Charging towards an electrified future
■ HLA’s PATMI grew to S$40.7m in 1H21 (+110% yoy) on higher diesel engine
sales in China and recovery of Singapore’s construction sector.
■ We see temporary weakness for its diesel engine unit in 2H21F post strong
pre-buying in 1H, but building material unit should continue to recover well.
■ HLA continues to pivot towards sustainability through R&D efforts in New
Energy powertrains. Reiterate Add with lower SOP-based TP of S$1.05.