Are Star Plus Legend Holdings Limited's (HKG:6683) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?

Simply Wall St.

Oct 18

With its stock down 22% over the past three months, it is easy to disregard Star Plus Legend Holdings (HKG:6683). We, however decided to study the company's financials to determine if they have got ...

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We, however decided to study the company's financials to determine if they have got ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/food-beverage-tobacco/hkg-6683/star-plus-legend-holdings-shares/news/are-star-plus-legend-holdings-limiteds-hkg6683-mixed-financi\">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>Are Star Plus Legend Holdings Limited's (HKG:6683) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?</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\">\nAre Star Plus Legend Holdings Limited's (HKG:6683) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-18 08:20 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/food-beverage-tobacco/hkg-6683/star-plus-legend-holdings-shares/news/are-star-plus-legend-holdings-limiteds-hkg6683-mixed-financi><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>With its stock down 22% over the past three months, it is easy to disregard Star Plus Legend Holdings (HKG:6683).   We, however decided to study the company's financials to determine if they have got ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/food-beverage-tobacco/hkg-6683/star-plus-legend-holdings-shares/news/are-star-plus-legend-holdings-limiteds-hkg6683-mixed-financi\">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":"BK1237","symbol_name":"包装食品与肉类","start_time":0,"source_url":"https://simplywall.st/stocks/hk/food-beverage-tobacco/hkg-6683/star-plus-legend-holdings-shares/news/are-star-plus-legend-holdings-limiteds-hkg6683-mixed-financi","article_id":"2576096495","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/5122000-choice2-main-header/1585186547117"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/food-beverage-tobacco/hkg-6683/star-plus-legend-holdings-shares/news/are-star-plus-legend-holdings-limiteds-hkg6683-mixed-financi","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2576096495","pubTimestamp":1760746853,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"With its stock down 22% over the past three months, it is easy to disregard Star Plus Legend Holdings (HKG:6683). We...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1237":"包装食品与肉类","06683":"巨星传奇"},"translate_title":"星加联想控股有限公司（HKG：6683）的混合财务状况是其股市表现低迷的原因吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"06683":1.5},"content_text":"With its stock down 22% over the past three months, it is easy to disregard Star Plus Legend Holdings (HKG:6683).   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.     Specifically, we decided to study Star Plus Legend Holdings'  ROE in this article.    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.  In short, ROE shows the profit each dollar generates with respect to its shareholder investments. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.Advertisement How Is ROE Calculated?  ROE can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Star Plus Legend Holdings is:3.3% = CN¥33m ÷ CN¥998m (Based on the trailing twelve months to June 2025). The 'return' refers to a company's earnings over the last year.  Another way to think of that is that for every HK$1 worth of equity, the company was able to earn HK$0.03 in profit.  See our latest analysis for Star Plus Legend Holdings   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential.  Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.  Star Plus Legend Holdings' Earnings Growth And 3.3% ROE   It is quite clear that Star Plus Legend Holdings' ROE is rather low.   Not just that, even compared to the industry average of 9.6%, the company's ROE is entirely unremarkable.   For this reason, Star Plus Legend Holdings' five year net income decline of 9.8% is not surprising given its lower ROE.  We believe that there also might be other aspects that are negatively influencing the company's earnings prospects.  Such as - low earnings retention or poor allocation of capital.     Next, when we compared with the industry, which has shrunk its earnings at a rate of 1.7% in the same 5-year period, we still found Star Plus Legend Holdings' performance to be quite bleak, because the company has been shrinking its earnings faster than the industry.   SEHK:6683 Past Earnings Growth October 18th 2025 Earnings growth is a huge factor in stock valuation.  It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).  Doing so will help them establish if the stock's future looks promising or ominous.    Is Star Plus Legend Holdings fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Star Plus Legend Holdings Making Efficient Use Of Its Profits?    Because Star Plus Legend Holdings doesn't pay any regular dividends, we infer that it is retaining all of its profits, which is rather perplexing when you consider the fact that there is no earnings growth to show for it.  It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.     Summary    On the whole, we feel that the performance shown by Star Plus Legend Holdings can be open to many interpretations.      While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.    Our risks dashboard would have the 4 risks we have identified for Star Plus Legend Holdings.    New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave 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":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}