Hubei Yihua Chemical Industry (SZSE:000422) May Have Issues Allocating Its Capital
Hubei Yihua Chemical Industry (SZSE:000422) May Have Issues Allocating Its Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating Hubei Yihua Chemical Industry (SZSE:000422), we don't think it's current trends fit the mold of a multi-bagger.
如何寻找长期价值将会成倍增长的股票？通常，我们需要注意ROCE不断增长的趋势，同时伴随着投入资本的基数不断扩大。若是这样的话，这意味着这是一个伟大的商业模式，并且在利润可持续再投资的机会上有充足的回报。然而，对于湖北宜化（SZSE：000422），我们在调查后发现，它目前的反馈不符合成倍增长的标准。
Return On Capital Employed (ROCE): What Is It?
资本雇用回报率（ROCE）是什么？
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Hubei Yihua Chemical Industry, this is the formula:
对于不知道ROCE是什么的人，它是一种衡量公司从投入资本中可以获得多少税前利润的指标。计算湖北宜化ROCE所用的公式为：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
资产雇用回报率（ROCE）是指企业利润，即企业税前利润除以企业投入的总资本（负债加股权）。如果ROCE高于企业财务成本的承受能力，那么企业就会创造出更多的价值。
0.05 = CN¥661m ÷ (CN¥22b - CN¥9.2b) (Based on the trailing twelve months to March 2024).
0.05 = CN¥66100万 ÷ (CN¥220亿 - CN¥9.2b)（基于截至2024年3月的过去12个月）。
Therefore, Hubei Yihua Chemical Industry has an ROCE of 5.0%. Even though it's in line with the industry average of 5.5%, it's still a low return by itself.
因此，湖北宜化的ROCE为5.0%。尽管它与5.5%的行业平均水平相当，但仍然是一种较低的回报。
Above you can see how the current ROCE for Hubei Yihua Chemical Industry compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Hubei Yihua Chemical Industry for free.
上面你可以看到湖北宜化目前的ROCE与之前的资本回报率相比有何不同，但是从过去中我们只能得到有限的信息。如果您愿意，您可以免费查看覆盖湖北宜化的分析师的预测。
What Can We Tell From Hubei Yihua Chemical Industry's ROCE Trend?
我们能从湖北宜化的ROCE趋势中看到什么？
The trend of ROCE doesn't look fantastic because it's fallen from 30% five years ago, while the business's capital employed increased by 167%. However, some of the increase in capital employed could be attributed to the recent capital raising that's been completed prior to their latest reporting period, so keep that in mind when looking at the ROCE decrease. It's unlikely that all of the funds raised have been put to work yet, so as a consequence Hubei Yihua Chemical Industry might not have received a full period of earnings contribution from it.
ROCE的趋势看起来并不理想，因为它已经从五年前的30%下降到现在，同时公司的资本投入增长了167%。然而，某些资本投入的增加可以归功于最近在其最新报告期前完成的融资，因此在看到ROCE下降时要牢记这一点。它不太可能将所有筹集的资金都投入使用，因此，湖北宜化可能没有从中获得全部的收益贡献。
On a related note, Hubei Yihua Chemical Industry has decreased its current liabilities to 41% of total assets. So we could link some of this to the decrease in ROCE. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE. Either way, they're still at a pretty high level, so we'd like to see them fall further if possible.
与此相关的是，湖北宜化已经将其流动负债降至总资产的41%。因此，我们可以将这其中的一部分归因于ROCE的下降。实际上，这意味着他们的供应商或短期债权人资金支持了更少的业务，从而减少了一些风险元素。由于该公司基本上是用自己的资金为其运营提供资金，因此您可以认为这使得公司在产生ROCE方面效率降低了。无论如何，他们的ROCE仍然处于相当高的水平，所以如果可能的话，我们希望看到它们进一步下降。
In Conclusion...
最后，同等资本下回报率较低的趋势通常不是我们关注创业板股票的最佳信号。由于这些发展进行良好，因此投资者不太可能表现友好。自五年前以来，该股下跌了32%。除非这些指标朝着更积极的轨迹转变，否则我们将继续寻找其他股票。
We're a bit apprehensive about Hubei Yihua Chemical Industry because despite more capital being deployed in the business, returns on that capital and sales have both fallen. Since the stock has skyrocketed 301% over the last five years, it looks like investors have high expectations of the stock. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.
我们有些担忧湖北宜化，因为尽管公司投入了更多的资本，但资本回报和销售额却都下降了。由于过去五年里股票飙升了301%，看起来投资者对该股票的预期很高。无论如何，当前的一些趋势对于长期表现并不理想，所以除非这些趋势逆转，否则我们应该寻找其他的投资标的。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 5 warning signs for Hubei Yihua Chemical Industry (of which 1 is potentially serious!) that you should know about.
由于几乎所有的公司都面临着一些风险，因此了解它们的风险很有价值。我们已经注意到湖北宜化有5个警告信号（其中一个可能是严重的！）需要您了解。
While Hubei Yihua Chemical Industry isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
尽管湖北宜化的回报率并不是最高的，但请查看此处的免费公司列表，这些公司在平衡表方面具有高回报率。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
对本文有任何反馈？对内容有任何疑虑？请直接与我们联系。或者，发送电子邮件至editorial-team@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
对本文有任何反馈？对内容有任何疑虑？请直接与我们联系。或者，发送电子邮件至editorial-team@simplywallst.com。