Is Shanghai Mechanical & Electrical Industry Co.,Ltd.'s (SHSE:600835) Recent Price Movement Underpinned By Its Weak Fundamentals?
Is Shanghai Mechanical & Electrical Industry Co.,Ltd.'s (SHSE:600835) Recent Price Movement Underpinned By Its Weak Fundamentals?
With its stock down 19% over the past three months, it is easy to disregard Shanghai Mechanical & Electrical IndustryLtd (SHSE:600835). It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. 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 Shanghai Mechanical & Electrical IndustryLtd's ROE.
在过去的三个月里，上海机电工业股份有限公司的股票下跌了19%，人们很容易忽视它(上海证券交易所代码：600835)。市场可能忽视了该公司不同的财务状况，决定向负面情绪倾斜。股票价格通常是由公司的长期财务表现推动的，因此我们决定更多地关注公司的财务表现。在本文中，我们决定将重点放在上海机电工业有限公司的净资产收益率上。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
净资产收益率，即股本回报率，是评估一家公司从股东那里获得投资回报的有效程度的有用工具。简而言之，净资产收益率显示了每一美元相对于其股东投资产生的利润。
See our latest analysis for Shanghai Mechanical & Electrical IndustryLtd
查看我们对上海机电实业有限公司的最新分析
How To Calculate Return On Equity?
如何计算股本回报率？
The formula for return on equity is:
这个股本回报率公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率=(持续经营的)净利润？股东权益
So, based on the above formula, the ROE for Shanghai Mechanical & Electrical IndustryLtd is:
因此，根据上述公式，上海机电工业股份有限公司的净资产收益率为：
7.1% = CN¥1.1b ÷ CN¥15b (Based on the trailing twelve months to March 2022).
7.1%=CN元11亿×CN元150亿(以截至2022年3月的12个月为基础)。
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.07 in profit.
“收益”是过去12个月的利润。这意味着，股东权益每增加1元，公司就会产生0.07元的利润。
Why Is ROE Important For Earnings Growth?
为什么净资产收益率对收益增长很重要？
So far, we've learned that ROE is a measure of a company's profitability. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前为止，我们了解到净资产收益率是衡量一家公司盈利能力的指标。根据公司选择再投资或“保留”多少利润，我们就能够评估一家公司未来产生利润的能力。假设其他条件不变，净资产收益率和利润保留率越高，与不一定具有这些特征的公司相比，公司的增长率就越高。
A Side By Side comparison of Shanghai Mechanical & Electrical IndustryLtd's Earnings Growth And 7.1% ROE
上海机电股份有限公司盈利增长与净资产收益率7.1%的并列比较
When you first look at it, Shanghai Mechanical & Electrical IndustryLtd's ROE doesn't look that attractive. However, given that the company's ROE is similar to the average industry ROE of 8.2%, we may spare it some thought. Having said that, Shanghai Mechanical & Electrical IndustryLtd's five year net income decline rate was 8.5%. Bear in mind, the company does have a slightly low ROE. So that's what might be causing earnings growth to shrink.
乍一看，上海机电股份有限公司的净资产收益率(ROE)看起来并不那么吸引人。然而，鉴于该公司的净资产收益率(ROE)与8.2%的行业平均ROE相似，我们或许可以省去一些思考。话虽如此，上海机电工业有限公司的五年净收入降幅为8.5%。请记住，该公司的净资产收益率确实略低。因此，这可能是导致收益增长放缓的原因。
That being said, we compared Shanghai Mechanical & Electrical IndustryLtd's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 13% in the same period.
话虽如此，我们将上海机电工业有限公司的表现与行业进行了比较，当我们发现该公司在同一时期盈利缩水时，该行业的盈利却以13%的速度增长时，我们感到担忧。
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. 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 Shanghai Mechanical & Electrical IndustryLtd is trading on a high P/E or a low P/E, relative to its industry.
盈利增长是股票估值的一个重要因素。投资者应该尝试确定预期的收益增长或下降是否已计入价格，无论是哪种情况。这样做将有助于他们确定该股的未来看起来是光明的还是不祥的。衡量预期收益增长的一个很好的指标是市盈率，它根据一只股票的盈利前景决定市场愿意为其支付的价格。因此，你可能想看看上海机电工业股份有限公司相对于其行业的市盈率是高还是低。
Is Shanghai Mechanical & Electrical IndustryLtd Making Efficient Use Of Its Profits?
上海机电工业有限公司是否有效利用了利润？
Despite having a normal three-year median payout ratio of 35% (where it is retaining 65% of its profits), Shanghai Mechanical & Electrical IndustryLtd has seen a decline in earnings as we saw above. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
尽管上海机电工业有限公司正常的三年派息率中值为35%(该公司保留了65%的利润)，但正如我们上面看到的那样，它的收益出现了下降。因此，可能还有其他因素在起作用，可能会阻碍经济增长。例如，该业务一直面临一些不利因素。
Moreover, Shanghai Mechanical & Electrical IndustryLtd has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 35% of its profits over the next three years. Still, forecasts suggest that Shanghai Mechanical & Electrical IndustryLtd's future ROE will rise to 9.4% even though the the company's payout ratio is not expected to change by much.
此外，上海机电工业股份有限公司至少在十年或更长时间内一直在分红，这表明管理层肯定已经意识到，股东更喜欢分红，而不是收益增长。在研究了最新的分析师共识数据后，我们发现，预计该公司将在未来三年继续支付约35%的利润。尽管如此，预测显示上海机电工业有限公司未来的净资产收益率将升至9.4%，尽管该公司的派息率预计不会有太大变化。
Summary
摘要
In total, we're a bit ambivalent about Shanghai Mechanical & Electrical IndustryLtd's performance. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总体而言，我们对上海机电工业有限公司的表现有点矛盾。虽然该公司的再投资率确实很高，但低ROE意味着所有的再投资都没有给投资者带来任何好处，而且对收益增长产生了负面影响。话虽如此，我们研究了最新的分析师预测，发现尽管该公司过去的收益有所缩水，但分析师预计其未来的收益将会增长。要了解更多分析师对该公司的最新预测，请查看分析师对该公司预测的可视化。
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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.
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本文由Simply Wall St.撰写，具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论，我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议，也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意，我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。