HPP Holdings Bhd (XKLS:0228) ROE %: 1.55% (As of Feb. 2026) — 83% Below Median


XKLS:0228 HPP Holdings Bhd XKLS:0228
54 GF Score
Price RM0.29
GF Value RM0.42
Valuation Possible Value Trap
! 3 Warning Signs
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What is HPP Holdings Bhd ROE %?

HPP Holdings Bhd XKLS:0228 -1.72% 54 ROE % is 1.55% as of Feb. 2026, which is 83% below its 10-year median of 9.12. GuruFocus rates XKLS:0228 with a GF Score™ of 54/100 and a GF Value™ of RM0.42 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 390 Packaging & Containers companies, HPP Holdings Bhd ranks worse than 57.44% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. HPP Holdings Bhd's annualized net income for the quarter that ended in Feb. 2026 was RM1.95 Mil. HPP Holdings Bhd's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was RM125.29 Mil. Therefore, HPP Holdings Bhd's annualized ROE % for the quarter that ended in Feb. 2026 was 1.55%.

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

XKLS:0228' s ROE % Range Over the Past 10 Years
Min: 1.79   Med: 9.12   Max: 28.82
Current: 4.26

During the past 8 years, HPP Holdings Bhd's highest ROE % was 28.82%. The lowest was 1.79%. And the median was 9.12%.

XKLS:0228's ROE % is ranked worse than
57.44% of 390 companies
in the Packaging & Containers industry
Industry Median: 5.375 vs XKLS:0228: 4.26

HPP Holdings Bhd  (XKLS:0228) 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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=1.948/125.2905
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1.948 / 62.388)*(62.388 / 158.6665)*(158.6665 / 125.2905)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.12 %*0.3932*1.2664
=ROA %*Equity Multiplier
=1.23 %*1.2664
=1.55 %

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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=1.948/125.2905
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1.948 / 3.06) * (3.06 / 4.072) * (4.072 / 62.388) * (62.388 / 158.6665) * (158.6665 / 125.2905)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6366 * 0.7515 * 6.53 % * 0.3932 * 1.2664
=1.55 %

Note: The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) 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.


HPP Holdings Bhd ROE % Related Terms


HPP Holdings Bhd ROE % Historical Data

* Premium members only.

The historical data trend for HPP Holdings Bhd'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.

HPP Holdings Bhd ROE % Chart

HPP Holdings Bhd Annual Data
Trend May18 May19 May20 May21 May22 May23 May24 May25
ROE %
Get a 7-Day Free Trial 16.01 7.45 7.85 3.34 1.79

HPP Holdings Bhd Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.73 4.50 5.42 5.58 1.55

XKLS:0228 vs SW, PKG, IP: ROE % Comparison

For the Packaging & Containers subindustry, HPP Holdings Bhd'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.


HPP Holdings Bhd ROE % vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, HPP Holdings Bhd's ROE % distribution charts can be found below:

* The bar in red indicates where HPP Holdings Bhd's ROE % falls into.


XKLS:0228
54GF Score
HPP Holdings Bhd XKLS:0228
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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HPP Holdings Bhd ROE % Calculation

HPP Holdings Bhd's annualized ROE % for the fiscal year that ended in May. 2025 is calculated as

ROE %=Net Income (A: May. 2025 )/( (Total Stockholders Equity (A: May. 2024 )+Total Stockholders Equity (A: May. 2025 ))/ count )
=2.199/( (122.027+123.364)/ 2 )
=2.199/122.6955
=1.79 %

HPP Holdings Bhd's annualized ROE % for the quarter that ended in Feb. 2026 is calculated as

ROE %=Net Income (Q: Feb. 2026 )/( (Total Stockholders Equity (Q: Nov. 2025 )+Total Stockholders Equity (Q: Feb. 2026 ))/ count )
=1.948/( (125.047+125.534)/ 2 )
=1.948/125.2905
=1.55 %

