Latest news with #ColformGroupBerhad
Yahoo
11-05-2025
- Business
- Yahoo
Can Colform Group Berhad's (KLSE:COLFORM) ROE Continue To Surpass The Industry Average?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Colform Group Berhad (KLSE:COLFORM), by way of a worked example. 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 short, ROE shows the profit each dollar generates with respect to its shareholder investments. 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. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Colform Group Berhad is: 20% = RM19m ÷ RM96m (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.20. See our latest analysis for Colform Group Berhad One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, Colform Group Berhad has a higher ROE than the average (5.6%) in the Metals and Mining industry. That's what we like to see. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used. While Colform Group Berhad does have a tiny amount of debt, with a debt to equity ratio of just 0.092, we think the use of debt is very modest. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better. But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-02-2025
- Business
- Yahoo
Colform Makes Strong Debut on ACE Market of Bursa Malaysia with Premium of 11.11%
KUALA LUMPUR, MALAYSIA / / February 9, 2025 / Colform Group Berhad ("Colform" or the "Group"), an established steel and building material specialist in East Malaysia, made its debut on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities") today. The Company opened at RM0.40 per share, recording a 11.11% premium over its initial public offering ("IPO") price of RM0.360 per share. Colform is listed under the stock name "COLFORM" and stock code "0341". With over 20 years of experience, Colform has solidified its role as a trusted partner, delivering end-to-end steel solutions to support Malaysia's construction development from concept to completion. Headquartered in Kota Kinabalu, Sabah, Colform's offerings span across various types of downstream steel products such as roofing sheets, wall claddings and IBS steel framing systems-providing cost-efficient, labor-saving solutions tailored to meet industry standards. Colform serves a diverse clientele, including government, commercial, and private sectors, embodying reliability and innovation in every project. For the nine months ended 30 September 2024 (9MFY24), Colform recorded a gross profit of RM23.47 million, surpassing the full-year gross profit of RM21.02 million in FYE2023 despite a lower revenue of RM76.97 million compared to RM92.53 million in FYE2023. This improvement in gross profit reflects the Group's ability to optimise cost structures, enhance operational efficiencies, and focus on higher-margin products such as IBS steel framing systems. Through disciplined cost management and production optimisation, Colform has successfully improved its profitability, demonstrating resilience in a dynamic market environment. The Group's emphasis on value-added steel solutions and strategic cost-saving measures has strengthened its position in the industry, ensuring sustainable growth moving forward. Through its IPO, Colform successfully raised RM41.19 million. The proceeds are allocated to: RM9.00 million for setting up a new colour coil coating production line in Kota Kinabalu; RM4.50 million for constructing a new storage facility in Kota Kinabalu to enhance operational efficiency; RM5.10 million for expanding its market presence by establishing a branch and factory in Klang, Peninsular Malaysia; RM18.09 million for working capital purposes; and RM4.50 million for listing expenses. Mr. Kang Ket Hung, Managing Director of Colform Group Berhad, commented, "Today's listing on the ACE Market is a monumental achievement for Colform Group Berhad. This milestone represents our dedication to delivering quality steel solutions and expanding our footprint across Malaysia. The funds raised from this IPO will enable us to strengthen our operations, enhance our product offerings, and explore new market opportunities. We are excited about the road ahead and remain committed to creating lasting value for our clients, stakeholders, and the construction industry." He also added, "We would also like to express our sincere appreciation to Mercury Securities Sdn. Bhd. for their unwavering support as our Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent. The overwhelming response from investors is a reflection of the confidence placed in Colform's vision and potential. This trust inspires us to continue striving for excellence as we move forward under the leadership of our management team and the guidance of our Board of Directors." The listing provides Colform with a robust platform to execute its growth strategy and capitalise on the rising demand for innovative and reliable steel solutions in the construction sector. Mercury Securities Sdn Bhd is the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for Colform Group Berhad. About Colform Group Berhad Colform Group Berhad ("Colform") is an established steel and building materials specialist with over 20 years of experience that specialising in manufacturing, processing and trading of steel products, Colform also provides supply and installation services including IBS steel framing systems as well as project management services for construction projects. Colform primarily serving customers in the construction industry in East Malaysia. With an extensive range of offerings, including roofing sheets, IBS steel framing systems, guardrails, and more, Colform provides comprehensive solutions tailored to the needs of the construction industry. Committed to quality, innovation, and sustainable growth, Colform has a strong track record in delivering robust, reliable steel solutions across government, commercial, and private projects. For more information, visit Issued By: Swan Consultancy Sdn. Bhd. on behalf of Colform Group Berhad For more information, please contact: Jazmin WanEmail: William YeoEmail: SOURCE: Colform Group Berhad View the original press release on ACCESS Newswire
