Hong Leong Bank Berhad (5819.KL) stock analysis

In our weekly check, Hong Leong Bank Berhad is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 9.

About Hong Leong Bank Berhad

Hong Leong Bank Berhad is a Financial Services company (Banks - Regional), listed on KLS as 5819.KL.

What our checks show for 5819.KL

Red flags

• The gross margin fell by 15 points, to 58.8%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 10.9% a year.
• Free cash flow is negative (-5.2% of revenue): the business spends more cash than it brings in.
• The dividend takes 180% of profit: little cushion if profit falls.
• Recovering from its deepest fall took about 4.3 years.
• Return on capital (ROCE) is only 1.6%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 4.2 points over 5 years, to 39.6%: the company keeps less of each sale as profit.
• The stock has fallen as much as 44% from a peak. Would you have held through that?

Strengths

• Analysts expect the net margin to improve by 26.6 points from today's 39.6%.
• The company keeps 39.6% of its revenue as net profit.
• A large company: market value $10.66 billion.
• Beta 0.1: the stock usually moves less than the market.

Similar companies

GLE.PA · EBS.VI · KBC.BR · ACA.PA · RILBA.CO · 1080.SR

Questions

What grade does Hong Leong Bank Berhad (5819.KL) have?

In our weekly check, Hong Leong Bank Berhad is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 5819.KL stock?

This week's biggest flags for Hong Leong Bank Berhad: Gross margin falling, Profits not backed by cash, Weak revenue forecast. In total 11 of 25 checks show a warning or a red flag.

What does Hong Leong Bank Berhad do?

Hong Leong Bank Berhad is a Financial Services company (Banks - Regional), listed on KLS as 5819.KL.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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