Latest news with #HapSengConsolidatedBerhad
Yahoo
2 days ago
- Business
- Yahoo
Hap Seng Consolidated Berhad's (KLSE:HAPSENG) Dismal Stock Performance Reflects Weak Fundamentals
Hap Seng Consolidated Berhad (KLSE:HAPSENG) has had a rough three months with its share price down 15%. Given that stock prices are usually driven by a company's fundamentals over the long term, which in this case look pretty weak, we decided to study the company's key financial indicators. In this article, we decided to focus on Hap Seng Consolidated Berhad's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. 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 Hap Seng Consolidated Berhad is: 7.7% = RM733m ÷ RM9.5b (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.08 in profit. View our latest analysis for Hap Seng Consolidated Berhad Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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. On the face of it, Hap Seng Consolidated Berhad's ROE is not much to talk about. However, given that the company's ROE is similar to the average industry ROE of 8.2%, we may spare it some thought. But Hap Seng Consolidated Berhad saw a five year net income decline of 8.4% over the past five years. Remember, the company's ROE is a bit low to begin with. Therefore, the decline in earnings could also be the result of this. That being said, we compared Hap Seng Consolidated Berhad's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 18% in the same 5-year period. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Hap Seng Consolidated Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. With a high three-year median payout ratio of 79% (implying that 21% of the profits are retained), most of Hap Seng Consolidated Berhad's profits are being paid to shareholders, which explains the company's shrinking earnings. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. To know the 2 risks we have identified for Hap Seng Consolidated Berhad visit our risks dashboard for free. Additionally, Hap Seng Consolidated Berhad has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. In total, we would have a hard think before deciding on any investment action concerning Hap Seng Consolidated Berhad. The company has seen a lack of earnings growth as a result of retaining very little profits and whatever little it does retain, is being reinvested at a very low rate of return. So far, we've only made a quick discussion around the company's earnings growth. So it may be worth checking this free detailed graph of Hap Seng Consolidated Berhad's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance. 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.
Yahoo
2 days ago
- Business
- Yahoo
Hap Seng Consolidated Berhad First Quarter 2025 Earnings: EPS: RM0.041 (vs RM0.055 in 1Q 2024)
Revenue: RM1.18b (down 12% from 1Q 2024). Net income: RM101.7m (down 26% from 1Q 2024). Profit margin: 8.6% (down from 10% in 1Q 2024). The decrease in margin was driven by lower revenue. EPS: RM0.041 (down from RM0.055 in 1Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Hap Seng Consolidated Berhad's share price is broadly unchanged from a week ago. You should always think about risks. Case in point, we've spotted 2 warning signs for Hap Seng Consolidated Berhad you should be aware of, and 1 of them is potentially serious. 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.
Yahoo
11-02-2025
- Business
- Yahoo
Hap Seng Consolidated Berhad (KLSE:HAPSENG) Has More To Do To Multiply In Value Going Forward
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. In light of that, when we looked at Hap Seng Consolidated Berhad (KLSE:HAPSENG) and its ROCE trend, we weren't exactly thrilled. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Hap Seng Consolidated Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.075 = RM1.1b ÷ (RM18b - RM3.5b) (Based on the trailing twelve months to September 2024). Therefore, Hap Seng Consolidated Berhad has an ROCE of 7.5%. Even though it's in line with the industry average of 7.9%, it's still a low return by itself. See our latest analysis for Hap Seng Consolidated 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 Hap Seng Consolidated Berhad has performed in the past in other metrics, you can view this free graph of Hap Seng Consolidated Berhad's past earnings, revenue and cash flow. Over the past five years, Hap Seng Consolidated Berhad's ROCE and capital employed have both remained mostly flat. This tells us the company isn't reinvesting in itself, so it's plausible that it's past the growth phase. So unless we see a substantial change at Hap Seng Consolidated Berhad in terms of ROCE and additional investments being made, we wouldn't hold our breath on it being a multi-bagger. In summary, Hap Seng Consolidated Berhad isn't compounding its earnings but is generating stable returns on the same amount of capital employed. Since the stock has declined 55% over the last five years, investors may not be too optimistic on this trend improving either. In any case, the stock doesn't have these traits of a multi-bagger discussed above, so if that's what you're looking for, we think you'd have more luck elsewhere. Hap Seng Consolidated Berhad does have some risks, we noticed 2 warning signs (and 1 which can't be ignored) we think you should know about. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. 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
