Does The Market Have A Low Tolerance For Karin Technology Holdings Limited's (SGX:K29) Mixed Fundamentals?

Simply Wall St.

26 Nov 2024

It is hard to get excited after looking at Karin Technology Holdings' (SGX:K29) recent performance, when its stock has declined 9.2% over the past three months. We, however decided to study the ...

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We, however decided to study the ...</p>\n<a href=\"https://finance.yahoo.com/news/does-market-low-tolerance-karin-225045908.html\">Source Link</a>\n</div>\n</body></html>","source":"yahoofinance_sg","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta content=\"text/html; charset=utf-8\" http-equiv=\"Content-Type\"/>\n<meta content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\" name=\"viewport\"/>\n<meta content=\"telephone=no,email=no,address=no\" name=\"format-detection\"/>\n<title>Does The Market Have A Low Tolerance For Karin Technology Holdings Limited's (SGX:K29) Mixed Fundamentals?</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\">\nDoes The Market Have A Low Tolerance For Karin Technology Holdings Limited's (SGX:K29) Mixed Fundamentals?\n</h2>\n<h4 class=\"meta\">\n\n\n2024-11-26 06:50 GMT+8   <a href=\"https://finance.yahoo.com/news/does-market-low-tolerance-karin-225045908.html\"><strong>Simply Wall St.</strong></a>\n</h4>\n</header>\n<article>\n<div>\n<p>It is hard to get excited after looking at Karin Technology Holdings' (SGX:K29) recent performance, when its stock has declined 9.2% over the past three months. We, however decided to study the ...</p>\n<a href=\"https://finance.yahoo.com/news/does-market-low-tolerance-karin-225045908.html\">Source Link</a>\n</div>\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK6515","symbol_name":"技术设备股","start_time":0,"source_url":"https://finance.yahoo.com/news/does-market-low-tolerance-karin-225045908.html","article_id":"2486062833","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/L_KXmPvKIniTbxo1MFyj4Q--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/874442805ef22d0786bb3abf9a3a04ac"],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/does-market-low-tolerance-karin-225045908.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2486062833","pubTimestamp":1732575045,"columns":[],"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"It is hard to get excited after looking at Karin Technology Holdings'  recent performance, when its stock has declined 9.2% over the past three months. We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Stock prices are usually driven by a company’s financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. In this article, we decided to focus on Karin Technology Holdings'  ROE.Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.Check out our latest analysis for Karin Technology Holdings. So, based on the above formula, the ROE for Karin Technology Holdings is:. The basis for attaching value to a company is, to a great extent, tied to its earnings gr","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK6515":"技术设备股","BK6057":"技术产品经销商","K29.SI":"嘉灵控股集团有限公司"},"translate_title":"市场对卡琳科技控股有限公司（新交所：K29）好坏参半的基本面容忍度是否较低？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"K29.SI":0.9},"content_text":"It is hard to get excited after looking at Karin Technology Holdings' (SGX:K29) recent performance, when its stock has declined 9.2% over the past three months. We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Stock prices are usually driven by a company’s financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. In this article, we decided to focus on Karin Technology Holdings'  ROE. \n Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital. \n Check out our latest analysis for Karin Technology Holdings \n How Is ROE Calculated? \n The formula for return on equity is: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Karin Technology Holdings is:\n4.3% = HK$17m ÷ HK$400m (Based on the trailing twelve months to June 2024).\n The 'return' refers to a company's earnings over the last year. That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.04 in profit. \n Why Is ROE Important For Earnings Growth? \n Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. \n A Side By Side comparison of Karin Technology Holdings' Earnings Growth And 4.3% ROE \n At first glance, Karin Technology Holdings' ROE doesn't look very promising. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 10%. However, the moderate 14% net income growth seen by Karin Technology Holdings over the past five years is definitely a positive. So, the growth in the company's earnings could probably have been caused by other variables. 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. \n Next, on comparing with the industry net income growth, we found that Karin Technology Holdings' growth is quite high when compared to the industry average growth of 3.5% in the same period, which is great to see. \n\n\n\n  SGX:K29 Past Earnings Growth November 25th 2024\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Karin Technology Holdings is trading on a high P/E or a low P/E, relative to its industry. \n Is Karin Technology Holdings Efficiently Re-investing Its Profits? \n Karin Technology Holdings has a significant three-year median payout ratio of 95%, meaning that it is left with only 5.2% to reinvest into its business. This implies that the company has been able to achieve decent earnings growth despite returning most of its profits to shareholders. \n Additionally, Karin Technology Holdings has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. \n Conclusion \n Overall, we have mixed feelings about Karin Technology Holdings. While the company has posted impressive earnings growth, its poor ROE and low earnings retention makes us doubtful if that growth could continue, if by any chance the business is faced with any sort of risk. Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals. You can do your own research on Karin Technology Holdings and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows. \nHave 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":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1}}}