The shareholder profile of this company may surprise you. The single largest shareholder is the Kwek family, which owns a 49% stake in HL Global. The Kwek family is prominent, with significant interests in listed companies, including City Developments (CDL) (SGX:C09
) , Hong Leong Finance (SGX:S41) , and Hong Leong Asia (SGX:H22) , among others.
The second-largest shareholder is Singapore’s state investor, Teamsek Holdings, which owns a 12% stake in the company.
Despite the high profile of these established shareholders, HL Global has remained well below the radar and, perhaps as a consequence, has been undervalued by the market for quite some time.
With a current share price of 37.5 cents and NAV of 85 cents as at June 30, 2025, HL Global is trading at just 0.44 times its NAV — the kind of crisis-era valuations inflicted on the broader property sector. Furthermore, the company’s balance sheet is free from borrowings and flushed with cash.
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The most “ridiculous” part is that the company is trading below its net cash value, with a market capitalisation of $36 million versus net cash of $61 million. Theoretically, this means that investors are essentially buying into the company with excess cash on the balance sheet and getting its business operations for “free”.
Despite trading at a discount, the market is undervaluing HL Global primarily due to its weak operating performance.
During the AGM in April 2025, shareholders questioned the slow progress of the company’s project developments and the rationale for holding large cash balances on its books, preferring that it be distributed as dividends.
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Management replied that the company is working on three main projects:
- 48-unit high-rise apartment units in Cameron Highlands
- Major refurbishment of the old commercial complex, next to Copthorne Hotel Cameron Highlands, into additional hotel rooms and meeting facilities
- Proposed mixed development project in Melaka
Therefore, it is more inclined to hold cash to avoid uncertainty in ongoing projects.
In its latest 1HFY2025 results ended June 30, 2025, the company’s revenue grew 1.8% y-o-y to $2.8 million. The slightly higher revenue growth was due to the favourable translation effect arising from the strengthening of the Malaysian ringgit against the Singapore dollar.
Net profit after tax was down by 41.4% y-o-y to just $451,000. The significant drop in net profit was attributed to the higher other expenses and lower other income.
In November 2025, China Yuchai, a subsidiary of Hong Leong Asia, whose ultimate shareholder is the Kwek family, acquired 200,000 shares at an average price of 33 cents per share. This triggered a sharp run-up in its share price in the following few trading days, hitting as high as 44 cents.
While the reason for the latest purchase remains unknown, one thing is clear: market participants are clearly reacting to it.
The million-dollar question now is whether a privatisation is on the cards, given the depressed valuation? Or will the controlling shareholder inject assets, in particular, hospitality assets, to rejuvenate the company’s operation?
Will such a move take place in the coming Year of the Horse, or pan out over the medium term? One thing is certain: the value is there for the market to realise.
