Declining Stock and Solid Fundamentals: Is The Market Wrong About Anhui Honglu Steel Construction(Group) CO., LTD (SZSE:002541)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Anhui Honglu Steel Construction(Group) CO., LTD (SZSE:002541)?
Anhui Honglu Steel Construction(Group) (SZSE:002541) has had a rough month with its share price down 12%. 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. Specifically, we decided to study Anhui Honglu Steel Construction(Group)'s ROE in this article.
安徽鸿路钢构(集团)(深圳证券交易所:002541)股价下跌12%,本月表现不佳。但是,如果您仔细观察,您可能会发现其强大的财务状况意味着,考虑到市场通常奖励好的财务状况的公司,该股票在长期内有可能看到价格上涨。具体而言,我们决定在本文中研究安徽鸿路钢构(集团)ROE。
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. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
roe或权益回报率是评估公司有效利用股东投资产生回报效率的有用工具。简而言之,roe显示每个股东投资所产生的利润。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
The formula for return on equity is:
权益回报率的计算公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润(从持续经营中获得)÷ 股东权益
So, based on the above formula, the ROE for Anhui Honglu Steel Construction(Group) is:
因此,根据上述公式,安徽鸿路钢构(集团)的ROE为:
13% = CN¥1.2b ÷ CN¥9.4b (Based on the trailing twelve months to March 2024).
13%=CN¥1.2b÷CN¥9.4b(截至2024年3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¥0.13.
“回报”是指过去十二个月税后所得。这意味着对于每一元股东投资,公司会产生0.13元的利润。
What Has ROE Got To Do With Earnings Growth?
ROE与盈利增长有什么关系?
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 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.
我们已经确定ROE作为公司未来收益的有效利润生成度量。根据公司“保留”多少利润以及它如何有效地保留利润,我们能够评估公司的收益增长潜力。假设其他所有条件相同,具有更高股东权益回报率和更高利润保留的公司通常是与没有相同特征的公司相比增长速度更高的公司。
Anhui Honglu Steel Construction(Group)'s Earnings Growth And 13% ROE
安徽鸿路钢构(集团)的盈利增长和13%的ROE
To begin with, Anhui Honglu Steel Construction(Group) seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 7.4%. This certainly adds some context to Anhui Honglu Steel Construction(Group)'s decent 20% net income growth seen over the past five years.
首先,安徽鸿路钢构(集团)似乎有一个体面的ROE。此外,该公司的ROE与行业平均水平相比相当有利。这无疑为安徽鸿路钢构(集团)过去五年中可观的20%净利润增长增添了一些背景。
We then compared Anhui Honglu Steel Construction(Group)'s net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 12% in the same 5-year period.
然后,我们将安徽鸿路钢构(集团)的净利润增长与行业进行了比较,并且很高兴地看到,该公司的增长率比在同样五年期间增长了12%的行业高。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240610/0-6143402082aa2f882738719625bdbcf6-0-595292a3f779a1edc723dd0f2c688ff7.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). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is 002541 worth today? The intrinsic value infographic in our free research report helps visualize whether 002541 is currently mispriced by the market.
公司附加值的基础在很大程度上与其盈利增长息息相关。投资者知道市场是否定价了公司预期的盈利增长(或下降)非常重要。这样做,他们将会知道该股票是进入清澈的蓝水区还是等待沼泽水。002541今天值多少钱?我们免费研究报告中的内在价值信息图表可以帮助您想象002541是否被市场目前错误定价。
Is Anhui Honglu Steel Construction(Group) Making Efficient Use Of Its Profits?
安徽鸿路钢构(集团)是否有效利用其利润?
In Anhui Honglu Steel Construction(Group)'s case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 15% (or a retention ratio of 85%), which suggests that the company is investing most of its profits to grow its business.
在安徽鸿路钢构(集团)的情况下,其体面的盈利增长可能可以解释为其三年的中位数支付率很低,仅为15%(或保留率为85%),这表明该公司正在将其大部分利润投资于业务增长。
Moreover, Anhui Honglu Steel Construction(Group) is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 18%. As a result, Anhui Honglu Steel Construction(Group)'s ROE is not expected to change by much either, which we inferred from the analyst estimate of 13% for future ROE.
此外,安徽鸿路钢构(集团)决心继续与股东分享其利润,我们从其至少十年付息历史推断出来。根据最新的分析师估计,我们发现该公司未来三年的股息支付比率预计将保持稳定,为18%。因此,我们推断出Anhui Honglu Steel Construction (Group)未来ROE的分析师估计为13%。
Conclusion
结论
In total, we are pretty happy with Anhui Honglu Steel Construction(Group)'s performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. 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,我们对安徽鸿路钢构(集团)的表现非常满意。特别是,我们喜欢公司正在大量重新投资其业务,并以很高的回报率进行投资。毫不奇怪,这导致了可观的盈利增长。但是,预测中分析师估计,公司的盈利增长预计将放缓。要了解有关公司未来盈利增长预测的更多信息,请查看有关该公司分析师预测的免费报告。
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