Hong Leong Finance's first physical AGM in three years saw a good turnout of interested shareholders.
Highlights From
Hong Leong
Group Of
Companies’
Annual General
Meetings
Last month (April 2023) saw the Hong Leong Group of Companies complete their Annual General Meetings (AGMs) with Hong Leong Finance (HLF) and Hong Leong Asia (HLA) welcoming shareholders back to fully physical AGMs for the first time in three years. City Developments Limited (CDL) held its AGM in a hybrid format while CDL Hospitality Trusts (CDLHT) held a fully virtual AGM. Here are some key highlights:
City Developments Limited (CDL)
Key Highlights
Completed Key Divestments in FY 2022
- South Korea: Sale of Millennium Hilton Seoul and adjoining land site
- Singapore: Collective sales of Tanglin Shopping Centre and Golden Mile Complex
Completed Strategic Acquisitions & Investments in FY 2022
- Singapore: Replenished land bank with four site acquisitions – Upper Bukit Timah Road, Jalan Tembusu, Central Square and Bukit Batok West Avenue 5
- United Kingdom: Six Purpose-Built Student Accommodation (PBSA) properties with 2,368 beds in Birmingham, Canterbury, Coventry, Leeds and Southampton
- Japan: Two Private Rented Sector (PRS) projects in Yokohama and one in Osaka
- Australia: Three developments in Brisbane and Melbourne
Read more here. For CDL’s 2022 Annual Report, please click here.
The 435-bed Altura in Birmingham is among six high-quality PBSA assets acquired by CDL last year. Conveniently located for students, the Altura is a 15-minute walk to University of Birmingham’s South Campus.
Formerly Millennium Resort Patong Phuket, the hotel is currently undergoing asset enhancements and will be repositioned as M Social Phuket when it opens towards end of 2023.
CDL Hospitality Trusts (CDLHT)
Key Highlights
Acquisition of Hotel Brooklyn
- A 189-key, 4-star upscale lifestyle hotel in Manchester, UK on 22 Feb 2022 for £22.8 million.
- Inflation-adjusted fixed lease provides stable income to increase portfolio resilience and fixed rental base.
- Attractive property yield of 7.4% at entry, which has increased to 7.8% from 7 May 2022 (annual inflation adjustment).
Build-to-Rent Project in Manchester, UK (under development)
- As of Apr 2023, construction of the superstructure has been completed to 21 of the 24 levels above ground.
- Estimated practical completion date: By 3Q 2024.
Optimising portfolio for the future
- Studio M Hotel – Refurbishment for all 360 rooms fully completed in May 2022
- Grand Copthorne Waterfront Hotel – Renovation for 549 rooms in phases which is expected to continue through Jun 2023; meeting facilities to undergo extensive rejuvenation from Apr to Jul 2023.
Read more here. For CDLHT’s 2022 Annual Report, please click here.
Hotel Brooklyn is a 4-star upscale lifestyle hotel located at the heart of Manchester city centre offering 189 guest rooms. The hotel appeals to both corporate and leisure guests and is within walking distance to the central business district.
Grand Copthorne Waterfront Hotel is undergoing asset enhancement. The renovation will take place in phases and all rooms will be upgraded with intelligent guest services and room management systems.
Hong Leong Asia (HLA)
Key Highlights
Powertrain Solutions
- Ongoing initiatives to develop new energy powertrains such as e-CVT power split hybrid powertrain, integrated electric drive axle powertrain and hydrogen fuel cell systems and hydrogen powered engines.
- Key developments:
- Joint venture with Beijing Yuchai Xingshunda New Energy Technology Co Ltd to accelerate the development, manufacture and sale of fuel cell powertrain systems as well as core fuel cell power system components for the Beijing, Tianjin and Hebei markets.
- The upgraded Yuchai S04220-61 series of engines became the first Chinese engines certified by the UN R49.07 Euro VI E stage emission standard.
- Yuchai’s new energy solutions subsidiary, Yuchai Xin Lan New Energy Power Technology Co Ltd developed and integrated a 3.5 tonne electric drive axle into an EV light duty bus from Guangxi Shenlong for the Nanning bus market.
Building Materials
- Demand for concrete and related products in Singapore rebounded as many construction projects restarted in 2022, while industry conditions remained challenging in Malaysia.
- Key developments:
- Completion of the Group’s Integrated Construction and Prefabrication Hub manufacturing facility in December 2022.
- The Group’s RMC Ecosystem Batching Plant will commence operations at Jurong Port in 2023 which will enable the Ready-Mix Concrete unit to optimise supply chain efficiencies while enabling a greener footprint operationally.
Read more here. For HLA’s 2022 Annual Report, please click here.
HLA’s Integrated Construction and Prefabrication Hub (ICPH) manufacturing facility features state-of-the-art technology to enable a high degree of automation to help meet the increasing demand for precast solutions.
A Yuchai employee conducting routine checks on the engine component machining line.
Hong Leong Finance (HLF)
Key Highlights
- HLF saw a record net profit of 54.3% increase to S$130.9 million in FY 2022, on the back of expanded NIM at 1.8% driven by strong loan growth and uplift of loan and asset yields outpacing the higher cost of deposit.
- Balance Sheet remain resilient, supported by strong capital and liquidity buffers; Capital Adequacy Ratio (CAR:16.1%) and Minimum Liquid Asset Ratio (MLA:19.5%) are well above regulatory requirements. Net assets value per share at $4.55 (Dec 2021: $4.38).
- Total loans rose by 8.9% on broad based business growth and total deposits increased by 11.3% to support net funding and liquidity requirements.
Read more here. For HLF’s 2022 Annual Report, please click here.
In 2022, HLF recorded strong loan growth and an uplift in its asset yields, which outpaced a higher cost of deposits amid the ongoing interest rate hikes.
HLF’s 28 branches are strategically located in Singapore with 27 of them in residential estates and a branch in the financial district. It also maintains a strong network of 12 SME Centres within its 28-branch network to stay close to the business community.
