculous low prices that they trade at... HLF will be the principal beneficiary... Just a matter of time ... Between 1 day to 10 years... Thats all you need to wait.... Even the BEAR will run from this one.    |
| (Post 48 of 300) 01/10/2001.19:08:00 |
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JUST CHECK THESE FIGURES OUT....FUNDAMENTALISTS
http://info.sgx.com/webcorannc.nsf/2466193e3e3937be4825655300242a8d/b1c91236626654d14825694200248e05?OpenDocument |
| (Post 49 of 300) 01/16/2001.14:04:15 |
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slow and steady mop up of HLF{F}
FIRST 6 MONTHS.... REVENUE...$171m PRETAX....$85m NET.......$54m EPS.......24.06 CENTS And thats just 6 months. Full year to be announced soon.Be induced to buy.This is an inducement. |
| (Post 50 of 300) 01/16/2001.21:36:40 |
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Continue norhtwards MR.HON LEONG FINANCE{FOREIGN}...LOCAL ALSO CAN ....for those who have 'em.
Dirt cheap valuations... Matter of time... Cheaper than all the banks... And yet A BANK. onwards ho..... |
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