Shandong Sino-Agri United Biotechnology Co.,Ltd's (SZSE:003042) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
Shandong Sino-Agri United Biotechnology Co.,Ltd's (SZSE:003042) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
The formula for return on equity is: 
Shandong Sino-Agri United BiotechnologyLtd's (SZSE:003042) stock is up by a considerable 45% over the past three months. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. In this article, we decided to focus on Shandong Sino-Agri United BiotechnologyLtd's ROE.
山东中农联合生物技术有限公司(SZSE：003042)的股票在过去三个月里上涨了45%。然而，我们想知道该公司不一致的财务数据是否会对当前的股价势头产生不利影响。在本文中，我们决定将重点放在山东中农联合生物技术有限公司的净资产收益率上。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率(ROE)是对一家公司增值和管理投资者资金的效率的测试。换句话说，它揭示了该公司成功地将股东投资转化为利润。
View our latest analysis for Shandong Sino-Agri United BiotechnologyLtd
查看我们对山东中农联合生物技术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 Shandong Sino-Agri United BiotechnologyLtd is:
因此，根据上述公式，山东中农联合生物技术有限公司的净资产收益率为：
6.5% = CN¥107m ÷ CN¥1.7b (Based on the trailing twelve months to September 2022).
6.5%=人民币1.07亿元×人民币17亿元(基于截至2022年9月的12个月)。
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¥0.06.
“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0.06元的利润。
What Is The Relationship Between ROE And Earnings Growth?
净资产收益率与盈利增长之间有什么关系？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 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，我们已经了解到净资产收益率衡量的是一家公司创造利润的效率。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。
Shandong Sino-Agri United BiotechnologyLtd's Earnings Growth And 6.5% ROE
山东中农联合生物技术有限公司盈利增长6.5%净资产收益率
On the face of it, Shandong Sino-Agri United BiotechnologyLtd's ROE is not much to talk about. Next, when compared to the average industry ROE of 9.6%, the company's ROE leaves us feeling even less enthusiastic. Given the circumstances, the significant decline in net income by 14% seen by Shandong Sino-Agri United BiotechnologyLtd over the last five years is not surprising. 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.
从表面上看，山东中农联合生物技术有限公司的净资产收益率(ROE)并没有太多可谈的内容。其次，与9.6%的行业平均净资产收益率相比，该公司的净资产收益率让我们感觉更不热情。在这种情况下，山东中农联合生物技术有限公司在过去五年中净收入大幅下降14%并不令人意外。我们认为，可能还有其他方面对公司的收益前景产生负面影响。例如-低收益留存或资本分配不佳。
That being said, we compared Shandong Sino-Agri United BiotechnologyLtd'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 20% in the same period.
话虽如此，我们将山东中农联合生物技术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20%的速度增长时，我们感到担忧。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. If you're wondering about Shandong Sino-Agri United BiotechnologyLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
赋予一家公司价值的基础在很大程度上与其盈利增长挂钩。对于投资者来说，重要的是知道市场是否已经消化了公司预期的收益增长(或下降)。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。如果你想知道山东中农联合生物技术有限公司的估值，看看这个衡量其市盈率的指标，与其行业相比。
Is Shandong Sino-Agri United BiotechnologyLtd Making Efficient Use Of Its Profits?
山东中农联合生物技术有限公司是否有效利用了利润？
Shandong Sino-Agri United BiotechnologyLtd's low three-year median payout ratio of 20% (or a retention ratio of 80%) over the last three years should mean that the company is retaining most of its earnings to fuel its growth but the company's earnings have actually shrunk. The low payout should mean that the company is retaining most of its earnings and consequently, should see some growth. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
山东中农联合生物技术有限公司过去三年的派息率中值较低，为20%(或留存率为80%)，这应该意味着该公司将保留大部分收益来推动增长，但该公司的收益实际上已经缩水。较低的派息应该意味着该公司保留了大部分收益，因此应该会看到一些增长。看起来可能还有其他一些原因来解释这方面的缺乏。例如，这项业务可能正在衰落。
Conclusion
结论
Overall, we have mixed feelings about Shandong Sino-Agri United BiotechnologyLtd. 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. 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 3 risks we have identified for Shandong Sino-Agri United BiotechnologyLtd.
总体而言，我们对山东中农联合生物技术有限公司的看法复杂。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。总而言之，我们将谨慎对待这家公司，其中一种方法是查看业务的风险概况。我们的风险仪表板将包含我们为山东中农联合生物技术有限公司确定的3个风险。
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