Guangdong Haid Group's (SZSE:002311) stock is up by 2.8% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to Guangdong Haid Group's ROE today.
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.
Check out our latest analysis for Guangdong Haid Group
How Do You Calculate Return On Equity?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Guangdong Haid Group is:
12% = CN¥2.1b ÷ CN¥18b (Based on the trailing twelve months to September 2022).
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.12.
What Is The Relationship Between ROE And 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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of Guangdong Haid Group's Earnings Growth And 12% ROE
To start with, Guangdong Haid Group's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 7.3%. This probably laid the ground for Guangdong Haid Group's moderate 9.2% net income growth seen over the past five years.
As a next step, we compared Guangdong Haid Group's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 7.4%.
SZSE:002311 Past Earnings Growth December 15th 2022
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. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Guangdong Haid Group fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Guangdong Haid Group Efficiently Re-investing Its Profits?
Guangdong Haid Group has a low three-year median payout ratio of 24%, meaning that the company retains the remaining 76% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.
Moreover, Guangdong Haid Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 33% over the next three years. Still, forecasts suggest that Guangdong Haid Group's future ROE will rise to 22% even though the the company's payout ratio is expected to rise. We presume that there could some other characteristics of the business that could be driving the anticipated growth in the company's ROE.
Summary
On the whole, we feel that Guangdong Haid Group's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
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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.
广东海德集团(SZSE：002311)的股票在过去三个月里上涨了2.8%。考虑到市场从长期来看会奖励强劲的金融类股，我们想知道，在这种情况下，情况是否如此。今天我们特别关注广东海德集团的净资产收益率。
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。
查看我们对广东海德集团的最新分析
你如何计算股本回报率？
这个股本回报率公式是：
股本回报率=(持续经营的)净利润？股东权益
因此，根据上述公式，广东海德集团的净资产收益率为：
12%=21亿元×180亿元(以截至2022年9月的12个月为基础)。
“回报”指的是一家公司过去一年的收益。因此，这意味着股东每投资1元人民币，公司就会产生0.12元的利润。
净资产收益率与盈利增长之间有什么关系？
我们已经证实，净资产收益率是一家公司未来收益的有效盈利指标。根据公司将这些利润再投资或“保留”多少，以及这样做的效率如何，我们就能够评估一家公司的收益增长潜力。假设其他条件相同，与没有相同特征的公司相比，拥有更高股本回报率和更高利润保留率的公司通常会有更高的增长率。
广东海德集团盈利增长与12%净资产收益率的并列比较
首先，广东海德集团的净资产收益率看起来可以接受。此外，该公司的净资产收益率(ROE)与行业平均水平7.3%相比相当有利。这可能为广东海德集团过去五年实现9.2%的温和净利润增长奠定了基础。
下一步，我们将广东海德集团的净收入增长与行业进行了比较，令人欣喜的是，我们发现该公司看到的增长高于行业平均7.4%的增长。
深圳证交所：002311过去的收益增长2022年12月15日
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。通过这样做，他们将知道股票是将进入清澈的蓝色水域，还是等待沼泽水域。与其他公司相比，广东海德集团的估值是否公平？这3个估值指标可能会帮助你做出决定。
广东海德集团是否有效地将利润进行了再投资？
广东海德集团的三年派息率中值较低，为24%，这意味着该公司将保留剩余76%的利润。这表明管理层正在将大部分利润进行再投资，以实现业务增长。
此外，广东海德集团决心继续与股东分享利润，这是我们从其至少十年的派息历史中推断出来的。在研究了最新的分析师共识数据后，我们发现，该公司未来三年的派息率预计将上升至33%。不过，预测显示，广东海德集团未来的净资产收益率将升至22%，尽管该公司的派息率预计会上升。我们推测，可能还有一些其他业务特征可能推动了公司净资产收益率的预期增长。
摘要
总体来说，我们觉得广东海德集团的表现相当不错。特别是，我们喜欢该公司对其业务进行大量再投资，并以高回报率进行投资。不出所料，这导致了令人印象深刻的收益增长。既然如此，最新的分析师预测显示，该公司的收益将继续增长。这些分析师的预期是基于对该行业的广泛预期，还是基于该公司的基本面？点击此处进入我们分析师对该公司的预测页面。
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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。
