China Baoan Group Co., Ltd.'s (SZSE:000009) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
China Baoan Group Co., Ltd.'s (SZSE:000009) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
With its stock down 22% over the past three months, it is easy to disregard China Baoan Group (SZSE:000009). But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study China Baoan Group's ROE in this article.
中国宝安(SZSE:000009)的股票在过去三个月中下跌了22%,易被忽略。但是,如果您关注一下,您可能会发现其关键的财务指标看起来相当不错,这可能意味着在长期市场通常奖励更强大的长期基本面的情况下,股票有可能潜在上涨。具体来说,我们决定在本文中研究中国宝安的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. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率或roe是一项关键指标,用于评估公司管理层使用公司资本的效率。换句话说,它揭示了公司将股东的投资转化为利润的成功。
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 China Baoan Group is:
因此,根据上述公式,中国宝安的roe为:
6.9% = CN¥1.5b ÷ CN¥21b (Based on the trailing twelve months to March 2024).
6.9%=CN¥15亿÷CN¥210亿(基于截至2024年3月的过去十二个月)。
The 'return' is the profit over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.07 in profit.
'收益'是过去十二个月的利润。另一种考虑方法是,对于每元人民币的股本净值,公司能够获得0.07元的利润。
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. 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,我们已经了解了ROE衡量公司产生利润的效率。现在,我们需要评估公司为未来增长“留存”的利润或“保留”多少,这就让我们对公司的增长潜力有了一个想法。一般来说,其他条件相同的情况下,ROE和利润保留较高的公司比没有这些属性的公司具有更高的增长率。
China Baoan Group's Earnings Growth And 6.9% ROE
中国宝安的盈利增长和6.9%的roe
On the face of it, China Baoan Group's ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 8.0%. Moreover, we are quite pleased to see that China Baoan Group's net income grew significantly at a rate of 23% over the last five years. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
从表面上看,中国宝安的roe并不值得一提。但是,更仔细的研究显示,公司的roe与8.0%的行业平均水平相似。此外,我们非常高兴地看到,中国宝安的净利润在过去五年中以23%的速度大幅增长。考虑到略低的roe,很可能会有一些其他促进此增长的因素。例如,公司的管理层可能做出了一些好的战略决策,或者公司的派息比率较低。
Next, on comparing with the industry net income growth, we found that China Baoan Group's growth is quite high when compared to the industry average growth of 14% in the same period, which is great to see.
接下来,比较行业净利润增长,我们发现与同期14%的行业平均增长相比,中国宝安的增长相当高,这是非常好的。
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Earnings growth is an important metric to consider when valuing a stock. 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. If you're wondering about China Baoan Group's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增长是估值一只股票时需要考虑的重要指标。投资者需要知道市场是否已经折价考虑公司的预期盈利增长(或下降)。这样做将帮助他们确定该股票的未来前景是否光明。如果您想了解中国宝安的估值,请查看其市盈率与同行业的比较。
Is China Baoan Group Making Efficient Use Of Its Profits?
中国宝安是否有效利用其利润?
China Baoan Group has a really low three-year median payout ratio of 8.8%, meaning that it has the remaining 91% left over to reinvest into its business. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.
中国宝安的三年中位数派息比率非常低,仅为8.8%,这意味着其还有其余91%的利润可用于再投资。这表明管理层正在重新投资大部分利润,这可从公司的增长中看出。
Additionally, China Baoan Group has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.
此外,中国宝安在至少十年的时间内支付股息,这意味着公司非常重视与股东分享利润。
Conclusion
结论
Overall, we feel that China Baoan Group certainly does have some positive factors to consider. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. You can see the 1 risk we have identified for China Baoan Group by visiting our risks dashboard for free on our platform here.
总的来说,我们认为中国宝安确实有一些要考虑的积极因素。尽管其回报率较低,但公司重新投资大部分利润来促进公司业绩的增长不容置疑。虽然我们不会完全忽视公司,但我们会尝试确定企业的风险程度,以做出更明智的决定。您可以通过访问我们的平台上的风险仪表板免费查看我们已经为中国宝安确定的风险。
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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 (at) simplywallst.com。
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。