KUALA LUMPUR, Aug 30 (Bernama) -- Hong Leong Financial Group Bhd (HLFG) emerged as one of the top 10 gainers at midday following its strong results for the financial year ended June 30, 2024 (FY2024).
For FY2024, HLFG registered an 11 per cent increase in net profit at RM3.20 billion compared to RM2.88 billion in FY2023, while revenue also rose to RM6.65 billion from RM6.48 billion previously, driven by improved contributions across all its operating companies.
At lunch break, HLFG's shares jumped 14 sen to RM18.60, with 893,900 shares traded.
In a note today, AmInvestment Bank Bhd said that HLFG's FY2024 earnings were within its expectations, coming in at 2.5 per cent above its estimate.
"We maintain a ‘buy’ call on HLFG with a higher fair value (FV) of RM23.20 per share from RM22.50 per share previously. Our FY2025 and FY2026 earnings forecasts have been tweaked by +8.6 per cent and +4.6 per cent, respectively, due to increased non-interest income estimates,” the investment bank said.
Meanwhile, Hong Leong Bank Bhd (HLB) recorded a net profit of RM4.20 billion for FY2024, up from RM3.82 billion the previous year. Total income expanded by 1.5 per cent to RM5.77 billion from RM5.69 billion previously.
The positive performance was supported by strong loan/financing growth, improved asset quality metrics, and healthy contributions from its associates.
At midday, HLB’s shares fell 12 sen to RM21.16, with 1.27 million shares traded.
In a separate note today, AmInvestment Bank also raised its FY2025 and FY2026 earnings forecast for HLB by 2.1 per cent and 2.6 per cent, respectively, factoring in higher net interest margin and non-interest income assumptions.
“HLB met all its key financial targets for FY2024, and the earnings of RM4.2 billion for the year were within our expectations, coming in one per cent above our forecast.
"Hence, we maintain a ‘buy’ call on HLB with a higher FV of RM24.90 per share from RM24.10 per share previously,” it added.
-- BERNAMA
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