Latest news with #KimHeng
Business Times
8 hours ago
- Business
- Business Times
Kim Heng inks deal with Singapore Energy Interconnections on submarine power projects
[SINGAPORE] Offshore marine services contractor Kim Heng has inked an agreement with a newly incorporated government-linked energy company to cooperate in submarine power projects, the Catalist-listed company said in a bourse filing said on Monday (Jun 9). Kim Heng signed the non-binding memorandum of understanding (MOU) with Singapore Energy Interconnections (SGEI), which was set up in April and has been appointed by the government to oversee the development of cross-border interconnections to enable electricity imports. The partnership covers the purposes of operating, repairing and maintaining submarine power cable systems within the Asean region, Kim Heng said. The MOU remains in force until Jun 1, 2028, or on the execution of definitive agreements or mutual agreements to terminate it, the company added. On May 30, SGEI entered a deal with Singa Renewables to jointly develop a sub-sea interconnector to enable low-carbon electricity imports from Indonesia to Singapore. Singa Renewables is a joint venture between French energy company TotalEnergies and Singapore-headquartered resource-based manufacturing group RGE. SGEI noted then that the project supports Singapore's target of importing up to 6 gigawatts of low-carbon electricity by 2035, and paves the way to realising the Asean Power Grid.
Yahoo
26-05-2025
- Business
- Yahoo
Kim Heng (Catalist:5G2) Is Looking To Continue Growing Its Returns On Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look 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. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, we've noticed some promising trends at Kim Heng (Catalist:5G2) so let's look a bit deeper. 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. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Kim Heng: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.045 = S$4.0m ÷ (S$182m - S$93m) (Based on the trailing twelve months to December 2024). Therefore, Kim Heng has an ROCE of 4.5%. In absolute terms, that's a low return but it's around the Energy Services industry average of 4.3%. See our latest analysis for Kim Heng Historical performance is a great place to start when researching a stock so above you can see the gauge for Kim Heng's ROCE against it's prior returns. If you're interested in investigating Kim Heng's past further, check out this free graph covering Kim Heng's past earnings, revenue and cash flow. While there are companies with higher returns on capital out there, we still find the trend at Kim Heng promising. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 42% over the last five years. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward. On a side note, we noticed that the improvement in ROCE appears to be partly fueled by an increase in current liabilities. Essentially the business now has suppliers or short-term creditors funding about 51% of its operations, which isn't ideal. And with current liabilities at those levels, that's pretty high. To bring it all together, Kim Heng has done well to increase the returns it's generating from its capital employed. Since the stock has returned a staggering 177% to shareholders over the last five years, it looks like investors are recognizing these changes. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. One more thing: We've identified 4 warning signs with Kim Heng (at least 1 which is concerning) , and understanding these would certainly be useful. 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.
