Hidden Value in A Highland of Malaysia. Could It Also be a Value Trap?

The most striking thing about HL Global Enterprises, whose core operational asset is the Copthorne Hotel Cameron Highlands in Malaysia, is its huge cashpile compared to its market cap.

In its FY25 results announcement, the Singapore-listed company reported a cash reserve of S$63.48 million. Meanwhile, its total liabilities (with zero borrowings) are a mere S$2.19 million.

This leaves the company with a net cash position of S$61.3 million.

With a share price hovering at S$0.40, the entire company is valued at just S$37 million.

Metric	Amount
Cash (A)	S$63.48 M
Total Liabilities (with zero borrowings) (B)	S$2.19 M
Net Cash Position (A-B)	S$61.3 M
Current Share Price	S$0.40
Market Capitalization	S$37.0 M

The market is currently valuing HL Global at a 40% discount to its cash alone, implying a negative value to the group’s operational hospitality business and its real estate assets.

It has attracted it's share of value shareholders, some of whom have been in the stock for quite a while.

Using data from HL Global's annual reports, here's their shareholding comparison across three years:

Shareholder	16 Mar 2023	18 Mar 2024	18 Mar 2025
Morph Investments	2,000,400	2,519,100	2,970,000 (3.08%)
Ang Hao Yao	947,800	1,228,800	1,110,600 (1.15%)
Ramesh Chandiramani	698,600	861,300	1,440,000 (1.49%)

Key Observations:

Morph Investments has consistently increased holdings over all three years, from 2.08% to 3.08%
Ang Hao Yao increased significantly from 2023 to 2024, but reduced holdings by early 2025
Ramesh showed steady growth from 2023 to 2024, then a significant jump in 2025 (nearly doubled from 2024), moving from position #11 to position #7 in the top 20 list

GrandCopthorne CH2.26 Copthorne Hotel Cameron Highlands opened in 1996, later joining the Millennium & Copthorne group’s portfolio under Singapore’s Hong Leong Group. With 297 full-service guest rooms and apartments, it is the largest and highest hotel on Cameron Highlands.

HL Global's Copthorne Hotel Cameron Highlands saw a strong recovery in 2025.

Driven by a surge in domestic travel and corporate events, revenue jumped 14.7% to S$6.6 million.

Net profit fell 10.5% to S$1.47 million.

Beyond the hotel, there are "hidden" assets being prepped for development:

Block D Project: A 48-unit apartment project in Cameron Highlands.

• HLGE plans to sell the 48 to-be-built apartment units in Camerion Highlands.

• The costs of developing the Project are relatively low due to use of unutilised land space, ie "no land costs and no opportunity costs".

•The Project is financially viable and attractive.

-- AGM minutes

At the 2025 AGM, the Board noted that because the group already owns the land, which is "unutilised space", development costs are relatively low, ie no additional "land costs or opportunity costs".

EC Project: The major refurbishment of the group’s old commercial complex next to Copthorne Hotel into additional hotel rooms and meeting facilities to target rising MICE activities.
Melaka Project: A legacy mixed development project suspended since 1998. The Board is evaluating its best course of action.

Insights from the 2025 AGM: Addressing the "Value Trap"

At the April 2025 AGM, shareholders raised pointed questions about why such a cash-rich company remains so small and doesn't pay dividends.

Chairman Dato' Gan Khai Choon explained:

Cash Hoarding vs. Dividends: The Chairman explained that the group's cash surplus is not considered "substantial" in the face of its three major development projects (Block D, EC, and Melaka).
Borrowing Costs: Despite shareholder suggestions to use leverage for growth, the Chairman said that "high interest rates" make holding cash and earning interest a better option than borrowing.

The parent company, China Yuchai International, has a controlling stake.

China Yuchai -- which is closely tied to Hong Leong Asia and the Hong Leong Group of Kwek Leng Beng -- owns 49.11%.

The Bottom Line

HL Global Enterprises has a price-to-book ratio of just 0.43x offering a massive margin of safety.

And investors are buying the company's cash at a 40% discount and getting a profitable hotel business for free.

Even as the stock has risen 55% (from S$0.255 to S$0.40) in the past 1 year, anyone considering an entry at current prices would question if the still depressed stock necessarily equates to a compelling investment.

One "good" outcome, among several possibilities, would perhaps be a delisting offer that approaches the Net Asset Value of S$0.88 per share -- or a newly-efficient and optimistic market re-rating the stock higher, especially when the various property development projects take off.

And a "bad" outcome?

Among several possibilities, it is opportunity cost — holding a non-dividend-paying stock for years (no dividend since 2018) with little capital gains, or a delisting offer that provides only a small premium over the stock price.

Hidden Value in A Highland of Malaysia. Could It Also be a Value Trap?

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