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Kwan On Holdings (HKSE:01559) ROE % : -33.77% (As of Sep. 2023)


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What is Kwan On Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kwan On Holdings's annualized net income for the quarter that ended in Sep. 2023 was HK$-103.1 Mil. Kwan On Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was HK$305.2 Mil. Therefore, Kwan On Holdings's annualized ROE % for the quarter that ended in Sep. 2023 was -33.77%.

The historical rank and industry rank for Kwan On Holdings's ROE % or its related term are showing as below:

HKSE:01559' s ROE % Range Over the Past 10 Years
Min: -35.95   Med: 9.14   Max: 149.37
Current: -35.95

During the past 10 years, Kwan On Holdings's highest ROE % was 149.37%. The lowest was -35.95%. And the median was 9.14%.

HKSE:01559's ROE % is ranked worse than
93.56% of 1630 companies
in the Construction industry
Industry Median: 6.715 vs HKSE:01559: -35.95

Kwan On Holdings ROE % Historical Data

The historical data trend for Kwan On Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kwan On Holdings ROE % Chart

Kwan On Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.82 3.65 -4.70 -14.32 -29.05

Kwan On Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -14.75 -13.99 -21.29 -37.36 -33.77

Competitive Comparison of Kwan On Holdings's ROE %

For the Engineering & Construction subindustry, Kwan On Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kwan On Holdings's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Kwan On Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Kwan On Holdings's ROE % falls into.



Kwan On Holdings ROE % Calculation

Kwan On Holdings's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=-111.719/( (427.527+341.518)/ 2 )
=-111.719/384.5225
=-29.05 %

Kwan On Holdings's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=-103.07/( (341.518+268.879)/ 2 )
=-103.07/305.1985
=-33.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.


Kwan On Holdings  (HKSE:01559) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2023 )
=Net Income/Total Stockholders Equity
=-103.07/305.1985
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-103.07 / 375.474)*(375.474 / 850.3725)*(850.3725 / 305.1985)
=Net Margin %*Asset Turnover*Equity Multiplier
=-27.45 %*0.4415*2.7863
=ROA %*Equity Multiplier
=-12.12 %*2.7863
=-33.77 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2023 )
=Net Income/Total Stockholders Equity
=-103.07/305.1985
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-103.07 / -99.51) * (-99.51 / -93.678) * (-93.678 / 375.474) * (375.474 / 850.3725) * (850.3725 / 305.1985)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0358 * 1.0623 * -24.95 % * 0.4415 * 2.7863
=-33.77 %

Note: The net income data used here is two times the semi-annual (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (Sep. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Kwan On Holdings ROE % Related Terms

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Kwan On Holdings (HKSE:01559) Business Description

Traded in Other Exchanges
N/A
Address
118 Connaught Road West, Unit 3401, 28th Floor, Room 2803, Sai Ying Pun, Hong Kong, HKG
Kwan On Holdings Ltd is mainly engaged in construction-related business and property development. The company's reportable segments include Construction, Property development, and trading. Geographically the company derives the majority of its revenue from Hong Kong.
Executives
Chen Zhenghua 2201 Interest of corporation controlled by you
Sino Coronet Group Limited 2101 Beneficial owner
Lv Di Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Lv Di Kong Gu Ji Tuan Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Jiang Su Sheng Jian Zhu Gong Cheng Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Jiang Su Hua Yuan Tou Zi Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Lv Di Da Ji Jian Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Gorgeous Holding Limited 2201 Interest of corporation controlled by you
New York Private Trust Company 2201 Interest of corporation controlled by you
Rosy Height Holdings Limited 2101 Beneficial owner

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