New Concepts Holdings (HKSE:02221) ROC % : -3.46% (As of Sep. 2024)

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What is New Concepts 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 %. New Concepts Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -3.46%.

As of today (2025-04-04), New Concepts Holdings's WACC % is 7.91%. New Concepts Holdings's ROC % is -4.93% (calculated using TTM income statement data). New Concepts Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

New Concepts Holdings ROC % Historical Data

The historical data trend for New Concepts 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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New Concepts Holdings ROC % Chart

New Concepts Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-5.51

-7.38

-0.89

-7.27

-3.59

New Concepts 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															-13.09	-3.20	-1.58	-5.67	-3.46

New Concepts Holdings ROC % Calculation

New Concepts 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 )
=	-28.424 * ( 1 - -0.87% )	/	( (734.62	+	861.392)	/ 2 )
=	-28.6712888	/	798.006
=	-3.59 %

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	))
=	1032.996	-	204.689	-	( 134.54	-	max(0, 280.21	-	373.897	+	134.54	))
=	734.62

	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	))
=	1104.069	-	228.67	-	( 37.321	-	max(0, 337.384	-	351.391	+	37.321	))
=	861.392

New Concepts 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 )
=	-31.33 * ( 1 - 4.77% )	/	( (861.392	+	861.91)	/ 2 )
=	-29.835559	/	861.651
=	-3.46 %

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	))
=	1104.069	-	228.67	-	( 37.321	-	max(0, 337.384	-	351.391	+	37.321	))
=	861.392

	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	))
=	1201.07	-	333.604	-	( 53.386	-	max(0, 409.178	-	414.734	+	53.386	))
=	861.91

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

New Concepts Holdings (HKSE:02221) 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, New Concepts Holdings's WACC % is 7.91%. New Concepts Holdings's ROC % is -4.93% (calculated using TTM income statement data). New Concepts 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.

New Concepts Holdings ROC % Related Terms

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New Concepts Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » New Concepts Holdings Ltd (HKSE:02221) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

19 Wang Chiu Road, Kingston International Centre, Office B, 3rd Floor, Kowloon Bay, Hong Kong, HKG

Website

http://www.primeworld-china.com

New Concepts Holdings Ltd is an investment holding company, which majorly focuses on foundation works, civil engineering, and general building services, and environmental protection projects, including kitchen waste treatment, environmental park development, and new energy materials in Mainland China. The company's operating segment includes Construction works and Environmental protection services. It generates maximum revenue from the Construction works segment. The Construction work segment is engaged in the provision of foundation works, civil engineering works, and general building works in Hong Kong. Geographically, it derives a majority of its revenue from Hong Kong and also has a presence in Mainland China.

Executives

Lin Jiakuang
Yuan Heng Qi Ye Guan Li Shen Zhen Ji Tuan You Xian Gong Si
Zhu Yongjun
Yuan Heng Group International Co., Limited
Final Destination Limited	2201 Interest of corporation controlled by you
Ding Yi Feng Holdings Group International Limited	2201 Interest of corporation controlled by you
Hong Kong Toprich Investment Limited	2101 Beneficial owner
Flying Goddess Limited	2201 Interest of corporation controlled by you
Eternity Sky Limited	2201 Interest of corporation controlled by you
Prosper Power Group Limited
Chu Shu Cheong
Jumbo Grand Enterprise Development Limited
China Investment Fund Company Limited	2201 Interest of corporation controlled by you
Flying Goddess Limited	2201 Interest of corporation controlled by you
Hong Kong Toprich Investment Limited	2101 Beneficial owner

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