South Malaysia Industries Bhd (XKLS:4375) Return-on-Tangible-Asset: 3.83% (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XKLS:4375 South Malaysia Industries Bhd XKLS:4375
36 GF Score
Price RM0.20
GF Value RM0.36
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is South Malaysia Industries Bhd Return-on-Tangible-Asset?

South Malaysia Industries Bhd XKLS:4375 36 Return-on-Tangible-Asset is 3.83% as of Mar. 2026. GuruFocus rates XKLS:4375 with a GF Score™ of 36/100 and a GF Value™ of RM0.36 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 3,073 Industrial Products companies, South Malaysia Industries Bhd ranks better than 52.36% on this metric.

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. South Malaysia Industries Bhd's annualized Net Income for the quarter that ended in Mar. 2026 was RM6.04 Mil. South Malaysia Industries Bhd's average total tangible assets for the quarter that ended in Mar. 2026 was RM157.43 Mil. Therefore, South Malaysia Industries Bhd's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.83%.

The historical rank and industry rank for South Malaysia Industries Bhd's Return-on-Tangible-Asset or its related term are showing as below:

XKLS:4375' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -4.45   Med: -1.94   Max: 13.69
Current: 3.59

During the past 13 years, South Malaysia Industries Bhd's highest Return-on-Tangible-Asset was 13.69%. The lowest was -4.45%. And the median was -1.94%.

XKLS:4375's Return-on-Tangible-Asset is ranked better than
52.36% of 3073 companies
in the Industrial Products industry
Industry Median: 3.26 vs XKLS:4375: 3.59

South Malaysia Industries Bhd  (XKLS:4375) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


South Malaysia Industries Bhd Return-on-Tangible-Asset Related Terms


South Malaysia Industries Bhd Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for South Malaysia Industries Bhd's Return-on-Tangible-Asset 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.

South Malaysia Industries Bhd Return-on-Tangible-Asset Chart

South Malaysia Industries Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Jun24
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.65 -1.96 -0.93 -2.92 -2.57

South Malaysia Industries Bhd Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Asset 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 -5.66 27.65 -14.62 -1.77 3.83

XKLS:4375 vs VRT, BE: Return-on-Tangible-Asset Comparison

For the Electrical Equipment & Parts subindustry, South Malaysia Industries Bhd's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


South Malaysia Industries Bhd Return-on-Tangible-Asset vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, South Malaysia Industries Bhd's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where South Malaysia Industries Bhd's Return-on-Tangible-Asset falls into.


XKLS:4375
36GF Score
South Malaysia Industries Bhd XKLS:4375
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

South Malaysia Industries Bhd Return-on-Tangible-Asset Calculation

South Malaysia Industries Bhd's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jun. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Jun. 2024 )  (A: Dec. 2022 )(A: Jun. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Jun. 2024 )  (A: Dec. 2022 )(A: Jun. 2024 )
=-4.152/( (167.406+155.694)/ 2 )
=-4.152/161.55
=-2.57 %

South Malaysia Industries Bhd's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=6.036/( (157.095+157.771)/ 2 )
=6.036/157.433
=3.83 %

* 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2026) net income data.

What does a Return-on-Tangible-Asset of 3.83% mean?
South Malaysia Industries Bhd (XKLS:4375) has a Return-on-Tangible-Asset of 3.83% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on South Malaysia Industries Bhd and its competitors. According to the industry distribution chart, South Malaysia Industries Bhd ranks #1464 out of 3073 companies in the Industrial Products industry, placing it in the top 47.6%.
Is South Malaysia Industries Bhd's Return-on-Tangible-Asset too high?
South Malaysia Industries Bhd's current Return-on-Tangible-Asset is 3.83%. The Industrial Products industry median Return-on-Tangible-Asset is 3.26. South Malaysia Industries Bhd's value of 3.83% is 17.5% above this industry median. Based on the distribution chart, South Malaysia Industries Bhd ranks #1464 out of 3073 companies in the Industrial Products industry, which is above the industry midpoint. Overall, South Malaysia Industries Bhd has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does South Malaysia Industries Bhd's Return-on-Tangible-Asset compare to VRT and BE?
According to the Industrial Products industry distribution chart, South Malaysia Industries Bhd ranks #1464 out of 3073 companies for Return-on-Tangible-Asset. This puts South Malaysia Industries Bhd in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.26. South Malaysia Industries Bhd's value of 3.83% is 17.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.26, based on 3,073 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Malaysia Industries Bhd's current Return-on-Tangible-Asset of 3.83% is 17.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on South Malaysia Industries Bhd and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Malaysia Industries Bhd's current Return-on-Tangible-Asset is 3.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South Malaysia Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, South Malaysia Industries Bhd (XKLS:4375) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.36, compared to a current price of RM0.20 — trading 44.4% below its estimated fair value. The current Return-on-Tangible-Asset is 3.83% and 17.5% above the Industrial Products industry median of 3.26. South Malaysia Industries Bhd's overall GF Score™ is 36/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For South Malaysia Industries Bhd (XKLS:4375), the current Return-on-Tangible-Asset is 3.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is South Malaysia Industries Bhd (XKLS:4375) Overvalued in 2026?

Based on GuruFocus' analysis, South Malaysia Industries Bhd stock appears to be undervalued. The current stock price of RM0.20 is trading 44.4% below its estimated GF Value™ of RM0.36. GuruFocus considers South Malaysia Industries Bhd to be Possible Value Trap.

Key valuation signals for XKLS:4375:

  • Return-on-Tangible-Asset: 3.83%
  • GF Value™: RM0.36 vs. price of RM0.20 (44.4% below fair value)
  • GF Score™: 36/100 with 3 warning signs
  • Industry Position: 17.5% above the Industrial Products median (#1464 of 3073)

No single metric tells the full story. See the XKLS:4375 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


South Malaysia Industries Bhd Business Description

Address No. 6, Lorong P. Ramlee, 13A Floor, Menara SMI, Wilayah Persekutuan, Kuala Lumpur, SGR, MYS, 50250
South Malaysia Industries Bhd is principally engaged in investment holding, trading, property development and provision of management services. The company's reportable segments are: i) Property development: Develop and sale of residential and commercial properties, ii) Property & investment holding: Investment in properties, carpark operation and holding company, iii) Manufacturing and trading: Manufacture of assorted wires and trading. The majority of the company's revenue is derived from the Manufacturing and trading segment. Geographically, it predominantly operates in Malaysia.
36GF Score

Get the complete analysis for XKLS:4375

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.20
Price
RM0.36
GF Value