Modi-Trump Trade Standoff Could Hand China the Prize
India Edition
Two large egos in a shrinking negotiation room
Welcome to India Edition, I'm Menaka Doshi. Join me each week for a ringside view of the billionaires, businesses and policy decisions behind India's rise as an emerging economic powerhouse.
You can subscribe here, and share feedback with me here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Hong Leong Industries Berhad's (KLSE:HLIND) investors will be pleased with their stellar 127% return over the last five years
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, long term Hong Leong Industries Berhad (KLSE:HLIND) shareholders have enjoyed a 63% share price rise over the last half decade, well in excess of the market return of around 3.7% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 18% in the last year, including dividends. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, Hong Leong Industries Berhad managed to grow its earnings per share at 11% a year. This EPS growth is reasonably close to the 10% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Indeed, it would appear the share price is reacting to the EPS. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Hong Leong Industries Berhad, it has a TSR of 127% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective It's good to see that Hong Leong Industries Berhad has rewarded shareholders with a total shareholder return of 18% in the last twelve months. And that does include the dividend. That's better than the annualised return of 18% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Hong Leong Industries Berhad , and understanding them should be part of your investment process. We will like Hong Leong Industries Berhad better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
16 minutes ago
- Yahoo
Declining Stock and Solid Fundamentals: Is The Market Wrong About SMRT Holdings Berhad (KLSE:SMRT)?
Explore SMRT Holdings Berhad's Fair Values from the Community and select yours It is hard to get excited after looking at SMRT Holdings Berhad's (KLSE:SMRT) recent performance, when its stock has declined 4.2% over the past three months. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to SMRT Holdings Berhad's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. How Do You Calculate Return On Equity? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for SMRT Holdings Berhad is: 30% = RM27m ÷ RM90m (Based on the trailing twelve months to March 2025). The 'return' is the amount earned after tax over the last twelve months. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.30 in profit. See our latest analysis for SMRT Holdings Berhad Why Is ROE Important For Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. A Side By Side comparison of SMRT Holdings Berhad's Earnings Growth And 30% ROE Firstly, we acknowledge that SMRT Holdings Berhad has a significantly high ROE. Second, a comparison with the average ROE reported by the industry of 11% also doesn't go unnoticed by us. Under the circumstances, SMRT Holdings Berhad's considerable five year net income growth of 72% was to be expected. We then compared SMRT Holdings Berhad's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 15% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about SMRT Holdings Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Is SMRT Holdings Berhad Making Efficient Use Of Its Profits? SMRT Holdings Berhad doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above. Summary On the whole, we feel that SMRT Holdings Berhad's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
16 minutes ago
- Yahoo
Jubilant scenes but bumpy road ahead in post-Hasina Bangladesh
Thousands of people gathered in central Dhaka this week celebrating the anniversary of the downfall of Prime Minister Sheikh Hasina and the promise of a new future for the country. In the pouring rain, the head of the interim government, Muhammad Yunus, leaders of various political parties and activists stood united as they unveiled plans for a "New Bangladesh". Across the country, people waved the national flag in concerts, rallies and special prayer sessions marking what some activists are calling the "second liberation" of this Muslim-majority nation of 170 million people. But these jubilant scenes did not tell the whole story in the last 12 months. Rights groups say there have been instances of lynching, mob violence, revenge attacks, and a resurgence of religious extremism which threaten to derail the country's journey towards democracy. Meanwhile, the ex-prime minister who was so spectacularly pushed from power watches from the sidelines of exile in neighbouring India, denying her role in the deadly crackdown and refusing to return to face charges that amount to crimes against humanity. What sparked the protests that toppled Bangladesh's PM? "I think we had a regime change, not a revolution. Fundamentally, misogyny remains intact, male dominance remains unchallenged," Shireen Huq, a women's rights activist, tells the BBC. Ms Huq headed the Women's Affairs Reform Commission, one of the bodies set up by the interim government to bring social and political changes reflecting the uprising's goals of democracy and pluralism. In April this year, the 10-member body submitted its report calling for gender equality - particularly over women's right to inheritance and to divorce, called for criminalising marital rape and protecting the rights of sex workers, who face abuse and harassment from police and others. The next month, thousands