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Hong Leong Industries BhdXKLS:3301 +0.98%82 ROE % is 22.08% as of Mar. 2026, which is 25% above its 10-year median of 17.62. GuruFocus rates XKLS:3301 with a GF Score™ of 82/100 and a GF Value™ of RM13.88 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,306 Vehicles & Parts companies, Hong Leong Industries Bhd ranks better than 91.42% on this metric.
The historical rank and industry rank for Hong Leong Industries Bhd's ROE % or its related term are showing as below:
XKLS:3301'
s ROE % Range Over the Past 10 Years
Min: 8.01 Med: 17.62 Max: 24.5
Current: 22.5
During the past 13 years, Hong Leong Industries Bhd's highest ROE % was 24.50%. The lowest was 8.01%. And the median was 17.62%.
XKLS:3301's ROE % is ranked better than 91.42% of 1306
companies
in the Vehicles & Parts industry
Industry Median: 6.64
vs XKLS:3301: 22.50
Hong Leong Industries Bhd (XKLS:3301) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Manufacturers subindustry, Hong Leong Industries Bhd's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hong Leong Industries Bhd ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Industries Bhd's ROE % distribution charts can be found below:
* The bar in red indicates where Hong Leong Industries Bhd's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Hong Leong Industries Bhd (XKLS:3301) has a ROE % of 22.08% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hong Leong Industries Bhd and its competitors. This is 25% above median its historical median of 17.62. Over the past decade, Hong Leong Industries Bhd's ROE % has ranged from 8.01 to 24.50. According to the industry distribution chart, Hong Leong Industries Bhd ranks #112 out of 1306 companies in the Vehicles & Parts industry, placing it in the top 8.6%.
Is Hong Leong Industries Bhd's ROE % too high?
Hong Leong Industries Bhd's current ROE % of 22.08% is 25% above median its 10-year median of 17.62. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 24.50. The Vehicles & Parts industry median ROE % is 6.64. Hong Leong Industries Bhd's value of 22.08% is 232.5% above this industry median. Based on the distribution chart, Hong Leong Industries Bhd ranks #112 out of 1306 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hong Leong Industries Bhd has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Industries Bhd's ROE % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Industries Bhd ranks #112 out of 1306 companies for ROE %. This places Hong Leong Industries Bhd in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 6.64. Hong Leong Industries Bhd's value of 22.08% is 232.5% above this benchmark. Historically, Hong Leong Industries Bhd's own ROE % has ranged from 8.01 to 24.50 over the past decade. While the company's 10-year median is 17.62 vs. the industry median of 6.64, Hong Leong Industries Bhd has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.64, based on 1,306 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hong Leong Industries Bhd's current ROE % of 22.08% is 232.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hong Leong Industries Bhd and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Industries Bhd's current ROE % is 22.08%, which is 25% above median its own 10-year median of 17.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Industries Bhd (XKLS:3301) is currently considered Significantly Overvalued. The stock's GF Value™ is RM13.88, compared to a current price of RM18.60 — trading 34% above its estimated fair value. The current ROE % is 22.08%, which is 25% above median its 10-year median of 17.62 and 232.5% above the Vehicles & Parts industry median of 6.64. Hong Leong Industries Bhd's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Hong Leong Industries Bhd (XKLS:3301), the current ROE % is 22.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hong Leong Industries Bhd (XKLS:3301) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Industries Bhd stock appears to be overvalued.
The current stock price of RM18.60 is trading 34% above its estimated GF Value™ of RM13.88.
GuruFocus considers Hong Leong Industries Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:3301:
ROE %: 22.08% (25% above median its 10-year median of 17.62)
GF Value™: RM13.88 vs. price of RM18.60 (34% above fair value)
Industry Position: 232.5% above the Vehicles & Parts median (#112 of 1306)
No single metric tells the full story. See the XKLS:3301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Industries Bhd is a Malaysia-based investment holding company. Its only operating segment is Consumer products. Consumer products segment manufacture and sale of consumer products comprises motorcycles, spare parts and ceramic tiles. Geographically, it derives a majority of its revenue from Malaysia.
82GF Score
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