Hai Leck Holdings (SGX:BLH) has been making waves in the market with its impressive Return on Capital Employed (ROCE) growth. With a ROCE of 5.3%, the company is showing promising signs of reinvesting profits at increasing rates of return.
ROCE is a key metric that measures a company’s yearly pre-tax profit relative to the capital employed in the business. Hai Leck Holdings’ ROCE growth of 201% over the last five years is a clear indicator of its ability to generate returns efficiently.
While the stock has only returned 25% to shareholders over the last five years, the strong fundamentals of Hai Leck Holdings may not have been fully recognized by investors yet. With capital employed remaining relatively flat while earnings are on the rise, the company is poised for further growth.
Investors looking for a multi-bagger opportunity should keep an eye on Hai Leck Holdings as it continues to demonstrate its ability to generate returns on capital employed. With a promising ROCE trend and potential for future growth, the stock deserves further research.
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