Hong Leong Asia shares fall for second straight day despite strong H2 net profit
The counter drops as much as 7.9% to a low of S$2.81 on Thursday
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[SINGAPORE] Shares of Hong Leong Asia (HLA) continued to fall on Thursday (Feb 26), marking the second straight day of decline despite reporting a strong second-half profit.
The industrial group’s shares dropped as much as 7.9 per cent to a low of S$2.81 as at 9.08 am, but later pared much of the Thursday losses to be 1.6 per cent down at S$3 as at the mid-day trading break. This followed a 10.3 per cent drop to S$3.05 the previous day.
HLA on Wednesday reported a 48.6 per cent surge in net profit for its half-year ended Dec 31, 2025, with revenue up 26.2 per cent. It expects demand in the domestic market to remain mixed, though it believes that its unit China Yuchai International (CYI) should continue growing.
The persistent drop in share price came despite the strong results, and indicated a potential overhang of the October 2025 detainments of the director of CYI and former chief accountant of HLA unit and CYI operating subsidiary Guangxi Yuchai Machinery by the Chinese authorities.
The director, Wu Qiwei, who is also a former board member of CYI, is suspected of “serious violations of discipline and law” and is also “currently under disciplinary review” by the Discipline Inspection Commission of Guangxi Yuchai Machinery.
He later resigned from his positions as director of CYI and Guangxi Yuchai Machinery.
Separately, HLA said in January that Guangxi Yuchai Marine and Genset Power, an indirect subsidiary of CYI, has submitted an application to list its shares on the mainboard of the Hong Kong Stock Exchange.
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