Do Its Financials Have Any Role To Play In Driving Guangdong Jiaying Pharmaceutical Co., Ltd's (SZSE:002198) Stock Up Recently?
Do Its Financials Have Any Role To Play In Driving Guangdong Jiaying Pharmaceutical Co., Ltd's (SZSE:002198) Stock Up Recently?
Most readers would already be aware that Guangdong Jiaying Pharmaceutical's (SZSE:002198) stock increased significantly by 18% over the past week. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Guangdong Jiaying Pharmaceutical's ROE.
大多数读者已经意识到，广东嘉应药业（SZSE: 002198）的股票在过去一周大幅上涨了18％。正如大多数人所知道的那样，基本面通常是长期指导市场价格走势的因素，因此我们决定今天查看公司的关键财务指标，以确定它们在最近的价格走势中是否可以发挥任何作用。在本文中，我们决定重点关注广东嘉应药业的投资回报率。
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.
投资回报率或股本回报率是评估公司如何有效地从股东那里获得投资回报的有用工具。简而言之，投资回报率显示了每美元从其股东投资中产生的利润。
View our latest analysis for Guangdong Jiaying Pharmaceutical
查看我们对广东嘉应药业的最新分析
How To Calculate Return On Equity?
如何计算股本回报率？
The formula for ROE is:
这个 投资回报率公式 是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营）≥ 股东权益
So, based on the above formula, the ROE for Guangdong Jiaying Pharmaceutical is:
因此，根据上述公式，广东佳英药业的投资回报率为：
7.2% = CN¥54m ÷ CN¥741m (Based on the trailing twelve months to March 2023).
7.2% = 5400万人民币 ⇒ 7.41亿元人民币（基于截至2023年3月的过去十二个月）。
The 'return' is the profit over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.07.
“回报” 是过去十二个月的利润。因此，这意味着其股东每投资1元人民币，公司就会产生0.07元人民币的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系？
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 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.
我们已经确定，投资回报率是衡量公司未来收益的有效盈利指标。然后，我们能够评估公司的收益增长潜力，具体取决于公司对这些利润进行再投资或 “保留” 了多少及其有效性。假设其他一切保持不变，那么与不一定具有这些特征的公司相比，投资回报率和利润保留率越高，公司的增长率就越高。
Guangdong Jiaying Pharmaceutical's Earnings Growth And 7.2% ROE
广东嘉应药业的收益增长和 7.2% 的投资回报率
On the face of it, Guangdong Jiaying Pharmaceutical's ROE is not much to talk about. However, given that the company's ROE is similar to the average industry ROE of 8.8%, we may spare it some thought. Particularly, the exceptional 49% net income growth seen by Guangdong Jiaying Pharmaceutical over the past five years is pretty remarkable. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. Such as - high earnings retention or an efficient management in place.
从表面上看，广东嘉应药业的投资回报率并不多。但是，鉴于该公司的投资回报率与8.8％的平均行业投资回报率相似，我们可以省略一下。特别是，广东嘉应药业在过去五年中实现了49％的惊人净收入增长，这非常引人注目。鉴于投资回报率略低，可能还有其他一些方面在推动这种增长。例如-高收益留存率或有效的管理。
We then compared Guangdong Jiaying Pharmaceutical's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 8.8% in the same 5-year period.
然后，我们将广东嘉应药业的净收入增长与该行业进行了比较，我们很高兴地看到，与同期增长率为8.8％的行业相比，该公司的增长数字更高。
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). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Guangdong Jiaying Pharmaceutical's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
为公司增值的基础在很大程度上与其收益增长息息相关。对于投资者来说，重要的是要知道市场是否对公司的预期收益增长（或下降）进行了定价。然后，这可以帮助他们确定股票是为光明的未来还是暗淡的未来准备的。如果你想知道广东佳英药业的估值，可以看看这个衡量其与行业相比的市盈率指标。
Is Guangdong Jiaying Pharmaceutical Making Efficient Use Of Its Profits?
广东嘉应药业是否在有效利用利润？
Given that Guangdong Jiaying Pharmaceutical doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鉴于广东嘉应药业没有向股东支付任何股息，我们推断该公司一直在将其所有利润再投资以发展业务。
Conclusion
结论
In total, it does look like Guangdong Jiaying Pharmaceutical has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings.
总的来说，看来广东嘉应药业的业务确实有一些积极的方面。由于再投资率很高，尽管投资回报率很低，但该公司的收益却取得了可观的增长。
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