WCT Holdings Berhad's Return on Capital Employed Shows Encouraging Trends

WCT Holdings Berhad's return on capital employed has increased by 86% over the trailing five years, but remains low at 2.2%, underperforming the Construction industry average of 10%. The company is achieving more with less capital, but its total assets are shrinking. The improvement in ROCE is partly fueled by an increase in current liabilities.

Wellchange Holdings Berhad (WCT), a Hong Kong-based enterprise software solution provider, has reported a significant increase in its return on capital employed (ROCE) over the trailing five years. The company's ROCE has surged by 86%, reaching 2.2% as of September 12, 2025. While this improvement is notable, it remains below the industry average of 10% for the construction sector Wellchange Holdings Stock Price, News & Analysis^[1].

The increase in ROCE is partially attributed to an increase in current liabilities, suggesting that the company is managing its capital more efficiently. However, it is important to note that the company's total assets have been shrinking, indicating that the company may be focusing more on optimizing its balance sheet rather than expanding its asset base.

Despite the encouraging trend in ROCE, Wellchange Holdings' stock has faced several challenges in recent months. The company has experienced a decline in stock price, trading below the $1.00 threshold required by Nasdaq for 33 consecutive business days from March 11 to April 25, 2025. This has led to a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. Wellchange Holdings has been granted a 180-day compliance period until October 27, 2025, to address this issue .

Additionally, the company has been actively raising capital through various funding methods. In September 2025, Wellchange Holdings secured a $4 million private placement through the sale of 100 million Class A ordinary shares at approximately $0.04 per share . This follows a $10 million public offering of ordinary shares in January 2025, which was priced at $0.40 per share .

In conclusion, while Wellchange Holdings has shown improvement in its ROCE, the company still faces challenges in maintaining its stock price and meeting regulatory requirements. Investors should closely monitor the company's financial performance and compliance with regulatory standards to assess its long-term prospects.