Bestechnic (Shanghai) Co., Ltd. (SHSE:688608) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Bestechnic (Shanghai) Co., Ltd. (SHSE:688608) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Bestechnic (Shanghai)'s (SHSE:688608) stock is up by a considerable 32% over the past three months. However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health. In this article, we decided to focus on Bestechnic (Shanghai)'s ROE.
Bestechnic(上海)(SHSE:688608)的股票在过去三个月中上涨了相当可观的32%。然而,我们决定关注该公司的基本面,这些基本面似乎没有给出关于公司的财务状况的明确信号。在本文中,我们决定关注Bestechnic(上海)的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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
roe或股东权益回报率是评估公司如何有效地从股东那里获得回报的有用工具。简而言之,它用于评估公司相对于其权益资本的盈利能力。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算:
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 Bestechnic (Shanghai) is:
因此,根据上述公式,Bestechnic(上海)的roe为:
2.5% = CN¥152m ÷ CN¥6.1b (Based on the trailing twelve months to March 2024).
2.5% = CN¥15200万 ÷ CN¥61亿 (基于截至2024年3月的过去十二个月的数据)。
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.02 in profit.
“回报”是年利润。另一种思考方法是,对于每元人民币的股权,公司能够赚取0.02元人民币的利润。
Why Is ROE Important For Earnings Growth?
ROE对于盈利增长的重要性是什么?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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衡量公司利润的效率如何。基于公司选择再投资或保留多少利润,我们随后能够评估公司未来产生利润的能力。总的来说,在其他条件相等的情况下,具有高ROE和利润保留的公司的增长率比没有这些特征的公司要高。
Bestechnic (Shanghai)'s Earnings Growth And 2.5% ROE
Bestechnic(上海)的盈利增长和2.5%的roe。
It is quite clear that Bestechnic (Shanghai)'s ROE is rather low. Even compared to the average industry ROE of 5.8%, the company's ROE is quite dismal. For this reason, Bestechnic (Shanghai)'s five year net income decline of 12% is not surprising given its lower ROE. However, there could also be other factors causing the earnings to decline. Such as - low earnings retention or poor allocation of capital.
很明显,Bestechnic(上海)的roe相当低。即使与行业平均roe5.8%相比,该公司的roe也相当惨淡。因此,考虑到其较低的roe,Bestechnic(上海)五年的净收入下降12%并不让人意外。然而,可能也有其他因素导致收益下降。例如-低收益保留或资本配置不佳
That being said, we compared Bestechnic (Shanghai)'s performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 20% in the same 5-year period.
话虽如此,我们比较了Bestechnic(上海)的业绩与行业,并在发现该公司缩减收益的同时,行业在同一5年期内的收益增长率为20%时感到担忧。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Bestechnic (Shanghai) fairly valued compared to other companies? These 3 valuation measures might help you decide.
价值投资一定程度上取决于盈利增长。投资者需要判断的是,预期的盈利增长是否已经反映在股价中。通过这样做,他们会有一个想法,股票是进入清澈的蓝色海洋还是面临沼泽般的困境。与其他公司相比,Bestechnic(上海)的估值是否公平?这三个估值指标可能会帮助您决定。
Is Bestechnic (Shanghai) Using Its Retained Earnings Effectively?
Bestechnic(上海)有效地利用了其保留盈利吗?
Bestechnic (Shanghai)'s low three-year median payout ratio of 12% (implying that it retains the remaining 88% of its profits) comes as a surprise when you pair it with the shrinking earnings. This typically shouldn't be the case when a company is retaining most of its earnings. So there might be other factors at play here which could potentially be hampering growth. For instance, the business has faced some headwinds.
当您将其与萎缩的收益相配对时,Bestechnic(上海)较低的三年中位支付比率为12%(意味着它将其剩余88%的利润保留下来)令人惊讶。当一家公司保留了大部分利润时,通常不会出现这种情况。因此,可能存在其他因素影响增长。例如,该业务面临了一些阻力。
In addition, Bestechnic (Shanghai) has been paying dividends over a period of three years suggesting that keeping up dividend payments is preferred by the management even though earnings have been in decline. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 14% of its profits over the next three years. Regardless, the future ROE for Bestechnic (Shanghai) is predicted to rise to 6.7% despite there being not much change expected in its payout ratio.
此外,Bestechnic(上海)的分红派息已持续三年,表明即使收益下降,管理层也更喜欢维持股息支付。在研究了最新的分析师共识数据后,我们发现,预计该公司在未来三年内将继续支付其利润的约14%。尽管如此,Bestechnic(上海)未来的roe预计将上升至6.7%,尽管不会在其支付比率上有太大的变化。
Conclusion
结论
Overall, we have mixed feelings about Bestechnic (Shanghai). Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总的来说,我们对Bestechnic(上海)的感觉有些复杂。尽管它似乎保留了大部分利润,在roe低的情况下,投资者可能并没有从所有的再投资中受益。低的盈利增长表明了我们的观点的正确性。但是,我们研究了最新的分析师预测,并发现,虽然该公司在过去曾缩减收益,但分析师预计其未来的收益将增长。要了解更多有关该公司最新分析师预测的信息,请查看此分析师预测的可视化。
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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