Risk factor
Very poor trading liquidity
Profitability factor
Excellent dividends
About
Hong Leong Capital Berhad, an investment holding entity based in Kuala Lumpur, Malaysia, delivers a comprehensive array of financial services. Its operations are segmented into investment banking and stockbroking, fund and unit trust management, and investment holding, alongside other activities. The company's investment banking arm specializes in facilitating capital formation, encompassing the structuring and arrangement of diverse debt and equity fundraising initiatives such as initial public offerings (IPOs), rights issues, private placements, corporate bonds, sukuk issuance, and syndicated loans. This division also undertakes underwriting for debt and equity, offers mergers and acquisitions (M&A) advisory, provides agency services, and delivers treasury solutions like interest rate and foreign exchange hedging, alongside the pricing and distribution of primary bonds. Beyond this, the firm extends comprehensive stockbroking services to both retail and institutional clients, encompassing equity research, margin financing, nominee and custody facilities, and futures and options brokerage. It also manages investment solutions across various asset classes, including equities, fixed income, money market instruments, unit trusts, wholesale funds, and private retirement schemes. These services cater to a diverse client base, ranging from individual high net worth investors and retail clients to corporations, state governments, insurance companies, endowments, family offices, and charitable organizations. Furthermore, HLCB engages in trading and distribution, offers general investment management, and provides specialized unit trust and fund management services, including the sale of unit trusts. It also accepts deposits and actively invests and trades in short-term money market instruments, fixed income products, and interest rate instruments, with a notable offering in Islamic fund management services. Established in 1991, the company was initially named HLG Capital Berhad before adopting its current name, Hong Leong Capital Berhad, in November 2010. It functions as a subsidiary of Hong Leong Financial Group Berhad.
Company Valuation
Considering past and projected metrics, the stock is 'cheaper' than its peers. In particular, the stock is reasonably priced on P/E, undervalued on P/RIBP. Editor's not