Latest news with #ErdasanGroup
Yahoo
01-06-2025
- Business
- Yahoo
There's Been No Shortage Of Growth Recently For Erdasan Group Berhad's (KLSE:ERDASAN) Returns On Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So on that note, Erdasan Group Berhad (KLSE:ERDASAN) looks quite promising in regards to its trends of return on capital. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Erdasan Group Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.10 = RM17m ÷ (RM191m - RM27m) (Based on the trailing twelve months to March 2025). Therefore, Erdasan Group Berhad has an ROCE of 10%. In absolute terms, that's a satisfactory return, but compared to the Machinery industry average of 7.5% it's much better. View our latest analysis for Erdasan Group Berhad While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Erdasan Group Berhad has performed in the past in other metrics, you can view this free graph of Erdasan Group Berhad's past earnings, revenue and cash flow. We're delighted to see that Erdasan Group Berhad is reaping rewards from its investments and is now generating some pre-tax profits. About five years ago the company was generating losses but things have turned around because it's now earning 10% on its capital. In addition to that, Erdasan Group Berhad is employing 166% more capital than previously which is expected of a company that's trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance. To the delight of most shareholders, Erdasan Group Berhad has now broken into profitability. However the stock is down a substantial 97% in the last five years so there could be other areas of the business hurting its prospects. In any case, we believe the economic trends of this company are positive and looking into the stock further could prove rewarding. Erdasan Group Berhad does have some risks though, and we've spotted 2 warning signs for Erdasan Group Berhad that you might be interested in. While Erdasan Group Berhad isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. 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
New Straits Times
16-05-2025
- New Straits Times
Arrest warrant issued for ex-managing director in RM39 million CBT case
SHAH ALAM: The Sessions Court today issued an arrest warrant against Mak Siew Wei, a 50-year-old former executive director of a manufacturing company, after he failed to appear to face criminal breach of trust (CBT) charges of over RM39 million. Judge Datuk Mohd Nasir Nordin granted the application of deputy public prosecutor Law Chin How, who sought the warrant of arrest to be issued against Mak as he had also failed to report to the Malaysian Anti-Corruption Commission (MACC) for questioning since March. Mak was the executive director of AT Systematization Berhad (Erdasan Group). The judge said, "I have studied the application, and the arrest warrant is issued." Law, in his application, said on March 5, Mak was arrested by the MACC to be investigated for alleged criminal breach of trust (CBT) and was released on bail the same day. The prosecutor said Mak was to report back to the MACC on April 7 but failed to show up. "We believe Mak has fled to avoid charges. The MACC had tried to locate Mak at his residence in Damansara Perdana, Petaling Jaya, but was informed by his wife that he had not been home since early March. "The wife claimed she does not know his whereabouts, and up to today, no missing persons police report has been lodged," he said in his submission. Law said the MACC had put up notices in the media to locate Mak, but to no avail. He added that the Shah Alam magistrate's court had endorsed their April 29 application for a summons against Mak, which compelled him to appear before the Sessions Court today to face the charges. On April 13, MACC investigating officer Khairul Ariffin Ghazali returned to Mak's house, and since he was not there, the summons was served on Mak's wife, who had signed an acknowledgement on the document. However, up until the case was called today, Mak was nowhere to be seen in court. "With the summons handed over to Mak's next of kin, we have fulfilled Section 35(4) of the Criminal Procedure Code (CPC). "If the court allows, I ask for a warrant of arrest to be issued against Mak under Section 38 of the CPC," he said. It is understood that the MACC will level 14 criminal breach of trust charges involving more than RM39 million against Mak. He had allegedly committed the offences between June 2020 and November 2021. On March 24, trading of Erdasan Group shares was suspended for an hour after news that Mak was being sought by authorities. Mak was officially suspended following a March 11 special meeting, prompted by Erdasan's officers who had voluntarily provided relevant information to the company board. The company was probing potentially questionable transactions that occurred in 2020 and 2021. The company had filed a civil suit against Mak, alleging that he misappropriated RM46.47 million of company funds by diverting them to various third parties without valid justification. The company also sought a court declaration that Mak is a constructive trustee of the funds, with his assets potentially being traced to recover the misappropriated amount.
