I had to double check the numbers again to make sure i was right.
Basically there were a lot of bright spots in June. UMS , Hong Leong Asia, Hor Kew, Moneymax and Centurion are the main stand outs.
1H 2025 Returns of 55.28%. Very Very Very Satisfactory.
Also thankful for the support for every view to this sgx stock only series.
I will just briefly talk about 2 stocks. Both of which recorded good gains in excess of 20% in June itself.
Hong Leong Asia - Construction Portion is expected to be strong so no surprises there, perhaps there has been increased interest in the Singapore Construction Sector with the expected increase in HDBs and Projects. Increased Utility in their precast factory will be a good thing as it has been unprofitable in 2023/2024.
On the engines part (China Yuchai) is where all the fun is actually....YTD Gains of 156% for Yuchai while Hong Leong Asia is around 69%. Considering that HLA owns half of Yuchai, i would expect say around 78% to be fair?
In terms of fundamentals, its orderbook is full till next year June and there has been news of price increase in 2H 2025 as well as capacity increase in 2026. This is due to increased power generator demand as a result of Data Centres. These power generators serve as utility back-up power supply for these data centres (main operators are the big tech companies).
In some sites, there have been mention of increased sales of 20% for Multi-cylinder diesel engine in 1st 5 months of the year so thats a positive news.
So lets assess again 1H results and 2H 2025 results to see if this happens.
Hor Kew - Main rise in June probably came from the minutes of the AGM where more details were seen about the company's operations.
2 Years of sustainable margins and sufficient orderbook is actually pretty good enough given that the company trades at 3 to 4 PE.
From this we can tell that there is value to be unlocked.
Hor Kew is trading at around 0.6 book value($1.63). The land is 33 cents. Around 20% of book value or 30% of market cap. If this is sold and at 'a few times higher' there is so much value to be seen if dividend is to be paid out higher as well. Lets reassess the 1H 2025 results and see the margins which would indicate the future results of 2H 2025 and 2026.
The hidden value of the possible land sales makes the company much safer and attractive too.
The next important juncture will still be August where companies start reporting result.
