Latest news with #SFPTech
Yahoo
a day ago
- Business
- Yahoo
Are SFP Tech Holdings Berhad's (KLSE:SFPTECH) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
With its stock down 17% over the past three months, it is easy to disregard SFP Tech Holdings Berhad (KLSE:SFPTECH). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. In this article, we decided to focus on SFP Tech Holdings Berhad's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for SFP Tech Holdings Berhad is: 4.4% = RM9.9m ÷ RM225m (Based on the trailing twelve months to March 2025). The 'return' is the amount earned after tax over the last twelve months. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.04 in profit. Check out our latest analysis for SFP Tech Holdings Berhad We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. As you can see, SFP Tech Holdings Berhad's ROE looks pretty weak. Even compared to the average industry ROE of 6.1%, the company's ROE is quite dismal. Although, we can see that SFP Tech Holdings Berhad saw a modest net income growth of 6.0% over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Next, on comparing SFP Tech Holdings Berhad's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 5.3% over the last few years. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about SFP Tech Holdings Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. While the company did pay out a portion of its dividend in the past, it currently doesn't pay a regular dividend. We infer that the company has been reinvesting all of its profits to grow its business. On the whole, we do feel that SFP Tech Holdings Berhad has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
BusinessToday
06-05-2025
- Business
- BusinessToday
Bursa Opens Higher As FBMKLCI Rises 4.26 Points To 1,546.75
Bursa Malaysia opened on a positive note Monday, with key indices trending higher amid upbeat market sentiment and broad-based buying interest across sectors. The FBM KLCI gained 4.26 points or 0.28% to reach 1,546.75 at 9:08 am, lifted by gains in selected heavyweights. The benchmark index traded between 1,541.78 and 1,546.75 in the early session. Broader market performance was also positive: The FBM 70 rose 97.33 points to 16,371.87 (+0.60%), rose to (+0.60%), The FBM Emas advanced 42.59 points to 11,531.97 (+0.37%), advanced to (+0.37%), The FBM Shariah Index climbed 39.63 points to 11,429.98 (+0.35%), climbed to (+0.35%), The FTSE4Good Bursa Malaysia Index (F4GBM) added 3.15 points to 928.93 (+0.34%). Among the most actively traded counters, West River topped the volume list on its ACE Market debut with 216.97 million shares done at an unchanged price of 39 sen. Other actives included SFP Tech, which rose 1 sen to 23 sen, and NATGATE, which added 4 sen to RM1.56. Gainers outpaced losers as investor sentiment remained supported by regional cues and expectations of continued foreign interest. Related
New Straits Times
30-04-2025
- Business
- New Straits Times
SFP Tech revises FY24 net profit upward by 24pct post-audit
KUALA LUMPUR: SFP Tech Holdings Bhd has revised its net profit for the financial year ended Dec 31, 2024 upward by 24 per cent in its audited accounts, a deviation of more than 10 per cent from figures reported in its earlier unaudited results. In a filing with Bursa Malaysia, the company said its audited net profit stood at RM11.98 million, versus RM9.68 million reported in its unaudited fourth-quarter results released in February. This prompted the company to issue a formal explanation in compliance with Bursa Malaysia's ACE Market listing requirements. SFP Tech attributed the upward revision primarily to a higher gross profit, which was driven by lower cost of goods sold due to the absorption of inventory-related labour and overhead costs. In addition, the company recorded a lower tax expense due to the reversal of previously overprovided deferred tax liabilities. These gains were partially offset by a reduction in other income and higher administrative expenses, the company said. "The board is of the opinion that the adjustments be made accordingly to give a true and fair view of the financial position of the company," it added. The company's profit before tax was revised from RM21.3 million to RM22.7 million, while tax expenses were adjusted downward from RM11.62 million to RM10.72 million.
