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Hopewell Holdings (Hopewell Holdings) ROE % : 27.05% (As of Jun. 2018)


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What is Hopewell Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hopewell Holdings's annualized net income for the quarter that ended in Jun. 2018 was $1,748.2 Mil. Hopewell Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2018 was $6,463.8 Mil. Therefore, Hopewell Holdings's annualized ROE % for the quarter that ended in Jun. 2018 was 27.05%.

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

HOWWY's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.71
* Ranked among companies with meaningful ROE % only.

Hopewell Holdings ROE % Historical Data

The historical data trend for Hopewell 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.

Hopewell Holdings ROE % Chart

Hopewell Holdings Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.12 6.35 6.00 4.17 17.91

Hopewell Holdings Semi-Annual Data
Jun08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
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 5.20 3.71 4.69 8.80 27.05

Competitive Comparison of Hopewell Holdings's ROE %

For the Infrastructure Operations subindustry, Hopewell 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.


Hopewell Holdings's ROE % Distribution in the Construction Industry

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

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



Hopewell Holdings ROE % Calculation

Hopewell Holdings's annualized ROE % for the fiscal year that ended in Jun. 2018 is calculated as

ROE %=Net Income (A: Jun. 2018 )/( (Total Stockholders Equity (A: Jun. 2017 )+Total Stockholders Equity (A: Jun. 2018 ))/ count )
=1143.031/( (6058.43+6709.132)/ 2 )
=1143.031/6383.781
=17.91 %

Hopewell Holdings's annualized ROE % for the quarter that ended in Jun. 2018 is calculated as

ROE %=Net Income (Q: Jun. 2018 )/( (Total Stockholders Equity (Q: Dec. 2017 )+Total Stockholders Equity (Q: Jun. 2018 ))/ count )
=1748.208/( (6218.384+6709.132)/ 2 )
=1748.208/6463.758
=27.05 %

* 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 (Jun. 2018) net income data. ROE % is displayed in the 30-year financial page.


Hopewell Holdings  (OTCPK:HOWWY) 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: Jun. 2018 )
=Net Income/Total Stockholders Equity
=1748.208/6463.758
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1748.208 / 225.504)*(225.504 / 7129.697)*(7129.697 / 6463.758)
=Net Margin %*Asset Turnover*Equity Multiplier
=775.24 %*0.0316*1.103
=ROA %*Equity Multiplier
=24.5 %*1.103
=27.05 %

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: Jun. 2018 )
=Net Income/Total Stockholders Equity
=1748.208/6463.758
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1748.208 / 426.992) * (426.992 / 84.13) * (84.13 / 225.504) * (225.504 / 7129.697) * (7129.697 / 6463.758)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 4.0942 * 5.0754 * 37.31 % * 0.0316 * 1.103
=27.05 %

Note: The net income data used here is two times the semi-annual (Jun. 2018) net income data. The Revenue data used here is two times the semi-annual (Jun. 2018) 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.


Hopewell Holdings ROE % Related Terms

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Hopewell Holdings (Hopewell Holdings) Business Description

Traded in Other Exchanges
N/A
Address
183 Queen’s Road East, 64th Floor, Hopewell Centre, Wan Chai, Hong Kong, HKG
Hopewell Holdings Ltd is an investment and infrastructure company domiciled in Hong Kong. The company operates through seven segments: property investment; hotel, restaurant, and catering operation; property development; toll road investment; power plant; treasury income; and other operations. Toll road investment, the most significant contributor to revenue, invests in toll road projects. Property investment and property development are the next most significant segments, and let, manage, develop, and sell property investments. Power plant, which contributes a similar amount of revenue as property investment and property development, operates power plant assets. The company derives the majority of income domestically, and also operates in the People's Republic of China.

Hopewell Holdings (Hopewell Holdings) Headlines

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