Hong Leong Asia (H22) investor relations material

Executive summary

• 1H 2026 revenue rose 17.6% YoY to S$3,129.3M; net profit increased 63.7% to S$198.3M and PATMI rose 64.1% to S$91.9M.

• Higher engine and building-materials sales, improved gross margin, higher associate and JV earnings, and Yong Tai Loong’s contribution supported performance.

Financial highlights

• Gross profit increased 39.7% to S$597.2M; gross margin rose to 19.1% from 16.1%.

• Profit before tax from continuing operations rose 66.7% to S$248.8M; continuing-operations profit after tax was S$198.4M.

• EPS was 12.05 cents versus 7.49 cents; interim dividend increased to 3.0 cents per share from 2.0 cents.

• Other income fell to S$32.9M from S$43.4M, mainly due to absent technology-licensing income and lower grants and FX gains.

Segment performance

• Powertrain Solutions revenue rose 16.8% to S$2,732.8M; profit after tax increased 61.8% to S$156.7M, with 277,684 units sold, up 10.9%.

• Truck powertrain sales rose 20.4%; marine and genset sales increased 42.0%, and industrial off-road engine sales rose 15.8%.

• Building Materials revenue, including Yong Tai Loong, rose 24.1% to S$384.8M; profit after tax increased 49.9% to S$56.1M.

• Corporate and Others revenue increased 15.7% to S$11.6M; loss after tax widened 10.1% to S$14.4M.

• Yuchai’s higher gross margin reflected improved sales mix, high-horsepower and export engine sales, scale savings and lower warranty expenses.