Hong Leong Asia posts 48.6% rise in H2 net profit to S$56.8 million

[SINGAPORE] Hong Leong Asia (HLA) on Wednesday (Feb 25) reported a 48.6 per cent surge in net profit for its half-year ended Dec 31, 2025, to S$56.8 million, from S$38.2 million the year before.

Revenue stood at S$2.5 billion for the period, up 26.2 per cent from S$2 billion in the corresponding period a year prior.

The board has proposed a final dividend of S$0.03 per share.

Together with the interim dividend paid of S$0.02 per share, this marks a dividend of S$0.05 per share for FY2025, compared with S$0.04 for FY2024.

The proposed final dividend for financial year ended Dec 31, 2025 will be payable on May 15, subject to shareholders’ approval at the upcoming annual general meeting of the company, with the record date on May 6.

Earnings per share stood at S$0.0759 for H2 FY2025, up from S$0.0511 in the same period a year before.

Cost of sales widened by 23 per cent during the period to S$2 billion, from S$1.6 billion a year prior.

Other income fell by 41.3 per cent year on year to S$47.4 million for H2, from S$80.7 million in the same period in FY2024.

While the group expects demand in the domestic market to remain mixed, it said that its unit China Yuchai International should continue to grow.

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This is due to rising demand for more advanced engines from data centre applications, and growth in the export market for truck and bus applications.

For H2 FY2025, the group’s selling and distribution expenses were S$177.7 million, an increase of 3.5 per cent as compared to S$171.7 million in H2 FY2024, largely due to higher staff costs for China Yuchai, and higher delivery costs for China Yuchai and the company’s building materials unit.

“This was partially offset by lower allowance for doubtful debt and the absence of bad debts written off which were recorded in H2 FY2024 for China Yuchai,” said Hong Leong Asia.

Additionally, research and development expenses were S$159.1 million in H2, an increase of 45.4 per cent as compared to S$109.4 million a year ago, largely due to higher experimental costs, staff costs, mould costs and impairment losses of development costs recognised for China Yuchai.

The company owns a 48.7 per cent stake in China Yuchai International.

“Yuchai is working on research and development initiatives to improve its portfolio of powertrain solutions. At the same time, (its) partnerships with global industrial leaders will continue to strengthen market access,” said the bourse filing.

Shares of HLA ended Wednesday 10.3 per cent or S$0.35 lower at S$3.05 prior to the release of results.