Shares of CMOC Group (03993.HK) soared 5.37% on Tuesday, as investors cheered the company's exceptional ability to generate high and rising returns on its deployed capital.
According to the latest analysis, CMOC Group currently boasts an impressive return on capital employed (ROCE) of 21%, far outpacing the industry average of 11%. This strong profitability metric highlights the company's efficiency in allocating and utilizing its capital resources.
Furthermore, CMOC's ROCE has been on a steady upward trajectory over the past five years, suggesting that the company has been consistently identifying and capitalizing on highly profitable reinvestment opportunities. This demonstrated capital compounding skill is a prized trait among growth investors and appears to be a major driving force behind the surge in CMOC's share price.
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