Sino-Agri Leading Biosciences Co.,Ltd (SHSE:603970) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Sino-Agri Leading Biosciences Co.,Ltd (SHSE:603970) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
With its stock down 25% over the past month, it is easy to disregard Sino-Agri Leading BiosciencesLtd (SHSE:603970). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Sino-Agri Leading BiosciencesLtd's ROE.
随着过去一个月股价下跌25％，人们很容易忽视中国农业领先生物科技股份有限公司（SHSE:603970）。然而，对其健康的财务状况进行更仔细的观察可能会让你再次考虑。鉴于基本面通常推动长期市场结果，因此值得关注该公司。在本文中，我们决定聚焦于中国农业领先生物科技股份有限公司的ROE。
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.
股东权益回报率（ROE）是测试公司如何有效地增加其价值并管理投资者资金的指标。简而言之，它用于评估公司相对于股本资本的盈利能力。
How Is ROE Calculated?
净资产收益率怎么计算？
The formula for ROE is:
roe的公式是：
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 Sino-Agri Leading BiosciencesLtd is:
因此，根据以上公式，中国农业领先生物科技股份有限公司的ROE为：
15% = CN¥251m ÷ CN¥1.7b (Based on the trailing twelve months to March 2024).
15％= CN¥25100万 ÷ CN¥17亿（基于过去12个月截至2024年3月）。
The 'return' is the income the business earned over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.15 in profit.
"回报"是企业上一年度赚取的收入。这意味着，对于每个股东权益价值为CN¥1的公司，在利润方面产生CN¥0.15的效益。
What Is The Relationship Between ROE And Earnings Growth?
既然我们已经确定ROE是一种有效的利润生成标准，用于评估公司未来的盈利能力，我们现在需要评估公司“保留”为未来增长而重新投资的利润多少，这使我们对公司的增长潜力有了一个了解。一般而言，在其他条件相等的情况下，ROE和利润留存高的公司，增长率比没有这些属性的公司要高。
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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.
因此，我们已经了解到ROE衡量公司如何高效地创造利润。根据公司重新投资或“保留”的利润数量以及其有效性，我们随后能够评估公司的收益增长潜力。假设其他所有因素均保持不变，则ROE和利润保留率越高，相对于不一定具备这些特征的公司，公司的增长率就越高。
Sino-Agri Leading BiosciencesLtd's Earnings Growth And 15% ROE
中国农业领先生物科技股份有限公司的盈利增长和15％的ROE
To begin with, Sino-Agri Leading BiosciencesLtd seems to have a respectable ROE. On comparing with the average industry ROE of 6.4% the company's ROE looks pretty remarkable. This probably laid the ground for Sino-Agri Leading BiosciencesLtd's moderate 16% net income growth seen over the past five years.
首先，中国农业领先生物科技股份有限公司的ROE似乎很可观。与行业平均ROE 6.4％相比，该公司的ROE看起来相当显著。这可能为中国农业领先生物科技股份有限公司过去五年中适度的16％净收入增长奠定了基础。
Next, on comparing with the industry net income growth, we found that Sino-Agri Leading BiosciencesLtd's growth is quite high when compared to the industry average growth of 7.9% in the same period, which is great to see.
接下来，与行业净收益增长相比，我们发现中国农业领先生物科技股份有限公司的增长相当高，与同期行业平均增长7.9％相比，这是令人欣喜的。
Earnings growth is an important metric to consider when valuing a stock. 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. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Sino-Agri Leading BiosciencesLtd is trading on a high P/E or a low P/E, relative to its industry.
盈利增长是考虑股票价值时需要考虑的重要指标。投资者应尝试确定预期的盈利增长或下降，无论情况如何，都已计入价格。然后，这有助于他们确定股票是处于光明还是黯淡的未来。预期盈利增长的一个很好的指标是市盈率，它根据其盈利前景确定市场愿意为股票支付的价格。因此，您可能需要检查中国农业领先生物科技股份有限公司是否根据其行业的市盈率进行高或低价格交易。
Is Sino-Agri Leading BiosciencesLtd Making Efficient Use Of Its Profits?
中国农业领先生物科技股份有限公司是否高效利用其利润？
Sino-Agri Leading BiosciencesLtd has a three-year median payout ratio of 42%, which implies that it retains the remaining 58% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
中国农业领先生物科技股份有限公司的三年中位数股息支付比率为42％，这意味着它保留其利润余额的58％。这表明其股息得到了很好的覆盖，并且考虑到公司的良好增长，管理层看起来正在有效地重新投资其盈利。
Moreover, Sino-Agri Leading BiosciencesLtd is determined to keep sharing its profits with shareholders which we infer from its long history of six years of paying a dividend.
此外，我们从其长达六年的分红历史中推断，中国农业领先生物科技股份有限公司决心继续向股东分享利润。
Conclusion
结论
Overall, we are quite pleased with Sino-Agri Leading BiosciencesLtd's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总体而言，我们对中国农业领先生物科技股份有限公司的表现非常满意。特别是，我们喜欢公司高效地将其大量利润以高回报率重新投资。当然，这导致了公司收入的大幅增长。但是，考虑到当前的分析师预测，我们发现公司的收益预计将获得推动。要了解更多有关公司最新的分析师预测的信息，请查看此分析师预测可视化。
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论，只使用公正的方法论，我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议，也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意，我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈？对内容感到担忧？请直接与我们联系。或者，发送电子邮件至editorial-team@simplywallst.com。