Latest news with #RM7.4m
Yahoo
3 days ago
- Business
- Yahoo
Mayu Global Group Berhad (KLSE:MAYU) Posted Weak Earnings But There Is More To Worry About
Shareholders didn't appear too concerned by Mayu Global Group Berhad's (KLSE:MAYU) weak earnings. We did some digging, and we believe that investors are missing some worrying factors underlying the profit figures. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, Mayu Global Group Berhad increased the number of shares on issue by 8.7% over the last twelve months by issuing new shares. That means its earnings are split among a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. Check out Mayu Global Group Berhad's historical EPS growth by clicking on this link. Mayu Global Group Berhad has improved its profit over the last three years, with an annualized gain of 107% in that time. But on the other hand, earnings per share actually fell by 8.5% per year. Net profit actually dropped by 12% in the last year. But the EPS result was even worse, with the company recording a decline of 13%. Therefore, the dilution is having a noteworthy influence on shareholder returns. In the long term, if Mayu Global Group Berhad's earnings per share can increase, then the share price should too. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Mayu Global Group Berhad. Alongside that dilution, it's also important to note that Mayu Global Group Berhad's profit was boosted by unusual items worth RM7.4m in the last twelve months. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. Which is hardly surprising, given the name. We can see that Mayu Global Group Berhad's positive unusual items were quite significant relative to its profit in the year to March 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. To sum it all up, Mayu Global Group Berhad got a nice boost to profit from unusual items; without that, its statutory results would have looked worse. And furthermore, it went and issued plenty of new shares, ensuring that each shareholder (who did not tip more money in) now owns a smaller proportion of the company. Considering all this we'd argue Mayu Global Group Berhad's profits probably give an overly generous impression of its sustainable level of profitability. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 3 warning signs for Mayu Global Group Berhad you should be aware of. Our examination of Mayu Global Group Berhad has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. 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
3 days ago
- Business
- Yahoo
Mayu Global Group Berhad (KLSE:MAYU) Posted Weak Earnings But There Is More To Worry About
Shareholders didn't appear too concerned by Mayu Global Group Berhad's (KLSE:MAYU) weak earnings. We did some digging, and we believe that investors are missing some worrying factors underlying the profit figures. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, Mayu Global Group Berhad increased the number of shares on issue by 8.7% over the last twelve months by issuing new shares. That means its earnings are split among a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. Check out Mayu Global Group Berhad's historical EPS growth by clicking on this link. Mayu Global Group Berhad has improved its profit over the last three years, with an annualized gain of 107% in that time. But on the other hand, earnings per share actually fell by 8.5% per year. Net profit actually dropped by 12% in the last year. But the EPS result was even worse, with the company recording a decline of 13%. Therefore, the dilution is having a noteworthy influence on shareholder returns. In the long term, if Mayu Global Group Berhad's earnings per share can increase, then the share price should too. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Mayu Global Group Berhad. Alongside that dilution, it's also important to note that Mayu Global Group Berhad's profit was boosted by unusual items worth RM7.4m in the last twelve months. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. Which is hardly surprising, given the name. We can see that Mayu Global Group Berhad's positive unusual items were quite significant relative to its profit in the year to March 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. To sum it all up, Mayu Global Group Berhad got a nice boost to profit from unusual items; without that, its statutory results would have looked worse. And furthermore, it went and issued plenty of new shares, ensuring that each shareholder (who did not tip more money in) now owns a smaller proportion of the company. Considering all this we'd argue Mayu Global Group Berhad's profits probably give an overly generous impression of its sustainable level of profitability. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 3 warning signs for Mayu Global Group Berhad you should be aware of. Our examination of Mayu Global Group Berhad has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. 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
24-03-2025
- Business
- Yahoo
JF Technology Berhad (KLSE:JFTECH) Will Want To Turn Around Its Return Trends
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount 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. However, after investigating JF Technology Berhad (KLSE:JFTECH), we don't think it's current trends fit the mold of a multi-bagger. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for JF Technology Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.013 = RM1.8m ÷ (RM147m - RM7.4m) (Based on the trailing twelve months to December 2024). Thus, JF Technology Berhad has an ROCE of 1.3%. Ultimately, that's a low return and it under-performs the Semiconductor industry average of 5.5%. Check out our latest analysis for JF Technology Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for JF Technology Berhad's ROCE against it's prior returns. If you're interested in investigating JF Technology Berhad's past further, check out this free graph covering JF Technology Berhad's past earnings, revenue and cash flow. Unfortunately, the trend isn't great with ROCE falling from 6.7% five years ago, while capital employed has grown 285%. However, some of the increase in capital employed could be attributed to the recent capital raising that's been completed prior to their latest reporting period, so keep that in mind when looking at the ROCE decrease. It's unlikely that all of the funds raised have been put to work yet, so as a consequence JF Technology Berhad might not have received a full period of earnings contribution from it. To conclude, we've found that JF Technology Berhad is reinvesting in the business, but returns have been falling. Since the stock has gained an impressive 91% over the last five years, investors must think there's better things to come. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward. One more thing: We've identified 2 warning signs with JF Technology Berhad (at least 1 which is a bit 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. Sign in to access your portfolio
Yahoo
20-03-2025
- Business
- Yahoo
Should We Be Delighted With Winstar Capital Berhad's (KLSE:WINSTAR) ROE Of 7.5%?
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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Winstar Capital Berhad (KLSE:WINSTAR). Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. Check out our latest analysis for Winstar Capital Berhad The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Winstar Capital Berhad is: 7.5% = RM7.4m ÷ RM99m (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.08 in profit. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, Winstar Capital Berhad has a superior ROE than the average (5.0%) in the Metals and Mining industry. That's clearly a positive. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. To know the 5 risks we have identified for Winstar Capital Berhad visit our risks dashboard for free. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. It's worth noting the high use of debt by Winstar Capital Berhad, leading to its debt to equity ratio of 1.03. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company. Of course Winstar Capital Berhad may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE 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. Sign in to access your portfolio
