Are Strong Financial Prospects The Force That Is Driving The Momentum In Neway Valve (Suzhou) Co., Ltd.'s SHSE:603699) Stock?
Are Strong Financial Prospects The Force That Is Driving The Momentum In Neway Valve (Suzhou) Co., Ltd.'s SHSE:603699) Stock?
Most readers would already be aware that Neway Valve (Suzhou)'s (SHSE:603699) stock increased significantly by 17% over the past week. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to Neway Valve (Suzhou)'s ROE today.
大多数读者已经意识到,纽威阀门(苏州)(上海证券交易所代码:603699)的股票在过去一周大幅上涨了17%。鉴于公司的出色表现,我们决定更仔细地研究其财务指标,因为公司的长期财务状况通常决定市场业绩。特别是,我们今天将关注纽威阀门(苏州)的投资回报率。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是股东需要考虑的重要因素,因为它可以告诉他们资本再投资的有效性。简而言之,它用于评估公司相对于其股权资本的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Neway Valve (Suzhou) is:
因此,根据上述公式,纽威阀门(苏州)的投资回报率为:
20% = CN¥716m ÷ CN¥3.7b (Based on the trailing twelve months to September 2023).
20% = 7.16亿元人民币 ¥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 profit over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.20 in profit.
“回报” 是过去十二个月的利润。另一种思考方式是,每持有价值1元人民币的股权,该公司就能获得0.20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. 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 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.
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。根据公司选择将多少利润进行再投资或 “保留”,我们便能够评估公司未来创造利润的能力。假设其他条件都一样,与功能不相同的公司相比,具有更高股本回报率和更高利润保留率的公司通常具有更高的增长率。
A Side By Side comparison of Neway Valve (Suzhou)'s Earnings Growth And 20% ROE
纽威阀门(苏州)的收益增长和20%的投资回报率的并排比较
To begin with, Neway Valve (Suzhou) seems to have a respectable ROE. On comparing with the average industry ROE of 7.6% the company's ROE looks pretty remarkable. This certainly adds some context to Neway Valve (Suzhou)'s decent 9.6% net income growth seen over the past five years.
首先,纽威阀门(苏州)的投资回报率似乎相当不错。与7.6%的行业平均投资回报率相比,该公司的投资回报率看起来相当可观。这无疑为纽威阀门(苏州)在过去五年中9.6%的净收入增长增添了一些背景信息。
As a next step, we compared Neway Valve (Suzhou)'s net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 12% in the same period.
下一步,我们将纽威阀门(苏州)的净收入增长与行业进行了比较,发现与同期12%的行业平均增长率相比,该公司的增长数字相似。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240213/0-76fc3bdb4b774915fb6d9fb85822c743-0-be0a123229d5393e3546421f86f2e925.png/big)
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). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is 603699 fairly valued? This infographic on the company's intrinsic value has everything you need to know.
为公司附加价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。通过这样做,他们将知道股票是走向清澈的蓝色海水还是沼泽水域在等着呢。603699 的价值是否合理?这张关于公司内在价值的信息图包含了你需要知道的一切。
Is Neway Valve (Suzhou) Efficiently Re-investing Its Profits?
纽威阀门(苏州)是否有效地将利润再投资?
The high three-year median payout ratio of 55% (or a retention ratio of 45%) for Neway Valve (Suzhou) suggests that the company's growth wasn't really hampered despite it returning most of its income to its shareholders.
Neway Valve(苏州)的三年期中位派息率高达55%(或留存率为45%),这表明尽管将大部分收入返还给了股东,但该公司的增长并没有受到真正的阻碍。
Moreover, Neway Valve (Suzhou) 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.
此外,纽威阀门(苏州)决心继续与股东分享利润,这是我们从其支付股息至少十年的悠久历史中推断出来的。
Conclusion
结论
In total, we are pretty happy with Neway Valve (Suzhou)'s performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that's probably a good sign. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. 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,我们对纽威阀门(苏州)的表现非常满意。该公司公布的可观收益增长给我们留下了特别深刻的印象,这可能得到了其高投资回报率的支持。尽管该公司将大部分收益作为股息支付,但尽管如此,它还是得以增加收益,因此这可能是一个好兆头。话虽如此,从分析师目前的估计来看,我们发现该公司的收益有望增强。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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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。