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Swang Chai Chuan (HKSE:02321) ROE % : 12.03% (As of Jun. 2024)


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What is Swang Chai Chuan ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Swang Chai Chuan's annualized net income for the quarter that ended in Jun. 2024 was HK$47 Mil. Swang Chai Chuan's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was HK$394 Mil. Therefore, Swang Chai Chuan's annualized ROE % for the quarter that ended in Jun. 2024 was 12.03%.

The historical rank and industry rank for Swang Chai Chuan's ROE % or its related term are showing as below:

HKSE:02321' s ROE % Range Over the Past 10 Years
Min: 10.82   Med: 19.62   Max: 23.64
Current: 10.82

During the past 5 years, Swang Chai Chuan's highest ROE % was 23.64%. The lowest was 10.82%. And the median was 19.62%.

HKSE:02321's ROE % is ranked better than
50% of 304 companies
in the Retail - Defensive industry
Industry Median: 10.815 vs HKSE:02321: 10.82

Swang Chai Chuan ROE % Historical Data

The historical data trend for Swang Chai Chuan'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.

Swang Chai Chuan ROE % Chart

Swang Chai Chuan Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
19.62 21.46 23.64 16.31 12.00

Swang Chai Chuan Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only 26.62 12.68 15.03 9.59 12.03

Competitive Comparison of Swang Chai Chuan's ROE %

For the Grocery Stores subindustry, Swang Chai Chuan'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.


Swang Chai Chuan's ROE % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Swang Chai Chuan's ROE % distribution charts can be found below:

* The bar in red indicates where Swang Chai Chuan's ROE % falls into.


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Swang Chai Chuan ROE % Calculation

Swang Chai Chuan's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=45.464/( (375.943+381.478)/ 2 )
=45.464/378.7105
=12.00 %

Swang Chai Chuan's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=47.372/( (381.478+406.254)/ 2 )
=47.372/393.866
=12.03 %

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


Swang Chai Chuan  (HKSE:02321) 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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=47.372/393.866
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(47.372 / 1564.676)*(1564.676 / 598.421)*(598.421 / 393.866)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.03 %*2.6147*1.5194
=ROA %*Equity Multiplier
=7.92 %*1.5194
=12.03 %

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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=47.372/393.866
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (47.372 / 61.89) * (61.89 / 60.988) * (60.988 / 1564.676) * (1564.676 / 598.421) * (598.421 / 393.866)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7654 * 1.0148 * 3.9 % * 2.6147 * 1.5194
=12.03 %

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


Swang Chai Chuan ROE % Related Terms

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Swang Chai Chuan Business Description

Traded in Other Exchanges
N/A
Address
Kawasan Perindustrian Semambu, Lot 147-A, Kuantan, PHG, MYS, 25350
Swang Chai Chuan Ltd is a distributor of Food and Beverages and other products for recognized international and domestic third-party brands and own brands in Malaysia. The company has one reportable segment which is the whole the business of distribution and sales of F&B and provision of logistics services, and warehousing services. It manages its business as a whole as the businesses of distribution and sales of F&B and provision of logistics, warehousing services, and others are carried out in Malaysia.
Executives
Tee Kian Heng 2101 Beneficial owner
Lim Tau Hong 2202 Interest of your spouse
Ng Kar Wei 2202 Interest of your spouse
Ng Mee Lam 2202 Interest of your spouse
Soon Chiew Ang 2201 Interest of corporation controlled by you
Soon Holdings Limited 2101 Beneficial owner
Soon Lee Shiang 2201 Interest of corporation controlled by you
Soon See Beng 2201 Interest of corporation controlled by you
Soon See Long 2201 Interest of corporation controlled by you
Yang Lixia 2202 Interest of your spouse

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