Will Weakness in Shenzhen Fortune Trend Technology Co., Ltd.'s (SHSE:688318) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Shenzhen Fortune Trend Technology Co., Ltd.'s (SHSE:688318) Stock Prove Temporary Given Strong Fundamentals?
Shenzhen Fortune Trend technology (SHSE:688318) has had a rough month with its share price down 16%. 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. Particularly, we will be paying attention to Shenzhen Fortune Trend technology's ROE today.
财富趋势技术(SHSE:688318)最近一个月股价下跌16%。但是,如果你仔细观察,你可能会发现其强健的财务状况可能意味着该股票在长期内可能会看到价值上涨,因为市场通常会奖励那些财务状况良好的公司。特别地,我们将关注财富趋势技术的ROE指标。
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 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 Shenzhen Fortune Trend technology is:
因此,根据上述公式,深圳财富趋势科技的ROE为:
8.7% = CN¥305m ÷ CN¥3.5b (Based on the trailing twelve months to March 2024).
8.7% = CN¥3,0500万 ÷ CN¥35亿(截至2024年3月)。
The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.09 in profit.
‘回报’是指公司过去一年的收益。一个概念化的方式是,对于每加元股东的资本,该公司就会获得0.09元的利润。
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。
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. 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.
我们已经确定roe对于公司未来收益的有效衡量工具。根据公司再投资或“留存”这些利润的程度及其有效性,我们随后可以评估公司的收益增长潜力。一般而言,其他条件相同的情况下,roe和利润留存率较高的公司比不具备这些属性的公司具有更高的增长率。
Shenzhen Fortune Trend technology's Earnings Growth And 8.7% ROE
财富趋势技术的盈利增长和8.7%的ROE
When you first look at it, Shenzhen Fortune Trend technology's ROE doesn't look that attractive. However, the fact that the its ROE is quite higher to the industry average of 4.1% doesn't go unnoticed by us. Yet, Shenzhen Fortune Trend technology has posted measly growth of 4.1% over the past five years. Remember, the company's ROE is quite low to begin with, just that it is higher than the industry average. Hence, this goes some way in explaining the low earnings growth.
起初看来,财富趋势技术的ROE不太有吸引力。然而,它的ROE比行业平均值4.1%高得多,这一点没有被我们忽视。但是,在过去的五年中,财富趋势技术的增长率仅为4.1%。请记住,该公司的ROE本来就很低,只是高于行业平均水平。因此,这在一定程度上可以解释为什么盈利增长低。
Next, on comparing with the industry net income growth, we found that the growth figure reported by Shenzhen Fortune Trend technology compares quite favourably to the industry average, which shows a decline of 3.6% over the last few years.
其次,通过与行业净收入增长进行比较,我们发现财富趋势技术报道的增长数字与行业平均水平相比相当有优势,后者在过去几年中下降了3.6%。
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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. If you're wondering about Shenzhen Fortune Trend technology's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
衡量公司价值的基础在很大程度上与其盈利增长相结合。投资者了解市场是否已经定价公司预期的盈利增长(或下降)是非常重要的。这样一来,他们将知道股票是走向清澈的蓝水还是等待在沼泽水中。如果你想知道财富趋势技术的估值,请查看其市盈率的标尺,以与其行业进行比较。
Is Shenzhen Fortune Trend technology Making Efficient Use Of Its Profits?
深圳财富趋势技术是否有效利用其利润?
Despite having a normal three-year median payout ratio of 33% (or a retention ratio of 67% over the past three years, Shenzhen Fortune Trend technology has seen very little growth in earnings as we saw above. So there could be some other explanation in that regard. For instance, the company's business may be deteriorating.
尽管财富趋势技术有一个正常的三年中位数支付比率为33%(或过去三年的留存比率为67%),就像我们上面看到的那样,财富趋势技术的盈利增长却非常少。因此,在这方面可能会有其他解释。例如,公司的业务可能正在恶化。
Additionally, Shenzhen Fortune Trend technology has paid dividends over a period of four years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth.
此外,财富趋势技术在四年的时间里支付了分红,这意味着即使几乎没有盈利增长,公司管理层也决心支付分红。
Conclusion
结论
Overall, we are quite pleased with Shenzhen Fortune Trend technology's performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. 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 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,我们对财富趋势技术的表现非常满意。特别是值得一提的是,看到该公司的盈利显著增长,支持着可观的ROE和高投资回报率是非常不错的。尽管如此,通过查看目前的分析师预期,我们发现该公司的盈利预计将获得发展势头。若想了解更多关于该公司将来盈利增长预测的信息,请查看分析师对公司的预测的免费报告。
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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
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。