Does The Market Have A Low Tolerance For Ningbo Kangqiang Electronics Co., Ltd's (SZSE:002119) Mixed Fundamentals?
Does The Market Have A Low Tolerance For Ningbo Kangqiang Electronics Co., Ltd's (SZSE:002119) Mixed Fundamentals?
It is hard to get excited after looking at Ningbo Kangqiang Electronics' (SZSE:002119) recent performance, when its stock has declined 11% over the past week. We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. In this article, we decided to focus on Ningbo Kangqiang Electronics' ROE.
看了宁波康强电子(SZSE:002119)的近期表现,很难感到兴奋,当时其股价在过去一周下跌了11%。但是,我们决定研究公司的财务状况,以确定它们是否与价格下跌有关。长期基本面通常是推动市场结果的因素,因此值得密切关注。在这篇文章中,我们决定重点关注宁波康强电子的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
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。简而言之,投资回报率显示了每美元从其股东投资中产生的利润。
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 Ningbo Kangqiang Electronics is:
因此,根据上述公式,宁波康强电子的投资回报率为:
6.2% = CN¥81m ÷ CN¥1.3b (Based on the trailing twelve months to December 2023).
6.2% = 8100万元人民币 ÷ 13亿元人民币(基于截至2023年12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¥0.06.
“回报” 是过去十二个月的税后收入。因此,这意味着公司每投资1元人民币,公司就会产生0.06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. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
我们已经确定,投资回报率是衡量公司未来收益的有效利润创造指标。我们现在需要评估公司为未来增长再投资或 “保留” 了多少利润,这样我们就可以了解公司的增长潜力。假设其他一切都保持不变,那么与不一定具有这些特征的公司相比,投资回报率和利润保留率越高,公司的增长率就越高。
Ningbo Kangqiang Electronics' Earnings Growth And 6.2% ROE
宁波康强电子的收益增长和6.2%的投资回报率
When you first look at it, Ningbo Kangqiang Electronics' ROE doesn't look that attractive. However, its ROE is similar to the industry average of 6.2%, so we won't completely dismiss the company. Having said that, Ningbo Kangqiang Electronics has shown a meagre net income growth of 4.6% over the past five years. Remember, the company's ROE is not particularly great to begin with. So this could also be one of the reasons behind the company's low growth in earnings.
当你第一次看时,宁波康强电子的投资回报率看起来并不那么吸引人。但是,其投资回报率与行业平均水平的6.2%相似,因此我们不会完全解散该公司。话虽如此,宁波康强电子在过去五年中表现出4.6%的微弱净收入增长。请记住,公司的投资回报率一开始并不是特别好。因此,这也可能是该公司收益增长缓慢的原因之一。
Next, on comparing with the industry net income growth, we found that Ningbo Kangqiang Electronics' reported growth was lower than the industry growth of 23% over the last few years, which is not something we like to see.
接下来,与行业净收入增长相比,我们发现宁波康强电子报告的增长低于过去几年23%的行业增长,这不是我们希望看到的。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240418/0-aef4bcee460cdc41aaf91c920b5acbcc-0-93961c9154457d0995a06ff3f1d8f7a4.png/big)
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Ningbo Kangqiang Electronics fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是对股票进行估值时要考虑的重要指标。无论如何,投资者应设法确定预期的收益增长或下降是否已计入其中。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。与其他公司相比,宁波康强电子的估值是否合理?这3种估值指标可能会帮助您做出决定。
Is Ningbo Kangqiang Electronics Efficiently Re-investing Its Profits?
宁波康强电子是否有效地将利润再投资?
A low three-year median payout ratio of 11% (implying that the company retains the remaining 89% of its income) suggests that Ningbo Kangqiang Electronics is retaining most of its profits. This should be reflected in its earnings growth number, but that's not the case. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
三年中位数派息率较低,为11%(这意味着该公司保留了其余收入的89%),这表明宁波康强电子保留了大部分利润。这应该反映在其收益增长数字上,但事实并非如此。因此,这里可能还有其他因素在起作用,这些因素可能会阻碍增长。例如,该业务面临一些阻力。
In addition, Ningbo Kangqiang Electronics has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.
此外,宁波康强电子在至少十年内一直在派发股息,这表明即使以业务增长为代价,保持股息支付对管理层来说更为重要。
Conclusion
结论
In total, we're a bit ambivalent about Ningbo Kangqiang Electronics' performance. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth.
总的来说,我们对宁波康强电子的表现有点矛盾。尽管该公司的再投资率确实很高,但低投资回报率意味着所有这些再投资都没有给投资者带来任何好处,而且还对收益增长产生了负面影响。
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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。