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Huashi Group Holdings (HKSE:01111) ROE % : 62.01% (As of Dec. 2022)


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What is Huashi Group Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Huashi Group Holdings's annualized net income for the quarter that ended in Dec. 2022 was HK$51.0 Mil. Huashi Group Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2022 was HK$82.2 Mil. Therefore, Huashi Group Holdings's annualized ROE % for the quarter that ended in Dec. 2022 was 62.01%.

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

HKSE:01111' s ROE % Range Over the Past 10 Years
Min: 36.23   Med: 47.81   Max: 62.01
Current: 36.23

During the past 4 years, Huashi Group Holdings's highest ROE % was 62.01%. The lowest was 36.23%. And the median was 47.81%.

HKSE:01111's ROE % is ranked better than
93.66% of 978 companies
in the Media - Diversified industry
Industry Median: 2.565 vs HKSE:01111: 36.23

Huashi Group Holdings ROE % Historical Data

The historical data trend for Huashi Group 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.

Huashi Group Holdings ROE % Chart

Huashi Group Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROE %
47.81 37.88 62.01 36.23

Huashi Group Holdings Semi-Annual Data
Dec20 Dec21 Dec22 Dec23
ROE % 47.81 37.88 62.01 36.23

Competitive Comparison of Huashi Group Holdings's ROE %

For the Advertising Agencies subindustry, Huashi Group 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.


Huashi Group Holdings's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Huashi Group Holdings's ROE % distribution charts can be found below:

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



Huashi Group Holdings ROE % Calculation

Huashi Group Holdings's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=50.988/( (59.349+105.114)/ 2 )
=50.988/82.2315
=62.01 %

Huashi Group Holdings's annualized ROE % for the quarter that ended in Dec. 2022 is calculated as

ROE %=Net Income (Q: Dec. 2022 )/( (Total Stockholders Equity (Q: Dec. 2021 )+Total Stockholders Equity (Q: Dec. 2022 ))/ count )
=50.988/( (59.349+105.114)/ 2 )
=50.988/82.2315
=62.01 %

* 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 one times the annual (Dec. 2022) net income data. ROE % is displayed in the 30-year financial page.


Huashi Group Holdings  (HKSE:01111) 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: Dec. 2022 )
=Net Income/Total Stockholders Equity
=50.988/82.2315
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(50.988 / 231.346)*(231.346 / 145.748)*(145.748 / 82.2315)
=Net Margin %*Asset Turnover*Equity Multiplier
=22.04 %*1.5873*1.7724
=ROA %*Equity Multiplier
=34.98 %*1.7724
=62.01 %

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: Dec. 2022 )
=Net Income/Total Stockholders Equity
=50.988/82.2315
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (50.988 / 62.101) * (62.101 / 63.282) * (63.282 / 231.346) * (231.346 / 145.748) * (145.748 / 82.2315)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.821 * 0.9813 * 27.35 % * 1.5873 * 1.7724
=62.01 %

Note: The net income data used here is one times the annual (Dec. 2022) net income data. The Revenue data used here is one times the annual (Dec. 2022) 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.


Huashi Group Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Huashi Group Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Huashi Group Holdings (HKSE:01111) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Phase II Shuisheng Keji Yuan, 1st Floor, Block 2 Office Building, 1 Chagang Xincun Dongyuan, Wuchang, Wuhan, CHN
Huashi Group Holdings Ltd is a branding, advertising and marketing service provider based in Hubei Province, the PRC, providing services across the entire value chain from market research through collaboration with research institutes to execution of branding, advertising and marketing projects through collaboration with different media resources suppliers so as to assist brand owners, advertisers and advertising agents in formulating and implementing effective service proposals to fulfill their promotional needs and marketing objectives, thereby further enhancing their brand reputation to targeted recipients, and improving the competitiveness and market share of their products or services.
Executives
Chen Jicheng 2201 Interest of corporation controlled by you
Wang Shujin 2201 Interest of corporation controlled by you
Nie Xing 2201 Interest of corporation controlled by you
Jia Yi Wen Hua Chuan Mei You Xian Gong Si 2101 Beneficial owner
Yuan Jin Wen Hua Chuan Mei You Xian Gong Si 2101 Beneficial owner
You Xin Zi Ben You Xian Gong Si 2101 Beneficial owner

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