Chengdu Screen Micro-electronics CO.,LTD.'s (SHSE:688053) Dismal Stock Performance Reflects Weak Fundamentals
Chengdu Screen Micro-electronics CO.,LTD.'s (SHSE:688053) Dismal Stock Performance Reflects Weak Fundamentals
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity Chengdu Screen Micro-electronicsLTD (SHSE:688053) has had a rough three months with its share price down 18%. To decide if this trend could continue, we decided to look at its weak fundamentals as they shape the long-term market trends. Particularly, we will be paying attention to Chengdu Screen Micro-electronicsLTD's ROE today.
成都屏幕微电子股份有限公司（SHSE：688053）过去三个月股价下跌18％。为了确定这种趋势是否会继续，我们决定查看其虚弱的基本面，因为它们塑造了长期市场趋势。特别是，我们将关注成都屏幕微电子的roe。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或ROE是一项用于评估公司管理层如何利用公司资本的效率的关键指标。简而言之，它用于评估公司相对于其股本资本的盈利能力。
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 Chengdu Screen Micro-electronicsLTD is:
因此，根据上述公式，成都屏幕微电子的roe为：
1.3% = CN¥22m ÷ CN¥1.7b (Based on the trailing twelve months to March 2024).
1.3％= CN¥22m ÷ CN¥1.7b（基于截至2024年3月的过去12个月）。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.01.
“回报”是年利润。因此，这意味着对于其股东的每个CN¥1的投资，公司将创造CN¥0.01的利润。
What Has ROE Got To Do With Earnings Growth?
ROE与盈利增长有什么关系？
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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前为止，我们已经了解到ROE是衡量公司盈利能力的一个指标。现在我们需要评估公司再投资或“保留”未来增长所需的利润，然后我们可以大致了解公司的增长潜力。一般来说，在其他条件相等的情况下，具有高ROE和利润保留的公司比没有这些属性的公司具有更高的增长率。
A Side By Side comparison of Chengdu Screen Micro-electronicsLTD's Earnings Growth And 1.3% ROE
成都屏幕微电子的收益增长和1.3％的roe的并排比较
It is hard to argue that Chengdu Screen Micro-electronicsLTD's ROE is much good in and of itself. Not just that, even compared to the industry average of 6.3%, the company's ROE is entirely unremarkable. Therefore, Chengdu Screen Micro-electronicsLTD's flat earnings over the past five years can possibly be explained by the low ROE amongst other factors.
很难说成都屏幕微电子的roe本身很好。不仅如此，即使与行业平均水平6.3％相比，公司的roe也完全不起眼。因此，成都屏幕微电子过去五年的平坦收益可能可以通过低roe和其他因素来解释。
We then compared Chengdu Screen Micro-electronicsLTD's net income growth with the industry and found that the average industry growth rate was 6.4% in the same 5-year period.
然后，我们将成都屏幕微电子的净收入增长与行业进行了比较，并发现在同一5年期间，行业平均增长率为6.4％。
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). Doing so will help them establish if the stock's future looks promising or ominous. Is Chengdu Screen Micro-electronicsLTD fairly valued compared to other companies? These 3 valuation measures might help you decide.
给公司附加价值的基础很大程度上与其收益增长有关。了解市场是否已经定价了公司预期的盈利增长（或下降）对于投资者来说非常重要。这样做将帮助他们确定该股票的未来前景是光明还是黯淡。与其他公司相比，成都屏幕微电子是否被公正评估？这3个估值指标可能有所帮助。
Is Chengdu Screen Micro-electronicsLTD Using Its Retained Earnings Effectively?
成都屏幕微电子是否有效地利用其留存收益？
The high three-year median payout ratio of 98% (meaning, the company retains only 1.6% of profits) for Chengdu Screen Micro-electronicsLTD suggests that the company's earnings growth was miniscule as a result of paying out a majority of its earnings.
成都屏幕微电子的高三年平均派息比率为98％（意味着公司仅留下1.6％的利润），这意味着该公司的盈利增长微不足道，因为它支付了大部分利润。
Conclusion
结论
Overall, we would be extremely cautious before making any decision on Chengdu Screen Micro-electronicsLTD. Specifically, it has shown quite an unsatisfactory performance as far as earnings growth is concerned, and a poor ROE and an equally poor rate of reinvestment seem to be the reason behind this inadequate performance. Up till now, we've only made a short study of the company's growth data. So it may be worth checking this free detailed graph of Chengdu Screen Micro-electronicsLTD's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance.
总体而言，在做出任何关于成都屏幕微电子的决定之前，我们都应该非常谨慎。具体而言，就收益增长而言，它的表现相当令人不满意，而较低的roe和同样低的再投资率似乎是造成这种不足表现的原因。到目前为止，我们只对公司的增长数据进行了简要的研究。因此，可以查看成都屏幕微电子过去的收益、营业收入和现金流的自由详细图表，以深入了解该公司的表现。
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