UOB Kay Hian analyst John Cheong has initiated “buy” on Hong Leong Asia as the company’s building materials and diesel engines segments look set to benefit from a strong recovery in 2021.

On this, Cheong has pegged a target price estimate of $1.38, that’s pegged to 12 times FY2022 price-to-earnings (P/E), which is +1 standard deviation (s.d.) above mean P/E.

Hong Leong Asia is the trade and industry arm of Singapore conglomerate Hong Leong Group. It was listed on the Singapore Exchange (SGX) since 1998 and has a management portfolio of diesel engines, building materials supply chain, rigid plastic packaging, as well as air-conditioning systems.

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