Are Strong Financial Prospects The Force That Is Driving The Momentum In Suzhou Dongshan Precision Manufacturing Co., Ltd.'s SZSE:002384) Stock?
Are Strong Financial Prospects The Force That Is Driving The Momentum In Suzhou Dongshan Precision Manufacturing Co., Ltd.'s SZSE:002384) Stock?
Suzhou Dongshan Precision Manufacturing's (SZSE:002384) stock is up by a considerable 74% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. In this article, we decided to focus on Suzhou Dongshan Precision Manufacturing's ROE.
苏州东山精密制造(中证:002384)的股票在过去三个月内大幅上涨了74%。鉴于该公司的出色表现,我们决定更加密切地研究其财务指标,因为一家公司长期的财务状况通常决定了市场的结果。在本文中,我们决定关注苏州东山精密制造的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. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE或股东权益报酬率是一种有用的工具,用于评估一家公司能否有效地利用来自股东的投资产生回报。换句话说,它揭示了公司将股东的投资变成利润的成功程度。
How Do You Calculate Return On Equity?
怎样计算ROE?
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 Suzhou Dongshan Precision Manufacturing is:
因此,根据上述公式,苏州东山精密制造的roe为:
9.7% = CN¥1.8b ÷ CN¥18b (Based on the trailing twelve months to March 2024).
9.7% = CN¥18亿 ÷ CN¥180亿(基于过去12个月至2024年3月)。
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¥0.10 in profit.
'回报率'是年度利润。另一种思考方式是,对于每一元人民币的净资产,公司能够赚取0.10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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
我们已经确认roe是一个有效的盈利指标,用于衡量公司未来的盈利能力。现在我们需要评估公司为未来增长重新投资或“保留”的利润有多少,这将给我们提供有关公司增长潜力的想法。假设其他一切相等,具有更高回报率和更高盈利保留的公司通常比没有同样特点的公司具有更高的增长率。
A Side By Side comparison of Suzhou Dongshan Precision Manufacturing's Earnings Growth And 9.7% ROE
苏州东山精密制造收益增长和9.7%的roe的并排比较
When you first look at it, Suzhou Dongshan Precision Manufacturing's ROE doesn't look that attractive. However, the fact that the its ROE is quite higher to the industry average of 6.3% doesn't go unnoticed by us. Even more so after seeing Suzhou Dongshan Precision Manufacturing's exceptional 21% net income growth over the past five years. That being said, the company does have a slightly low ROE to begin with, just that it is higher than the industry average. So, there might well be other reasons for the earnings to grow. E.g the company has a low payout ratio or could belong to a high growth industry.
当您第一次看到时,苏州东山精密制造的roe看起来并不那么吸引人。然而,该公司的roe相当高,高于行业平均水平6.3%,这一点我们是不会忽视的。更重要的是,看到苏州东山精密制造在过去五年中出色的21%的净利润增长后,我们会更加关注。也就是说,该公司的roe起点略低,只是比行业平均水平高一些。因此,营收增长可能存在其他原因,例如低的派息比率或属于高增长行业。
Next, on comparing with the industry net income growth, we found that Suzhou Dongshan Precision Manufacturing's growth is quite high when compared to the industry average growth of 6.4% in the same period, which is great to see.
接下来,我们将苏州东山精密制造的净利润增长与行业平均增长率6.4%作比较,发现其增长相当高,这是非常好的。
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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. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Suzhou Dongshan Precision Manufacturing's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
对公司附加价值的基础在很大程度上与其收益增长有关。投资者需要判断预期的收益增长或缺乏收益增长是否已经反映在股票价格中。这有助于他们确定股票是面临光明还是黯淡的未来。如果您想了解苏州东山精密制造的估值,请查看其市盈率的该标尺,与其行业做比较。
Is Suzhou Dongshan Precision Manufacturing Efficiently Re-investing Its Profits?
苏州东山精密制造是否高效地再投资了其利润?
Suzhou Dongshan Precision Manufacturing's ' three-year median payout ratio is on the lower side at 11% implying that it is retaining a higher percentage (89%) of its profits. So it looks like Suzhou Dongshan Precision Manufacturing is reinvesting profits heavily to grow its business, which shows in its earnings growth.
苏州东山精密制造的三年中位数派息比率偏低,为11%,表明其留存了高比例(89%)的利润。所以看起来苏州东山精密制造在大力再投资以发展业务,这表现在它的收益增长上。
Besides, Suzhou Dongshan Precision Manufacturing has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 14% over the next three years. Regardless, the future ROE for Suzhou Dongshan Precision Manufacturing is speculated to rise to 14% despite the anticipated increase in the payout ratio. There could probably be other factors that could be driving the future growth in the ROE.
此外,苏州东山精密制造已经连续十年或更长时间支付分红派息。这表明该公司致力于与其股东分享利润。在研究最新的分析师共识数据后,我们发现该公司未来的派息比率预计将在未来三年内上升至14%。无论如何,尽管派息比率预计将增加,苏州东山精密制造的未来roe有望升至14%。可能存在其他因素推动roe未来的增长。
Conclusion
结论
Overall, we are quite pleased with Suzhou Dongshan Precision Manufacturing'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. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. 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,我们对苏州东山精密制造的表现感到非常满意。特别是,看到公司的收益显著增长,得益于可观的roe和高的再投资率,这令人欣慰。我们还研究了最新的分析师预测,并发现该公司的收益增长预计与其当前的增长率相当。要了解有关该公司未来收益增长预测的更多信息,请查看有关该公司的分析师预测的免费报告。
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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。