Jiangxi First Hydraulic Co., Ltd.'s (SZSE:301446) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Jiangxi First Hydraulic Co., Ltd.'s (SZSE:301446) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Jiangxi First Hydraulic (SZSE:301446) has had a rough week with its share price down 19%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Jiangxi First Hydraulic's ROE today.
江西第一液压(深圳证券交易所代码:301446)经历了艰难的一周,其股价下跌了19%。但是,如果你密切关注,你可能会发现,鉴于市场通常会奖励财务状况良好的公司,其强劲的财务状况可能意味着该股的长期价值可能会增加。特别是,我们今天将关注江西第一液压的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. 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对公司增值和管理投资者资金的有效性的考验。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?
The formula for ROE is:
ROE 的公式是:
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 Jiangxi First Hydraulic is:
因此,根据上述公式,江西第一液压的投资回报率为:
15% = CN¥162m ÷ CN¥1.1b (Based on the trailing twelve months to September 2023).
15% = 1.62亿元人民币 ÷ 11亿元人民币(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¥0.15 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0.15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. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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盈利指标。然后,我们能够评估公司的收益增长潜力,具体取决于公司对这些利润进行再投资或 “保留” 了多少及其有效性。假设其他一切保持不变,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。
A Side By Side comparison of Jiangxi First Hydraulic's Earnings Growth And 15% ROE
江西第一液压的收益增长和15%的投资回报率的并排比较
At first glance, Jiangxi First Hydraulic seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 7.4%. This certainly adds some context to Jiangxi First Hydraulic's exceptional 27% net income growth seen over the past five years. However, there could also be other causes behind this growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看,江西第一液压的投资回报率似乎不错。此外,该公司的投资回报率与行业平均水平的7.4%相比相当不错。这无疑为江西第一液压在过去五年中惊人的27%净收入增长增添了一些背景信息。但是,这种增长背后可能还有其他原因。例如,该公司的派息率较低或管理效率很高。
Next, on comparing with the industry net income growth, we found that Jiangxi First Hydraulic'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,与行业净收入增长相比,我们发现,与同期行业平均增长11%相比,江西第一液压的增长相当高,这真是太好了。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240423/0-8f3e0d9bf069eeb0e9aac7698df80425-0-9c891449b749aff45e1a9c7b5c34f663.png/big)
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is Jiangxi First Hydraulic fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是股票估值的重要因素。无论情况如何,投资者都应设法确定预期的收益增长或下降是否已计入其中。然后,这可以帮助他们确定股票是为光明还是暗淡的未来而布局。与其他公司相比,江西第一液压的估值是否合理?这3种估值指标可能会帮助您做出决定。
Is Jiangxi First Hydraulic Using Its Retained Earnings Effectively?
江西第一液压是否有效地使用了其留存收益?
Jiangxi First Hydraulic's ' three-year median payout ratio is on the lower side at 4.7% implying that it is retaining a higher percentage (95%) 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.
江西第一液压的三年中位数派息率处于较低水平,为4.7%,这意味着它保留了更高的利润百分比(95%)。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。
While Jiangxi First Hydraulic has been growing its earnings, it only recently started to pay dividends which likely means that the company decided to impress new and existing shareholders with a dividend.
尽管江西第一液压一直在增加收益,但它直到最近才开始派发股息,这可能意味着该公司决定通过分红来打动新老股东。
Summary
摘要
Overall, we are quite pleased with Jiangxi First Hydraulic's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. 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,我们对江西第一液压的表现非常满意。特别是,很高兴看到该公司正在对其业务进行大量投资,再加上高回报率,这为其收益带来了可观的增长。既然如此,对分析师最新预测的研究表明,预计该公司未来的收益增长将放缓。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。