Shares of Mobvista Inc. (01860) surged 13.84% on Wednesday, as investors reacted positively to the company's impressive earnings growth and its strategy of reinvesting profits back into the business.
According to the news report, Mobvista has demonstrated a modest 12% net income growth over the past five years, outperforming the industry average of 6.2%. This growth is attributed to the company's efficient management and its decision to reinvest all of its profits into the business instead of paying dividends.
While Mobvista's return on equity (ROE) of 10% is not particularly high, it is in line with the industry average of 9.1%. Analysts believe that the company's earnings growth potential and reinvestment strategy have not been fully priced into the stock, fueling the surge in share price.
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