Update 1 – Presentation – Why Hong Leong Finance is significantly undervalued at today’s price
Hi guys, just a quick update on my previous post on HLF. I am afraid that I have left out certain information regarding how banks work etc, and that it might be new looking at the balance sheets & profit and loss statements of bank.
There’s an active discussion at Value Buddies, a local investing forum, which I recommend you check out if you need clarifications. I have already covered some key points over there such as:
- How HLF generates its revenue
- What drives the earnings of HLF (and other banks)
- Why book value is used as a approximation of intrinsic value
- Ability of HLF to pay out dividends
- Impact of property cooling measures on HLF
With regards to point 5, I will include a post another day to detail my views.