* 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 four times the quarterly (Feb. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 1.55% mean?
HPP Holdings Bhd (XKLS:0228) has a ROE % of 1.55% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HPP Holdings Bhd and its competitors. This is 83% below median its historical median of 9.12. Over the past decade, HPP Holdings Bhd's ROE % has ranged from 1.79 to 28.82. According to the industry distribution chart, HPP Holdings Bhd ranks #224 out of 390 companies in the Packaging & Containers industry, placing it in the top 57.4%.
Is HPP Holdings Bhd's ROE % too high?
HPP Holdings Bhd's current ROE % of 1.55% is 83% below median its 10-year median of 9.12. Over the past 10 years, this metric has ranged from a low of 1.79 to a high of 28.82. The Packaging & Containers industry median ROE % is 5.38. HPP Holdings Bhd's value of 1.55% is 71.2% below this industry median. Based on the distribution chart, HPP Holdings Bhd ranks #224 out of 390 companies in the Packaging & Containers industry, which is below the industry midpoint. Overall, HPP Holdings Bhd has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HPP Holdings Bhd's ROE % compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, HPP Holdings Bhd ranks #224 out of 390 companies for ROE %. This places HPP Holdings Bhd in the lower half of its industry. The industry median ROE % is 5.38. HPP Holdings Bhd's value of 1.55% is 71.2% below this benchmark. Historically, HPP Holdings Bhd's own ROE % has ranged from 1.79 to 28.82 over the past decade. While the company's 10-year median is 9.12 vs. the industry median of 5.38, HPP Holdings Bhd has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Packaging & Containers company?
The median ROE % among Packaging & Containers companies is 5.38, based on 390 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HPP Holdings Bhd's current ROE % of 1.55% is 71.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HPP Holdings Bhd and its competitors. For the Packaging & Containers industry, the median ROE % is 5.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HPP Holdings Bhd's current ROE % is 1.55%, which is 83% below median its own 10-year median of 9.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HPP Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, HPP Holdings Bhd (XKLS:0228) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.42, compared to a current price of RM0.29 — trading 32.1% below its estimated fair value. The current ROE % is 1.55%, which is 83% below median its 10-year median of 9.12 and 71.2% below the Packaging & Containers industry median of 5.38. HPP Holdings Bhd's overall GF Score™ is 54/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For HPP Holdings Bhd (XKLS:0228), the current ROE % is 1.55% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is HPP Holdings Bhd (XKLS:0228) Overvalued in 2026?

Based on GuruFocus' analysis, HPP Holdings Bhd stock appears to be undervalued. The current stock price of RM0.29 is trading 32.1% below its estimated GF Value™ of RM0.42. GuruFocus considers HPP Holdings Bhd to be Possible Value Trap.

Key valuation signals for XKLS:0228:

  • ROE %: 1.55% (83% below median its 10-year median of 9.12)
  • GF Value™: RM0.42 vs. price of RM0.29 (32.1% below fair value)
  • GF Score™: 54/100 with 3 warning signs
  • Industry Position: 71.2% below the Packaging & Containers median (#224 of 390)

No single metric tells the full story. See the XKLS:0228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


HPP Holdings Bhd Business Description

Address No. 37, Jalan TTC 29, Taman Teknologi Cheng, Melaka, MLA, MYS, 75250
HPP Holdings Bhd is an investment holding company principally engaged in printing, production, sales, and marketing of paper-based packaging. Its product range includes corrugated and non-corrugated packaging, paper pulp molded packaging, rigid boxes, as well as brochures, leaflets, labels, and paper bags. The company operates in multiple countries, including Malaysia, Thailand, the United States, Singapore, and Taiwan. It serves markets such as consumer electronics, pharmaceuticals, food and beverage, and household products. HPP generates revenue prominently through the sale and provision of packaging solutions.
54GF Score

Get the complete analysis for XKLS:0228

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.29
Price
RM0.42
GF Value