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Powerwin Tech Group (HKSE:02405) ROE % : 2.28% (As of Jun. 2024)


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What is Powerwin Tech Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Powerwin Tech Group's annualized net income for the quarter that ended in Jun. 2024 was HK$5.3 Mil. Powerwin Tech Group's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was HK$232.0 Mil. Therefore, Powerwin Tech Group's annualized ROE % for the quarter that ended in Jun. 2024 was 2.28%.

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

HKSE:02405' s ROE % Range Over the Past 10 Years
Min: 1.82   Med: 73.32   Max: 166.91
Current: 1.82

During the past 6 years, Powerwin Tech Group's highest ROE % was 166.91%. The lowest was 1.82%. And the median was 73.32%.

HKSE:02405's ROE % is ranked better than
50.05% of 969 companies
in the Media - Diversified industry
Industry Median: 1.82 vs HKSE:02405: 1.82

Powerwin Tech Group ROE % Historical Data

The historical data trend for Powerwin Tech Group'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.

Powerwin Tech Group ROE % Chart

Powerwin Tech Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROE %
Get a 7-Day Free Trial 98.16 66.11 73.32 40.13 1.82

Powerwin Tech Group Semi-Annual Data
Dec19 Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
ROE % Get a 7-Day Free Trial Premium Member Only 127.01 26.51 38.33 2.28 1.37

Competitive Comparison of Powerwin Tech Group's ROE %

For the Advertising Agencies subindustry, Powerwin Tech Group'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.


Powerwin Tech Group's ROE % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Powerwin Tech Group's ROE % falls into.


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Powerwin Tech Group ROE % Calculation

Powerwin Tech Group'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 )
=56.113/( (49.149+230.53)/ 2 )
=56.113/139.8395
=40.13 %

Powerwin Tech Group'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 )
=5.28/( (230.53+233.371)/ 2 )
=5.28/231.9505
=2.28 %

* 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.


Powerwin Tech Group  (HKSE:02405) 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
=5.28/231.9505
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5.28 / 115.088)*(115.088 / 1897.0305)*(1897.0305 / 231.9505)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.59 %*0.0607*8.1786
=ROA %*Equity Multiplier
=0.28 %*8.1786
=2.28 %

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
=5.28/231.9505
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (5.28 / 4.64) * (4.64 / 40.518) * (40.518 / 115.088) * (115.088 / 1897.0305) * (1897.0305 / 231.9505)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1379 * 0.1145 * 35.21 % * 0.0607 * 8.1786
=2.28 %

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.


Powerwin Tech Group ROE % Related Terms

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


Powerwin Tech Group Business Description

Traded in Other Exchanges
N/A
Address
Zhubang 2000 Business Center, Block B, Building 1, Chaoyang District, Beijing, CHN
Powerwin Tech Group Ltd is a cross-border digital marketing service provider in China. It covers mainstream media platforms such as Facebook, Instagram, Messenger, Google, Twitter, TikTok, YouTube, Snapchat, and Pinterest, providing customers with diversified and full-link cross-border digital marketing services and online shop SaaS solutions. Geographically the company generates revenue from Hong Kong and the Chinese mainland, where the majority of revenue is generated from Hong Kong. The company provides Standardized, Customized, and SaaS-based digital marketing services.
Executives
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Li Xiang
Yu Lu
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