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Kato (Hong Kong) Holdings (HKSE:02189) ROE % : 11.73% (As of Sep. 2024)


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What is Kato (Hong Kong) Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kato (Hong Kong) Holdings's annualized net income for the quarter that ended in Sep. 2024 was HK$51.3 Mil. Kato (Hong Kong) Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was HK$437.6 Mil. Therefore, Kato (Hong Kong) Holdings's annualized ROE % for the quarter that ended in Sep. 2024 was 11.73%.

The historical rank and industry rank for Kato (Hong Kong) Holdings's ROE % or its related term are showing as below:

HKSE:02189' s ROE % Range Over the Past 10 Years
Min: 15.91   Med: 43.31   Max: 1368.32
Current: 16.83

During the past 9 years, Kato (Hong Kong) Holdings's highest ROE % was 1,368.32%. The lowest was 15.91%. And the median was 43.31%.

HKSE:02189's ROE % is ranked better than
80.64% of 625 companies
in the Healthcare Providers & Services industry
Industry Median: 4.73 vs HKSE:02189: 16.83

Kato (Hong Kong) Holdings ROE % Historical Data

The historical data trend for Kato (Hong Kong) 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.

Kato (Hong Kong) Holdings ROE % Chart

Kato (Hong Kong) Holdings Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only 43.31 37.56 37.75 37.99 15.91

Kato (Hong Kong) Holdings Semi-Annual Data
Mar16 Mar17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 37.11 39.58 10.72 21.97 11.73

Competitive Comparison of Kato (Hong Kong) Holdings's ROE %

For the Medical Care Facilities subindustry, Kato (Hong Kong) 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.


Kato (Hong Kong) Holdings's ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Kato (Hong Kong) Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Kato (Hong Kong) Holdings's ROE % falls into.


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Kato (Hong Kong) Holdings ROE % Calculation

Kato (Hong Kong) Holdings's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=64.185/( (372.629+434.293)/ 2 )
=64.185/403.461
=15.91 %

Kato (Hong Kong) Holdings's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=51.328/( (434.293+440.894)/ 2 )
=51.328/437.5935
=11.73 %

* 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 (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Kato (Hong Kong) Holdings  (HKSE:02189) 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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=51.328/437.5935
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(51.328 / 295.942)*(295.942 / 851.149)*(851.149 / 437.5935)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.34 %*0.3477*1.9451
=ROA %*Equity Multiplier
=6.03 %*1.9451
=11.73 %

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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=51.328/437.5935
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (51.328 / 60.514) * (60.514 / 75.648) * (75.648 / 295.942) * (295.942 / 851.149) * (851.149 / 437.5935)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8482 * 0.7999 * 25.56 % * 0.3477 * 1.9451
=11.73 %

Note: The net income data used here is two times the semi-annual (Sep. 2024) net income data. The Revenue data used here is two times the semi-annual (Sep. 2024) 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.


Kato (Hong Kong) Holdings ROE % Related Terms

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Kato (Hong Kong) Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Tsing Ling Path, 1st Floor, Tung Wai Court, Tuen Mun, New Territories, Hong Kong, HKG
Kato (Hong Kong) Holdings Ltd is an established operator of residential care homes and daycare services for the elderly in Hong Kong. The company offers a wide range of residential care services for the elderly including; the provision of accommodation, professional nursing and care-taking services, nutritional management, medical services, physiotherapy and occupational therapy services, individual care plans and recreational services; and the sale of healthcare and medical goods and the provision of add-on healthcare services to residents.
Executives
Wei Xiaoling 2202 Interest of your spouse
Ngai Shi Shing Godfrey 2101 Beneficial owner
Wei Xiaoling 2202 Interest of your spouse
Lam Kong 2101 Beneficial owner
Kwong Kai To 2202 Interest of your spouse
Ngai Ka Yee 2101 Beneficial owner
Sheung Fung Limited 2101 Beneficial owner
Shi Fung (ptc) Limited 2301 Trustee

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