Hong Leong Asia Ltd. (HLA) reported profit attributable to shareholders of S$91.9 million for the half year ended Jun 30, 2026, a 64.1% year-on-year (YoY) increase, as stronger contributions from its Yuchai powertrain arm and Building Materials Unit (BMU) outweighed higher input costs.
Group revenue rose 17.6% YoY to S$3.13 billion, lifting earnings per share to 12.05 Singapore cents from 7.49 cents a year earlier. HLA declared an interim dividend of 3.0 Singapore cents per share, up 50% YoY.
Powertrain specialist Guangxi Yuchai Machinery reported revenue of S$2.7 billion, 16.8% higher YoY, and segment profit after tax of S$156.7 million, up 61.8%. Unit sales climbed 10.9% to 277,684 engines, led by a 20.4% jump in truck powertrains and strong off-road demand; marine and generator-set engines grew 42.0%, while industrial engines gained 15.8%. A richer sales mix of high-horsepower models and higher export volumes supported gross-margin expansion.
BMU revenue advanced 24.1% YoY to S$384.8 million and segment profit after tax increased 49.9% to S$56.1 million, helped by robust precast and ready-mix concrete demand in Singapore and improved pricing in Malaysia’s Tasek operations. April’s acquisition of architectural products specialist Yong Tai Loong broadened the portfolio and added to first-half earnings.
Management cited elevated fuel and logistics costs, intensified by Middle East tensions, as ongoing headwinds, but noted record precast orders in Singapore and firmer cement pricing in Malaysia cushioned margins. A private placement of 50 million new shares at S$2.90 apiece in May strengthened the balance sheet and broadened the investor base.
Looking ahead, HLA expects Yuchai to benefit from higher-specification engines for data centres, continued export growth and increased research spending on new-energy powertrains, including an ammonia-fuel engine for heavy-duty trucks. In Singapore, BMU plans additional batching plants, automation investments and an expanded mixer-truck fleet to meet public and private construction demand, while Tasek will focus on efficiency gains and greater use of alternative fuels to mitigate cost pressures in Malaysia. The group said it anticipates a “satisfactory” performance for the second half and full-year 2026, barring unforeseen circumstances.