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Easou Technology Holdings (HKSE:02550) ROE % : 1.61% (As of Jun. 2024)


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What is Easou Technology Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Easou Technology Holdings's annualized net income for the quarter that ended in Jun. 2024 was HK$7.3 Mil. Easou Technology Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was HK$451.8 Mil. Therefore, Easou Technology Holdings's annualized ROE % for the quarter that ended in Jun. 2024 was 1.61%.

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

HKSE:02550' s ROE % Range Over the Past 10 Years
Min: 7.81   Med: 13.89   Max: 14.31
Current: 9.97

During the past 3 years, Easou Technology Holdings's highest ROE % was 14.31%. The lowest was 7.81%. And the median was 13.89%.

HKSE:02550's ROE % is ranked better than
74.97% of 979 companies
in the Media - Diversified industry
Industry Median: 1.77 vs HKSE:02550: 9.97

Easou Technology Holdings ROE % Historical Data

The historical data trend for Easou Technology 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.

Easou Technology Holdings ROE % Chart

Easou Technology Holdings Annual Data
Trend Dec21 Dec22 Dec23
ROE %
14.31 13.89 7.81

Easou Technology Holdings Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24
ROE % - - -9.83 20.00 1.61

Competitive Comparison of Easou Technology Holdings's ROE %

For the Advertising Agencies subindustry, Easou Technology 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.


Easou Technology Holdings's ROE % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Easou Technology Holdings's ROE % falls into.


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Easou Technology Holdings ROE % Calculation

Easou Technology Holdings'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 )
=27.357/( (285.969+414.221)/ 2 )
=27.357/350.095
=7.81 %

Easou Technology Holdings'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 )
=7.288/( (414.221+489.41)/ 2 )
=7.288/451.8155
=1.61 %

* 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.


Easou Technology Holdings  (HKSE:02550) 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
=7.288/451.8155
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7.288 / 598.212)*(598.212 / 615.9405)*(615.9405 / 451.8155)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.22 %*0.9712*1.3633
=ROA %*Equity Multiplier
=1.18 %*1.3633
=1.61 %

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
=7.288/451.8155
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7.288 / 11.23) * (11.23 / 12.578) * (12.578 / 598.212) * (598.212 / 615.9405) * (615.9405 / 451.8155)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.649 * 0.8928 * 2.1 % * 0.9712 * 1.3633
=1.61 %

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.


Easou Technology Holdings ROE % Related Terms

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


Easou Technology Holdings Business Description

Traded in Other Exchanges
N/A
Address
Keyuan Road, Room 403, Building 5C, Software Industry Base, Nanshan, Shenzhen, CHN
Easou Technology Holdings Ltd operates four business lines covering online reading platform services, digital marketing services, online games publishing services, and other digital content services. In Online reading platform services predict users' preferences, generate recommendation strategies and make adjustments thereto, and intelligently recommend to its users suitable literary content that meets their personalized needs. In Digital marketing services the company collects, analyzes and predicts users' appetite for advertising contents and matches the needs of its advertising customers for advertisement placements with suitable third-party advertising channels.
Executives
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Su Zhou Kun Yu Jin Duo Xin Xing Chan Ye Tou Zi Qi Ye You Xian He Huo 2101 Beneficial owner
Su Zhou Kun Yu Jin Duo Tou Zi Guan Li Zhong Xin You Xian He Huo 2201 Interest of corporation controlled by you
Xu Yong Yi Qi Jin Duo Gu Quan Tou Zi Ji Jin He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Sbcvc Fund Iii Pte. Ltd. 2201 Interest of corporation controlled by you
Star Pioneer Investment Holdings Limited 2201 Interest of corporation controlled by you
Song Lin Ye 2201 Interest of corporation controlled by you
Sbcvc Management Iii, L.p. 2201 Interest of corporation controlled by you
Sbcvc Limited 2201 Interest of corporation controlled by you
Sbcvc Fund Iii, L.p. 2201 Interest of corporation controlled by you
Shen Zhen Shi Yi Jiu Jiu Shang Wu Zi Xun He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Easou Union Ltd 2101 Beneficial owner
Zhou Yuan 2202 Interest of your spouse
Wang Xi 2201 Interest of corporation controlled by you
Growth Value Ltd. 2101 Beneficial owner

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