Kunshan Dongwei TechnologyLtd (SHSE:688700) May Have Issues Allocating Its Capital
Kunshan Dongwei TechnologyLtd (SHSE:688700) May Have Issues Allocating Its Capital
If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. In light of that, when we looked at Kunshan Dongwei TechnologyLtd (SHSE:688700) and its ROCE trend, we weren't exactly thrilled.
如果你正在寻找一款多功能装袋机，有几件事需要注意。在一个完美的世界中，我们希望看到一家公司向其业务投入更多资本，理想情况下，从这些资本中获得的回报也在增加。如果你看到这一点，这通常意味着它是一家拥有良好商业模式和大量盈利再投资机会的公司。有鉴于此，当我们查看昆山东威科技股份有限公司（SHSE: 688700）及其投资回报率趋势时，我们并不十分兴奋。
What Is Return On Capital Employed (ROCE)?
什么是资本使用回报率（ROCE）？
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Kunshan Dongwei TechnologyLtd, this is the formula:
对于那些不知道的人来说，ROCE是衡量公司年度税前利润（其回报率）的指标，相对于该业务使用的资本。要计算昆山东威科技有限公司的这个指标，公式如下：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率 = 息税前收益 (EBIT) ¥（总资产-流动负债）
0.063 = CN¥113m ÷ (CN¥2.4b - CN¥565m) (Based on the trailing twelve months to March 2024).
0.063 = 11300万元人民币 ÷（24元人民币-5.65亿元人民币） （基于截至2024年3月的过去十二个月）。
So, Kunshan Dongwei TechnologyLtd has an ROCE of 6.3%. On its own that's a low return on capital but it's in line with the industry's average returns of 5.6%.
因此，昆山东威科技有限公司的投资回报率为6.3％。这本身就是很低的资本回报率，但与该行业5.6％的平均回报率一致。
In the above chart we have measured Kunshan Dongwei TechnologyLtd's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Kunshan Dongwei TechnologyLtd .
在上图中，我们将昆山东威科技有限公司之前的投资回报率与之前的业绩进行了对比，但可以说，未来更为重要。如果您有兴趣，可以在我们的昆山东威科技有限公司免费分析师报告中查看分析师的预测。
So How Is Kunshan Dongwei TechnologyLtd's ROCE Trending?
那么昆山东威科技有限公司的投资回报率走势如何？
When we looked at the ROCE trend at Kunshan Dongwei TechnologyLtd, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 6.3% from 36% five years ago. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased.
当我们查看昆山东威科技有限公司的投资回报率趋势时，我们并没有获得太大的信心。在过去五年中，资本回报率从五年前的36％下降到6.3％。鉴于该企业在收入下滑的情况下雇用了更多的资本，这有点令人担忧。如果这种情况继续下去，你可能会看到一家试图进行再投资以促进增长，但由于销售额没有增加，实际上正在失去市场份额的公司。
On a side note, Kunshan Dongwei TechnologyLtd has done well to pay down its current liabilities to 24% of total assets. So we could link some of this to the decrease in ROCE. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE.
顺便说一句，昆山东威科技有限公司在偿还其流动负债占总资产的24％方面做得很好。因此，我们可以将其中一些与投资回报率的下降联系起来。更重要的是，这可以降低业务风险的某些方面，因为现在公司的供应商或短期债权人为其运营提供的资金减少了。由于该企业基本上是用自己的资金为其运营提供更多资金，因此您可能会争辩说，这降低了企业产生投资回报率的效率。
Our Take On Kunshan Dongwei TechnologyLtd's ROCE
我们对昆山东威科技有限公司投资回报率的看法
In summary, we're somewhat concerned by Kunshan Dongwei TechnologyLtd's diminishing returns on increasing amounts of capital. Yet despite these concerning fundamentals, the stock has performed strongly with a 26% return over the last three years, so investors appear very optimistic. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.
总而言之，我们对昆山东威科技有限公司资本额增加带来的回报减少感到担忧。然而，尽管存在这些令人担忧的基本面，但该股在过去三年中表现强劲，回报率为26％，因此投资者似乎非常乐观。无论如何，当前的潜在趋势对长期表现来说并不是一个好兆头，因此，除非趋势逆转，否则我们将开始将目光投向其他地方。
If you'd like to know more about Kunshan Dongwei TechnologyLtd, we've spotted 3 warning signs, and 1 of them doesn't sit too well with us.
如果你想进一步了解昆山东威科技有限公司，我们已经发现了3个警告标志，其中一个不太适合我们。
While Kunshan Dongwei TechnologyLtd may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
尽管昆山东威科技有限公司目前可能无法获得最高的回报，但我们编制了一份目前股本回报率超过25％的公司名单。在这里查看这个免费清单。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
对这篇文章有反馈吗？对内容感到担忧？直接联系我们。 或者，给编辑团队 (at) simplywallst.com 发送电子邮件。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对这篇文章有反馈吗？对内容感到担忧？直接联系我们。 或者，发送电子邮件至 editorial-team@simplywallst.com