PETALING JAYA: Analysts are upbeat over Hong Leong Industries Bhd
’s earnings prospects, driven by a favourable sales mix skewed towards higher-margin motorcycles.
Hong Leong Industries manufactures, assembles and distributes Yamaha motorcycle and boat engines in Malaysia, as well as ceramic tiles and fibre cement products.
Kenanga Research said currently around 60% to 70% of the group’s motorcycle sales mix consists of higher-margin models.
Hong Leong Industries introduced the all-new Yamaha PG-1 (priced at RM6,998) in August 2024, which is expected to be a new volume-driven model.
The research house said production started at a minimum of 500 units per month, with plans to scale up based on demand.
The company also introduced the Yamaha MT-09 4th Gen (launched in October 2024, priced at RM57,998) and XMAX 2025 (RM24,888) and TMAX Tech Max 2025 (RM75,888, launched in May at the Malaysia Autoshow 2025), all of which are margin-driven models.
“It also plans to build a new Guocera tiles plant, with production expected to begin in 2026. Fully automated, the plant can produce bigger format size tiles which command higher margins compared to the existing production line.”
For the third quarter ended March 31, 2025, Hong Leong Industries’ net profit dipped to RM98.88mil from RM99.43mil in the previous corresponding period, while revenue improved to RM893.24mil from RM758.03mil a year earlier.
For the nine-month period ended March 31, 2025, its net profit rose to RM368.86mil from RM289.57mil, while revenue grew to RM2.73bil from RM2.34bil a year ago.
Hong Leong Industries attributed the improved revenue mainly to higher market demand for motorcycles.
