Boasting A 9.9% Return On Equity, Is Shanghai HIUV New Materials Co.,Ltd (SHSE:688680) A Top Quality Stock?
Boasting A 9.9% Return On Equity, Is Shanghai HIUV New Materials Co.,Ltd (SHSE:688680) A Top Quality Stock?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Shanghai HIUV New Materials Co.,Ltd (SHSE:688680).
许多投资者仍在学习分析股票时可能有用的各种指标。本文适用于那些想了解股本回报率（ROE）的人。为了使课程以实用为基础，我们将使用ROE来更好地了解上海HIUV新材料有限公司。, Ltd（上海证券交易所股票代码：688680）。
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 Is ROE Calculated?
ROE 是如何计算的？
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 Shanghai HIUV New MaterialsLtd is:
因此，根据上述公式，上海HIUV新材料有限公司的投资回报率为：
9.9% = CN¥236m ÷ CN¥2.4b (Based on the trailing twelve months to December 2023).
9.9% = 2.36亿元人民币 ÷ 24亿元人民币（基于截至2023年12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¥0.10 in profit.
“回报” 是过去十二个月的利润。另一种思考方式是，每持有价值人民币1元的股权，该公司就能赚取0.10元人民币的利润。
Does Shanghai HIUV New MaterialsLtd Have A Good Return On Equity?
上海HIUV新材料有限公司的股本回报率是否良好？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Shanghai HIUV New MaterialsLtd has a superior ROE than the average (7.0%) in the Chemicals industry.
可以说，评估公司投资回报率的最简单方法是将其与行业平均水平进行比较。但是，这种方法仅在粗略检查时有用，因为各公司在相同的行业分类中确实存在很大差异。令人高兴的是，上海HIUV新材料有限公司的投资回报率高于化工行业的平均水平（7.0％）。
That's clearly a positive. With that said, a high ROE doesn't always indicate high profitability. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. You can see the 2 risks we have identified for Shanghai HIUV New MaterialsLtd by visiting our risks dashboard for free on our platform here.
这显然是积极的。话虽如此，高投资回报率并不总是表示高盈利能力。尤其是当一家公司使用高额债务为其债务融资时，这可能会提高其投资回报率，但高杠杆率会使公司面临风险。您可以访问我们的 2 种风险，查看我们为上海海紫新材料有限公司确定的两种风险 风险仪表板 在我们的平台上免费使用。
The Importance Of Debt To Return On Equity
债务对股本回报率的重要性
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
公司通常需要投资资金来增加利润。这笔现金可以来自发行股票、留存收益或债务。在第一和第二种情况下，投资回报率将反映这种使用现金投资业务的情况。在后一种情况下，用于增长的债务将提高回报，但不会影响总权益。因此，使用债务可以提高投资回报率，尽管可以比喻地说，暴风雨天气会带来额外的风险。
Shanghai HIUV New MaterialsLtd's Debt And Its 9.9% ROE
上海HIUV新材料有限公司的债务及其9.9％的投资回报率
Shanghai HIUV New MaterialsLtd clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.43. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
上海HIUV新材料有限公司显然使用大量债务来提高回报，因为其负债权益比率为1.43。由于投资回报率相当低，而且债务使用量很大，目前很难对这项业务感到兴奋。债务确实会带来额外的风险，因此只有当公司从中获得可观的回报时，债务才是真正值得的。
Conclusion
结论
Return on equity is one way we can compare its business quality of different companies. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股本回报率是我们可以比较不同公司的业务质量的一种方式。在我们的账簿中，尽管债务很低，但质量最高的公司的股本回报率却很高。如果两家公司的债务与股权比率大致相同，而一家公司的投资回报率更高，那么我通常更喜欢投资回报率更高的那家公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.
但是，投资回报率只是更大难题中的一部分，因为高质量的企业通常以较高的收益倍数进行交易。与股票价格所反映的预期相比，利润增长率尤其需要考虑。因此，我认为可能值得查看这份关于分析师对公司的预测的免费报告。
Of course Shanghai HIUV New MaterialsLtd may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
当然，上海HIUV新材料有限公司可能不是最好的买入股票。因此，您不妨免费查看其他投资回报率高、负债率低的公司的名单。
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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。