Kobay Technology BHD (Klse: Kobay) experienced three months of three months with the price of its action down 7.4%. It seems that the market may have completely ignored the positive aspects of the fundamental principles of the company and has decided to weigh more on negative aspects. The equity prices are generally motivated by the financial performance of a long -term company, and we have therefore decided to pay more attention to the financial performance of the company. In particular, we will pay attention to Kobay Technology BHD's Roe today.
Equity of equity or ROE is a key measure used to assess the effectiveness of the management of a company that uses the capital of the company. In short, Roe shows the profit that each dollar generates with regard to its investments for shareholders.
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THE Formula for eggs East:
Return of equity = net profit (continuous operations) ÷ equity of shareholders
Thus, on the basis of the above formula, the ROE for Kobay Technology BHD is:
4.0% = RM16M ÷ RM404M (based on the twelve months of flight in December 2024).
The “return” is the annual profit. Another way of thinking about this is that for each equity value MyR1, the company was able to win Myr0.04 for profit.
Consult our latest analysis for Kobay Technology BHD
Until now, we have learned that Roe measures how much a company effectively generates its profits. Depending on the share of its profits that the company chooses to reinvest or “keep”, we are then able to assess the future capacity of a company to generate profits. Assuming that everything else is equal, companies that have both equity return and retention of higher profits are generally those that have a higher growth rate compared to companies that do not have the same characteristics.
It is difficult to argue that Kobay Technology BHD eggs are very good in itself. Not only that, even compared to the average of the industry of 6.6%, the company's ROE is entirely commonplace. For this reason, the 5 -year net of Kobay Technology BHD of 5.9% is not surprising given its lower eggs. We believe that there could also be other factors at stake here. For example, the company has a very high payment ratio or is faced with competitive pressures.
Thus, as a next step, we have compared the performance of Kobay Technology BHD against the industry and were disappointed to discover that if the company has decreased its income, the industry has increased its income at a rate of 8.6% in recent years.
