Should Weakness in ShanDongDenghai Seeds Co.,Ltd's (SZSE:002041) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in ShanDongDenghai Seeds Co.,Ltd's (SZSE:002041) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
ShanDongDenghai SeedsLtd (SZSE:002041) has had a rough month with its share price down 14%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to ShanDongDenghai SeedsLtd's ROE today.
山东登海种业有限公司（深圳证券交易所：002041）经历了艰难的一个月，其股价下跌了14％。但是，该公司的基本面看起来相当不错，长期财务状况通常与未来的市场价格走势一致。特别是，我们今天将关注山东登海种业有限公司的投资回报率。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
ROE或股本回报率是评估公司如何有效地从股东那里获得的投资回报的有用工具。换句话说，它是一种盈利比率，用于衡量公司股东提供的资本的回报率。
Check out our latest analysis for ShanDongDenghai SeedsLtd
查看我们对山东登海种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 ROE is:
投资回报率的公式是：
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 ShanDongDenghai SeedsLtd is:
因此，根据上述公式，山东登海种业有限公司的投资回报率为：
7.7% = CN¥283m ÷ CN¥3.7b (Based on the trailing twelve months to September 2023).
7.7% = 2.83亿元人民币 ÷ 37亿元人民币（基于截至2023年9月的过去十二个月）。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.08 in profit.
“回报” 是每年的利润。这意味着，每持有价值1元人民币的股权，公司就会产生0.08元人民币的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前为止，我们已经了解到，投资回报率是衡量公司盈利能力的指标。根据公司选择再投资或 “保留” 的利润金额，我们随后能够评估公司未来的盈利能力。一般而言，在其他条件相同的情况下，股本回报率和利润保留率高的公司比不具备这些属性的公司的增长率更高。
ShanDongDenghai SeedsLtd's Earnings Growth And 7.7% ROE
山东登海种业有限公司的收益增长和7.7％的投资回报率
At first glance, ShanDongDenghai SeedsLtd's ROE doesn't look very promising. However, its ROE is similar to the industry average of 8.5%, so we won't completely dismiss the company. Particularly, the exceptional 38% net income growth seen by ShanDongDenghai SeedsLtd 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. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看，山东登海种业有限公司的投资回报率看起来并不十分乐观。但是，其投资回报率与行业平均水平的8.5％相似，因此我们不会完全解散该公司。特别是，山东登海种业有限公司在过去五年中实现了38％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推动这种增长。例如，该公司的派息率较低或管理效率很高。
We then compared ShanDongDenghai SeedsLtd'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 7.3% in the same 5-year period.
然后，我们将山东登海种业有限公司的净收入增长与该行业进行了比较，我们很高兴地看到，与同期同期7.3％的行业相比，该公司的增长数字更高。
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about ShanDongDenghai SeedsLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增长是股票估值的重要因素。投资者接下来需要确定的是，预期的收益增长或缺乏收益是否已经包含在股价中。然后，这可以帮助他们确定股票是面向光明还是暗淡的未来。如果你想知道山东登海种业有限公司的估值，可以看看这个衡量其市盈率与行业相比的指标。
Is ShanDongDenghai SeedsLtd Efficiently Re-investing Its Profits?
山东登海种业有限公司是否有效地将利润再投资？
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. This is likely what's driving the high earnings growth number discussed above.
尽管该公司过去确实支付了部分股息，但目前不支付股息。这可能是推动上述高收益增长数字的原因。
Conclusion
结论
In total, it does look like ShanDongDenghai SeedsLtd 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. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. 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.
总的来说，山东登海种业有限公司的业务看起来确实有一些积极的方面。尽管投资回报率很低，但由于再投资率很高，该公司的收益实现了可观的增长。在研究分析师当前的估计时，我们发现分析师预计该公司将继续保持最近的增长势头。这些分析师的预期是基于对该行业的广泛预期，还是基于公司的基本面？点击此处进入我们分析师对公司的预测页面。
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