Latest news with #RM54m
Yahoo
17-04-2025
- Business
- Yahoo
Hextar Industries Berhad (KLSE:HEXIND) 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? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding 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. So when we looked at Hextar Industries Berhad (KLSE:HEXIND) and its trend of ROCE, we really liked what we saw. We've discovered 1 warning sign about Hextar Industries Berhad. View them for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Hextar Industries Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = RM54m ÷ (RM804m - RM351m) (Based on the trailing twelve months to December 2024). Therefore, Hextar Industries Berhad has an ROCE of 12%. That's a relatively normal return on capital, and it's around the 11% generated by the Trade Distributors industry. Check out our latest analysis for Hextar Industries Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Hextar Industries Berhad's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Hextar Industries Berhad. The trends we've noticed at Hextar Industries Berhad are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 12%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 215%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. The current liabilities has increased to 44% of total assets, so the business is now more funded by the likes of its suppliers or short-term creditors. Given it's pretty high ratio, we'd remind investors that having current liabilities at those levels can bring about some risks in certain businesses. A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Hextar Industries Berhad has. And a remarkable 303% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue. Like most companies, Hextar Industries Berhad does come with some risks, and we've found 1 warning sign that you should be aware of. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive 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
Yahoo
17-04-2025
- Business
- Yahoo
Hextar Industries Berhad (KLSE:HEXIND) 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? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding 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. So when we looked at Hextar Industries Berhad (KLSE:HEXIND) and its trend of ROCE, we really liked what we saw. We've discovered 1 warning sign about Hextar Industries Berhad. View them for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Hextar Industries Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = RM54m ÷ (RM804m - RM351m) (Based on the trailing twelve months to December 2024). Therefore, Hextar Industries Berhad has an ROCE of 12%. That's a relatively normal return on capital, and it's around the 11% generated by the Trade Distributors industry. Check out our latest analysis for Hextar Industries Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Hextar Industries Berhad's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Hextar Industries Berhad. The trends we've noticed at Hextar Industries Berhad are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 12%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 215%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. The current liabilities has increased to 44% of total assets, so the business is now more funded by the likes of its suppliers or short-term creditors. Given it's pretty high ratio, we'd remind investors that having current liabilities at those levels can bring about some risks in certain businesses. A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Hextar Industries Berhad has. And a remarkable 303% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue. Like most companies, Hextar Industries Berhad does come with some risks, and we've found 1 warning sign that you should be aware of. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive 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.
Yahoo
14-04-2025
- Business
- Yahoo
Here's Why We Think Zecon Berhad (KLSE:ZECON) Is Well Worth Watching
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Zecon Berhad (KLSE:ZECON). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. 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. Investors and investment funds chase profits, and that means share prices tend rise with positive earnings per share (EPS) outcomes. Which is why EPS growth is looked upon so favourably. Commendations have to be given in seeing that Zecon Berhad grew its EPS from RM0.014 to RM0.38, in one short year. Even though that growth rate may not be repeated, that looks like a breakout improvement. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Unfortunately, Zecon Berhad's revenue dropped 22% last year, but the silver lining is that EBIT margins improved from 76% to 192%. That falls short of ideal. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. View our latest analysis for Zecon Berhad Since Zecon Berhad is no giant, with a market capitalisation of RM70m, you should definitely check its cash and debt before getting too excited about its prospects. Theory would suggest that it's an encouraging sign to see high insider ownership of a company, since it ties company performance directly to the financial success of its management. So as you can imagine, the fact that Zecon Berhad insiders own a significant number of shares certainly is appealing. In fact, they own 78% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. Of course, Zecon Berhad is a very small company, with a market cap of only RM70m. So this large proportion of shares owned by insiders only amounts to RM54m. That might not be a huge sum but it should be enough to keep insiders motivated! Zecon Berhad's earnings per share growth have been climbing higher at an appreciable rate. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So at the surface level, Zecon Berhad is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. We should say that we've discovered 3 warning signs for Zecon Berhad (2 make us uncomfortable!) that you should be aware of before investing here. Although Zecon Berhad certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Malaysian companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
12-04-2025
- Business
- Yahoo
Investors Will Want Hil Industries Berhad's (KLSE:HIL) Growth In ROCE To Persist
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. 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. So on that note, Hil Industries Berhad (KLSE:HIL) 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. To calculate this metric for Hil Industries Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = RM54m ÷ (RM637m - RM135m) (Based on the trailing twelve months to December 2024). So, Hil Industries Berhad has an ROCE of 11%. In absolute terms, that's a satisfactory return, but compared to the Chemicals industry average of 7.9% it's much better. View our latest analysis for Hil Industries Berhad In the above chart we have measured Hil Industries Berhad's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Hil Industries Berhad for free. Investors would be pleased with what's happening at Hil Industries Berhad. The data shows that returns on capital have increased substantially over the last five years to 11%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 32%. So we're very much inspired by what we're seeing at Hil Industries Berhad thanks to its ability to profitably reinvest capital. All in all, it's terrific to see that Hil Industries Berhad is reaping the rewards from prior investments and is growing its capital base. Since the stock has returned a solid 68% to shareholders over the last five years, it's fair to say investors are beginning to recognize these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. One more thing to note, we've identified 2 warning signs with Hil Industries Berhad and understanding them should be part of your investment process. While Hil Industries 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
Yahoo
24-02-2025
- Business
- Yahoo
Is Now The Time To Put Suria Capital Holdings Berhad (KLSE:SURIA) On Your Watchlist?
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. In contrast to all that, many investors prefer to focus on companies like Suria Capital Holdings Berhad (KLSE:SURIA), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. Check out our latest analysis for Suria Capital Holdings Berhad The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Suria Capital Holdings Berhad managed to grow EPS by 8.4% per year, over three years. That growth rate is fairly good, assuming the company can keep it up. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. To cut to the chase Suria Capital Holdings Berhad's EBIT margins dropped last year, and so did its revenue. This is less than stellar for the company. In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Suria Capital Holdings Berhad's forecast profits? It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Shareholders will be pleased by the fact that insiders own Suria Capital Holdings Berhad shares worth a considerable sum. To be specific, they have RM54m worth of shares. That's a lot of money, and no small incentive to work hard. Those holdings account for over 9.2% of the company; visible skin in the game. One important encouraging feature of Suria Capital Holdings Berhad is that it is growing profits. If that's not enough on its own, there is also the rather notable levels of insider ownership. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. Now, you could try to make up your mind on Suria Capital Holdings Berhad by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Malaysian companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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.
