Grand Ming Group Holdings (HKSE:01271) ROC % : 1.46% (As of Sep. 2024)

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What is Grand Ming Group Holdings ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Grand Ming Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 1.46%.

As of today (2025-03-04), Grand Ming Group Holdings's WACC % is 3.38%. Grand Ming Group Holdings's ROC % is 0.79% (calculated using TTM income statement data). Grand Ming Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Grand Ming Group Holdings ROC % Historical Data

The historical data trend for Grand Ming Group Holdings's ROC % 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.

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Grand Ming Group Holdings ROC % Chart

Grand Ming Group Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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1.11

1.91

-0.15

13.13

0.53

Grand Ming Group Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															28.46	-2.15	1.30	-0.14	1.46

Grand Ming Group Holdings ROC % Calculation

Grand Ming Group Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	45.512 * ( 1 - 4.69% )	/	( (7470.35	+	8889.971)	/ 2 )
=	43.3774872	/	8180.1605
=	0.53 %

where

	Invested Capital		(A: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8150.242	-	454.458	-	( 225.434	-	max(0, 1235.679	-	2622.06	+	225.434	))
=	7470.35

	Invested Capital		(A: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9386.245	-	433.712	-	( 62.562	-	max(0, 2123.872	-	2505.742	+	62.562	))
=	8889.971

Grand Ming Group Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	169.73 * ( 1 - 22.35% )	/	( (8889.971	+	9191.679)	/ 2 )
=	131.795345	/	9040.825
=	1.46 %

where

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9386.245	-	433.712	-	( 62.562	-	max(0, 2123.872	-	2505.742	+	62.562	))
=	8889.971

	Invested Capital		(Q: Sep. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9527.504	-	288.776	-	( 47.049	-	max(0, 1626.024	-	2345.466	+	47.049	))
=	9191.679

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data.

Grand Ming Group Holdings (HKSE:01271) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Grand Ming Group Holdings's WACC % is 3.38%. Grand Ming Group Holdings's ROC % is 0.79% (calculated using TTM income statement data). Grand Ming Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.

Grand Ming Group Holdings ROC % Related Terms

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Grand Ming Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Grand Ming Group Holdings Ltd (HKSE:01271) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 39 Chatham Road South, 22nd Floor, Railway Plaza, Tsim Sha Tsui, Kowloon, Hong Kong, HKG

Website

https://www.grandming.com.hk

Grand Ming Group Holdings Ltd is an investment holding company. Through its subsidiaries, the company is principally engaged in building construction, property leasing, and property development. Its reportable segments are; Construction, which involves constructing residential buildings, commercial buildings, and data centres; Property leasing which engages in the leasing of data centres and commercial shops; and the Property development segment which is involved in the development and sale of properties. Maximum revenue is generated from the Construction segment. Geographically, all of the company's revenue is generated from its customers in Hong Kong.

Executives

Lau Cw Company Limited	2101 Beneficial owner
Lau Chi Wah	2101 Beneficial owner
Cheung Shuk Fong	2202 Interest of your spouse
Xu Chujia	2201 Interest of corporation controlled by you
Banco Well Link, S.a.	2106 Person having a security interest in shares
Well Link Holdings Limited	2201 Interest of corporation controlled by you
Chan Hm Company Limited	2101 Beneficial owner
Chan Hung Ming	2201 Interest of corporation controlled by you

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