of Islamist hardliners took to the streets against the proposed recommendations, saying they were anti-Islamic and that "men and women can never be equal". The protesters - led by Hefazat-e-Islam, which has a representative on the interim government's cabinet of advisers - demanded the disbanding of the women's commission, and its members punished for making those proposals. Subsequently, no detailed public debate was held on the commission's proposals. "I was disappointed that the interim government did not support us enough when we were subjected to lots of abuses by Hefazat-e-Islam," Ms Huq says. Yunus's office did not respond to a request for comment on the allegation. Activists say the protests were just one example of how the hardliners - who had been pushed to the fringes during Hasina's tenure - had become emboldened. They have also objected to girls playing football matches in some parts of the country, women celebrities participating in commercial promotional events, and, in some instances, have harassed women in public places because of how they were dressed. But it is not just women who have borne the brunt. Hardliners have also vandalised scores of shrines of minorities like the Sufi Muslims in the past year. But, even as people like Ms Huq look to the future, Bangladesh is still confronting its past. There's a groundswell of anger against Hasina's Awami League-led government, which is accused of unlawful killings, enforced disappearances, and brutal suppression of dissent. "You have a huge constituency of people in Bangladesh who wanted to see not just accountability but vengeance and retribution," says David Bergman, a journalist and a long-time Bangladesh watcher. Ex-Bangladesh leader authorised deadly crackdown, leaked audio suggests Sheikh Hasina's final hours as a hated autocrat However, he says, "one can't continue with the injustices that existed in the Awami League period and just replicate them in the current period". But that is what Hasina's Awami League claims is happening. It says hundreds of its supporters have been lynched over the past year - allegations the interim government denies. Several journalists and supporters of the Awami League have been jailed for months on murder charges. Their bail applications have been repeatedly rejected by courts. Critics say there is no thorough investigation over those murder accusations, and they have been kept in detention only because of their previous support for the Awami League. "It takes time for stability to return after a major uprising. We are in a transitional phase," acknowledged Nahid Islam, a student leader who helped spearhead the protests and acted as an adviser to the interim government until recently. Islam agrees there are challenges facing the country, but dismisses concerns of growing Islamist influence, saying it was "part of a broader cultural struggle" that has existed for years. But there are also signs of progress. Many credit the interim government with stabilising the country's economy and, contrary to fears, the banking sector has survived. Bangladesh has met its loan obligations, kept food prices largely stable, and maintained robust foreign exchange reserves - currently at $30bn (£22bn) - thanks to remittances and international loans. Exports have also held steady. Then there are other, less easily measurable things. Islam argues that, since the fall of Hasina, "a democratic environment has been established, and now everyone can express their views freely". That is something to be celebrated in a country shaped by a history of political turbulence, military coups, assassinations, and bitter rivalries. But that is being questioned by some. The influence of student leaders over the interim government has drawn criticism. They were given the roles in recognition for their leadership in the unprecedented protests which toppled Hasina. His memories uncovered a secret jail - right next to an international airport 'The howls were terrifying': Imprisoned in the notorious 'House of Mirrors' Today, two remain in the cabinet, and critics say some controversial decisions, such as the temporary ban on the Awami League, were made under student pressure. "The government has at times complied with some of the populist demands, particularly by the students, fearing more threatening protests could otherwise erupt. However, that was the exception rather than the rule," Mr Bergman says. Meanwhile, an exiled leader from the Awami League alleges that the party's supporters are being silenced by not being allowed to contest the next poll - with most of its leaders in exile or in prison. "The elections will not be inclusive without the participation of the Awami League," Mohammad Ali Arafat, former minister in Hasina's cabinet, tells the BBC. In its latest report, the Transparency International Bangladesh (TIB) said there had been an alarming rise in mob violence while extra-judicial killings and deaths in custody had persisted in the past year. "We have overthrown an authoritarian regime, but unless we put an end to the authoritarian practices, we cannot really create a new Bangladesh," Iftekhar Zaman, the executive director of the TIB, said during the launch of the report earlier this week. As Bangladesh stands at a crossroads, the next six months will be critical. Some argue that, if there are no meaningful changes to the chequered political system, the sacrifices of those killed in the uprising could be rendered meaningless. Bangladesh announces election as country marks year since ex-PM fled
