Investors in Hiap Teck Venture Berhad (KLSE:HIAPTEK) have seen notable returns of 94% over the past five years

editorial-team@simplywallst.com (Simply Wall St)

Thu, May 8, 2025, 9:13 PM 3 min read

Hiap Teck Venture Berhad (KLSE:HIAPTEK) shareholders mightiness beryllium acrophobic aft seeing the stock terms driblet 18% successful the past quarter. Looking further back, the banal has generated bully profits implicit 5 years. After all, the stock terms is up a market-beating 77% successful that time. Unfortunately not each shareholders volition person held it for the agelong term, truthful spare a thought for those caught successful the 34% diminution implicit the past 12 months.

Let's instrumentality a look astatine the underlying fundamentals implicit the longer term, and spot if they've been accordant with shareholders returns.

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To paraphrase Benjamin Graham: Over the abbreviated word the marketplace is simply a voting machine, but implicit the agelong word it's a weighing machine. By comparing net per stock (EPS) and stock terms changes implicit time, we tin get a consciousness for however capitalist attitudes to a institution person morphed implicit time.

Over fractional a decade, Hiap Teck Venture Berhad managed to turn its net per stock astatine 65% a year. The EPS maturation is much awesome than the yearly stock terms summation of 12% implicit the aforesaid period. So 1 could reason that the broader marketplace has go much cautious towards the stock. This cautious sentiment is reflected successful its (fairly low) P/E ratio of 3.21.

You tin spot beneath however EPS has changed implicit clip (discover the nonstop values by clicking connected the image).

We cognize that Hiap Teck Venture Berhad has improved its bottommost enactment lately, but is it going to turn revenue? If you're interested, you could cheque this free report showing statement gross forecasts.

When looking astatine concern returns, it is important to see the quality betwixt total shareholder return (TSR) and share terms return. Whereas the stock terms instrumentality lone reflects the alteration successful the stock price, the TSR includes the worth of dividends (assuming they were reinvested) and the payment of immoderate discounted superior raising oregon spin-off. So for companies that wage a generous dividend, the TSR is often a batch higher than the stock terms return. We enactment that for Hiap Teck Venture Berhad the TSR implicit the past 5 years was 94%, which is amended than the stock terms instrumentality mentioned above. The dividends paid by the institution person thusly boosted the total shareholder return.

While the broader marketplace mislaid astir 3.5% successful the 12 months, Hiap Teck Venture Berhad shareholders did adjacent worse, losing 33% (even including dividends). However, it could simply beryllium that the stock terms has been impacted by broader marketplace jitters. It mightiness beryllium worthy keeping an oculus connected the fundamentals, successful lawsuit there's a bully opportunity. Longer word investors wouldn't beryllium truthful upset, since they would person made 14%, each year, implicit 5 years. It could beryllium that the caller sell-off is an opportunity, truthful it whitethorn beryllium worthy checking the cardinal information for signs of a agelong word maturation trend. I find it precise absorbing to look astatine stock terms implicit the agelong word arsenic a proxy for concern performance. But to genuinely summation insight, we request to see different information, too. To that end, you should beryllium alert of the 1 informing motion we've spotted with Hiap Teck Venture Berhad .