Should You Be Excited About HKT Trust and HKT Limited's (HKG:6823) 15% Return On Equity?

Simply Wall St.11-02

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2480053843?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9022000-choice1-main-header/1585186680387","is_english":true,"pubTime":"2024-11-02 08:58","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2480053843","market":"nz","top_or_hot":-1,"title":"Should You Be Excited About HKT Trust and HKT Limited's (HKG:6823) 15% Return On Equity?","media":"Simply Wall St.","content":"<div>\n<p>Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/telecom/hkg-6823/hkt-trust-and-hkt-shares/news/should-you-be-excited-about-hkt-trust-and-hkt-limiteds-hkg68-1\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should You Be Excited About HKT Trust and HKT Limited's (HKG:6823) 15% Return On Equity?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould You Be Excited About HKT Trust and HKT Limited's (HKG:6823) 15% Return On Equity?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-02 08:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/telecom/hkg-6823/hkt-trust-and-hkt-shares/news/should-you-be-excited-about-hkt-trust-and-hkt-limiteds-hkg68-1><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/telecom/hkg-6823/hkt-trust-and-hkt-shares/news/should-you-be-excited-about-hkt-trust-and-hkt-limiteds-hkg68-1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4215","symbol_name":"住宅房地产投资信托","start_time":0,"source_url":"https://simplywall.st/stocks/hk/telecom/hkg-6823/hkt-trust-and-hkt-shares/news/should-you-be-excited-about-hkt-trust-and-hkt-limiteds-hkg68-1","article_id":"2480053843","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9022000-choice1-main-header/1585186680387"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480053843","pubTimestamp":1730509116,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4215":"住宅房地产投资信托","BK4585":"ETF&股票定投概念","LU0865486749.SGD":"Eastspring Investments - Asian Equity Income AS SGD-H","BK1569":"长和系","LU0315178854.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY INCOME \"A\" ACC","LU2088748293.HKD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"AHD\" (HKD) INC","LU2088748020.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"ADM\" (USD) INC A","ROE":"ASTORIA US QUALITY KINGS ETF","BK1536":"电信股","LU2088747725.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"A\" (USD) ACC","BK4588":"碎股","EQR":"资产住宅公司","LU2088748376.SGD":"Eastspring Investments - Asia Real Estate Multi Asset Income Cl ASDM SGD-H","LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","LU1130305938.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD-H","LU2088747998.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"ADM\" (USD) INC","LU0588545904.SGD":"Eastspring Investments - Asian Equity Income ASDM SGD","06823":"香港电讯—SS","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","BK1133":"综合电信业务","LU0588545490.SGD":"Eastspring Investments - Asian Equity Income AS SGD","LU0264606111.USD":"Janus Henderson Horizon Asian Dividend Income A2 USD","LU0588545730.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY INCOME \"ADM\" (USD) INC","LU0955669360.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD"},"translate_title":"您应该对HKT Trust和HKT Limited(HKG：6823)15%的股本回报率感到兴奋吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ROE":1,"EQR":1,"06823":1},"content_text":"Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the lesson grounded in practicality, we'll use ROE to better understand HKT Trust and HKT Limited (HKG:6823).  ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.  Check out our latest analysis for HKT Trust and HKT  How Do You Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for HKT Trust and HKT is:15% = HK$5.1b ÷ HK$34b (Based on the trailing twelve months to June 2024). The 'return' is the yearly profit.  One way to conceptualize this is that for each HK$1 of shareholders' capital it has, the company made HK$0.15 in profit.   Does HKT Trust and HKT Have A Good ROE?  By comparing a company's ROE with its industry average, we can get a quick measure of how good it is.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   As you can see in the graphic below, HKT Trust and HKT has a higher ROE than the average (6.4%) in the Telecom industry. SEHK:6823 Return on Equity November 2nd 2024 That's what we like to see.     With that said, a high ROE doesn't always indicate high profitability.  A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk .   To know the 2 risks we have identified for HKT Trust and HKT visit our risks dashboard for free.  Why You Should Consider Debt When Looking At ROE  Most companies need money -- from somewhere -- to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first two cases, the ROE will capture this use of capital to grow.  In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity.  In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.  Combining HKT Trust and HKT's Debt And Its 15% Return On Equity  HKT Trust and HKT clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.38.   While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal.   Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.     Conclusion    Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders.  In our books, the highest quality companies have high return on equity, despite low debt.  All else being equal, a higher ROE is better.  But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to take a peek at this data-rich interactive graph of forecasts for the company.  Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this  free list of interesting companies. Valuation is complex, but we're here to simplify it.Discover if HKT Trust and HKT might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480053843"}