Declining Stock and Decent Financials: Is The Market Wrong About Innovation New Material Technology Co., Ltd. (SHSE:600361)?
Declining Stock and Decent Financials: Is The Market Wrong About Innovation New Material Technology Co., Ltd. (SHSE:600361)?
With its stock down 13% over the past three months, it is easy to disregard Innovation New Material Technology (SHSE:600361). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Innovation New Material Technology's ROE today.
在过去三个月中,其股票下跌了13%,很容易忽视创新新材料技术(SHSE:600361)。但是,从长远来看,股票价格通常由公司的财务状况驱动,在这种情况下,这看起来相当可观。特别是,我们今天将关注创新新材料技术的投资回报率。
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. Put another way, it reveals the company's success at turning shareholder investments into profits.
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。换句话说,它揭示了公司成功地将股东投资转化为利润。
How To Calculate Return On Equity?
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 Innovation New Material Technology is:
因此,根据上述公式,创新新材料技术的投资回报率为:
9.5% = CN¥944m ÷ CN¥9.9b (Based on the trailing twelve months to September 2023).
9.5% = 9.44亿元人民币 ÷ 99亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the amount earned after tax 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¥0.10.
“回报” 是过去十二个月的税后收入。因此,这意味着其股东每投资1元人民币,公司就会产生0.10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?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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.
到目前为止,我们已经了解到,投资回报率衡量的是公司创造利润的效率。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 Innovation New Material Technology's Earnings Growth And 9.5% ROE
创新新材料科技的收益增长和9.5%的投资回报率的并排比较
At first glance, Innovation New Material Technology's ROE doesn't look very promising. Yet, a closer study shows that the company's ROE is similar to the industry average of 8.4%. Particularly, the exceptional 56% net income growth seen by Innovation New Material Technology over the past five years is pretty remarkable. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看,创新新材料科技的投资回报率看起来并不十分乐观。然而,一项更仔细的研究表明,该公司的投资回报率与行业平均水平的8.4%相似。特别是,创新新材料技术在过去五年中实现了56%的惊人净收入增长,这非常引人注目。考虑到投资回报率不是特别高,我们认为还可能有其他因素在起作用,这些因素可能会影响公司的增长。例如,该公司的派息率很低或管理得很高效。
As a next step, we compared Innovation New Material Technology'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 13%.
下一步,我们将Innovation New Material Technology的净收入增长与该行业进行了比较,令人高兴的是,我们发现该公司的增长高于13%的行业平均增长。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240221/0-d4be4eac2336eb79fa30403ca5d99dc1-0-654dfd8804641cd90216276b04961f53.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). Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Innovation New Material Technology is trading on a high P/E or a low P/E, relative to its industry.
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。这样做将帮助他们确定股票的未来是乐观还是不祥的。衡量预期收益增长的一个很好的指标是市盈率,它根据收益前景决定了市场愿意为股票支付的价格。因此,您可能需要检查创新新材料科技相对于其行业是高市盈率还是低市盈率。
Is Innovation New Material Technology Making Efficient Use Of Its Profits?
创新新材料技术是否正在有效利用其利润?
Innovation New Material Technology has a three-year median payout ratio of 31% (where it is retaining 69% of its income) which is not too low or not too high. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Innovation New Material Technology is reinvesting its earnings efficiently.
Innovation New Material Technology的三年派息率中位数为31%(保留了收入的69%),不太低或不太高。这表明其股息已得到充分支付,鉴于我们上面讨论的高增长,Innovation New Material Technology似乎正在有效地对其收益进行再投资。
Besides, Innovation New Material Technology has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 15% over the next three years. The fact that the company's ROE is expected to rise to 14% over the same period is explained by the drop in the payout ratio.
此外,创新新材料技术已经派发了至少十年或更长时间的股息。这表明该公司致力于与股东分享利润。现有的分析师估计表明,该公司未来的派息率预计将在未来三年降至15%。该公司的投资回报率预计将在同期上升至14%,这一事实可以用派息率的下降来解释。
Summary
摘要
In total, it does look like Innovation New Material Technology has some positive aspects to its business. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总的来说,创新新材料技术确实为其业务带来了一些积极的方面。尽管回报率很低,但由于对业务进行了大量再投资,该公司的收益增长令人印象深刻。话虽如此,正如分析师目前的估计所预测的那样,该公司的收益增长预计将放缓。要了解有关公司未来收益增长预测的更多信息,请查看这份关于分析师预测的免费报告,以了解更多信息。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
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。