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Huaren Pharmaceutical Co., Ltd.'s (SZSE:300110) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?

Huaren Pharmaceutical Co., Ltd.'s (SZSE:300110) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?

华仁药业有限公司's (SZSE: 300110) 股票最近表现疲软,但财务前景看起来不错:市场错了吗?
Simply Wall St ·  04/17 01:17

With its stock down 20% over the past three months, it is easy to disregard Huaren Pharmaceutical (SZSE:300110). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study Huaren Pharmaceutical's ROE in this article.

华仁制药(深圳证券交易所代码:300110)的股票在过去三个月中下跌了20%,因此很容易被忽视。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。具体而言,我们决定在本文中研究华仁制药的投资回报率。

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.

股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。换句话说,它是衡量公司股东提供的资本回报率的盈利比率。

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 Huaren Pharmaceutical is:

因此,根据上述公式,华仁制药的投资回报率为:

7.2% = CN¥196m ÷ CN¥2.7b (Based on the trailing twelve months to September 2023).

7.2% = 1.96亿元人民币 ÷ 27亿元人民币(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¥0.07 in profit.

“回报” 是每年的利润。这意味着,公司每获得价值1元人民币的股东权益,就会产生0.07元的利润。

What Has ROE Got To Do With Earnings Growth?

投资回报率与收益增长有什么关系?

So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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,投资回报率是衡量公司盈利能力的指标。现在,我们需要评估公司再投资或 “保留” 了多少利润以用于未来的增长,从而使我们对公司的增长潜力有所了解。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 Huaren Pharmaceutical's Earnings Growth And 7.2% ROE

华仁制药的收益增长和7.2%的投资回报率的并排比较

When you first look at it, Huaren Pharmaceutical's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 8.2%. Moreover, we are quite pleased to see that Huaren Pharmaceutical's net income grew significantly at a rate of 34% over the last five years. 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.

当你第一次看时,华仁制药的投资回报率看起来并不那么吸引人。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8.2%相似。此外,我们非常高兴地看到,华仁制药的净收入在过去五年中以34%的速度大幅增长。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——高收益留存率或实行高效管理。

Next, on comparing with the industry net income growth, we found that Huaren Pharmaceutical's growth is quite high when compared to the industry average growth of 11% in the same period, which is great to see.

接下来,与行业净收入增长进行比较时,我们发现,与同期行业平均增长11%相比,华仁制药的增长相当高,这真是太好了。

past-earnings-growth
SZSE:300110 Past Earnings Growth April 17th 2024
SZSE: 300110 过去的收益增长 2024 年 4 月 17 日

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. Is Huaren Pharmaceutical fairly valued compared to other companies? These 3 valuation measures might help you decide.

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。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。与其他公司相比,华仁制药的估值是否合理?这3种估值指标可能会帮助您做出决定。

Is Huaren Pharmaceutical Efficiently Re-investing Its Profits?

华仁制药是否有效地将其利润再投资?

Huaren Pharmaceutical's ' three-year median payout ratio is on the lower side at 16% implying that it is retaining a higher percentage (84%) of its profits. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.

华仁制药的三年派息率中位数处于较低水平,为16%,这意味着它保留了更高的利润百分比(84%)。这表明管理层正在将大部分利润再投资于业务增长,公司的增长就证明了这一点。

Besides, Huaren Pharmaceutical has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.

此外,华仁制药已经派发股息至少十年或更长时间。这表明该公司致力于与股东分享利润。

Conclusion

结论

In total, it does look like Huaren Pharmaceutical 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. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. Our risks dashboard would have the 3 risks we have identified for Huaren Pharmaceutical.

总的来说,华仁制药的业务看起来确实有一些积极的方面。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。虽然我们不会完全解散公司,但我们要做的是努力确定业务的风险,以便在公司周围做出更明智的决定。我们的风险仪表板将包含我们为华仁制药确定的三种风险。

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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.

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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。

声明:本内容仅用作提供资讯及教育之目的,不构成对任何特定投资或投资策略的推荐或认可。 更多信息
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