This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

After nine years, Hong Leong Industries Bhd (HLI) (KL:HLIND) returns as a winner of The Edge Billion Ringgit Club Awards for the second time, again with its sprawling motorcycle business being central to its strong earnings performance.

HLI takes the award for Highest growth in profit after tax over three years in the consumer products and services category at BRC 2026, having won in the same category in 2017.

Based on the awards assessment, the group recorded a risk-weighted compound annual growth rate in profit after tax of 32.1%. The bottom line grew from RM210.9 million in the financial year ended June 30, 2022 (FY2022) to RM290.6 million in FY2023, RM387.9 million in FY2024 and RM486 million in FY2025.

That represents an increase of about 130% over three years, with HLI delivering double-digit earnings growth each year of the assessment period.

HLI owns a 69.4% stake in Hong Leong Yamaha Motor Sdn Bhd (HLYM), which manufactures and distributes Yamaha motorcycles in Malaysia. It also owns HLY Marine Sdn Bhd, which distributes Yamaha outboard motors.

This time around, Malaysia was its main growth engine amid strong demand and a shift towards higher-margin motorcycle models, offsetting the weaker contribution from its Vietnamese associate Yamaha Motor Vietnam Co Ltd.

Motorcycle and spare-parts sales jumped 20.4% year on year to RM3.18 billion in FY2025, from RM2.64 billion, accounting for about 89% of the group’s total revenue.

The latest performance bears some resemblance to its first BRC win in 2017, when motorcycles also drove its expansion. At the time, the 24%-owned Vietnamese associate successfully capitalised on the massive motorcycle market there, erasing earnings concerns after having demerged from the group’s semiconductor business and hived off its cement operations.

HLI has now also refined its operating processes and streamlined its cost structure. Investments in machine connectivity and real-time monitoring improved manufacturing productivity, resource use and data-driven decision-making.

As a result, profit grew faster than revenue. Group revenue rose 15% to RM3.57 billion in FY2025 from RM3.11 billion, while profit before tax (PBT) increased at more than twice that pace, climbing 31% to RM866 million, from RM662 million.

“The motorcycle business capitalised on our growing momentum, demonstrating both resilience and enduring consumer appeal amid a highly competitive market landscape,” HLI chairman Datuk Kwek Leng San explains in the group’s FY2025 annual report.

The strength of the franchise was also reflected in a production milestone, with HLYM rolling out its six millionth motorcycle in FY2025.

Apart from motorcycles, HLI also owns ceramic tile manufacturer Guocera Holdings Sdn Bhd, seen as its second growth pillar. It had previously streamlined its portfolio by completing the disposal of fibre cement board manufacturer Hume Cemboard Industries Sdn Bhd in November 2023, allowing it to concentrate its resources on its core consumer businesses.

The group is now eyeing growth with a RM420 million investment in an automated tile manufacturing facility in Kluang, Johor. “Once operational, this facility will manufacture premium-grade, larger-format tiles that appeal to higher-value market segments, further enriching our product mix and enhancing our market standing in the tile industry,” Kwek says.

Large-format tiles, which currently account for less than 5% of Guocera’s sales, are targeted to contribute about 25% within three years, potentially broadening HLI’s income base and reducing its reliance on a single earnings engine.

The stronger performance enabled HLI to declare and pay dividends totalling 80 sen per share in FY2025, equivalent to RM256 million. Its return on equity climbed from 14.8% in FY2023 to 18.8% in FY2024 and 22% in FY2025, while its adjusted weighted three-year ROE stood at 19.6%.

Shareholders also benefited from the stock’s appreciation. HLI’s adjusted share price rose from RM7.04 on March 31, 2023, to RM16.74 on March 31, 2026, giving it a three-year compound annual shareholder return of 33.5%.

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