PETALING JAYA: Hong Leong Industries Bhd
(HLIB) may declare a higher dividend of around 30 sen in the second half of the financial year ending June 30, 2026 (2H26), potentially pushing the net dividend per share (NDPS) to 110 sen from 90 sen.
Kenanga Research said HLIB declared a higher dividend for its 1H26, which could potentially bring the full-year NDPS to 110 sen with an attractive dividend yield of 6.3%.
It declared a second interim NDPS of 50 sen in the second quarter of FY26, bringing the first-half NDPS to 80 sen versus 25 sen in the 1H25.
“There will be a potential dividend payment in 2H, based on the historical dividend payout timeline, which we estimated to be around 30 sen, thus we revised our NDPS estimate to 110 sen from 90 sen,” Kenanga Research said in a report.
For now, it maintained its financial forecast and target price of RM18.90 for the stock. This was based on a price-to-earnings ratio (PER) of 12 times FY26 earnings per share and comes at a one-time multiple premium to the passenger vehicle sector’s average forward PER of 11 times.
The group has a strong market position in the local motorcycle segment, whose prospects are buoyed by the booming gig economy.
At the time of writing, the shares traded at RM18.62, up by one-third in the last year.
