Is Ningbo Cixing Co.,Ltd.'s (SZSE:300307) Recent Stock Performance Tethered To Its Strong Fundamentals?
Is Ningbo Cixing Co.,Ltd.'s (SZSE:300307) Recent Stock Performance Tethered To Its Strong Fundamentals?
Ningbo CixingLtd (SZSE:300307) has had a great run on the share market with its stock up by a significant 8.9% over the last week. 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 Ningbo CixingLtd's ROE.
宁波中兴股份有限公司（SZSE:300307）的股票在过去一周里大涨高达8.9％。鉴于公司的出色表现，我们决定更加密切地研究其财务指标，因为公司的长远财务状况通常决定着市场走向。在本文中，我们决定关注宁波中兴股份有限公司的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. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe，即净资产收益率，是一种评估公司如何有效地从股东手中获取投资回报的有用工具。换句话说，它是一种盈利能力比率，衡量公司股东提供的资本的回报率。
How Is ROE Calculated?
净资产收益率怎么计算？
ROE can be calculated by using the formula:
净资产收益率可以使用以下公式进行计算：
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 Ningbo CixingLtd is:
因此，根据上述公式，宁波中兴股份有限公司的ROE为：
10% = CN¥323m ÷ CN¥3.2b (Based on the trailing twelve months to March 2024).
10％= CN¥32300万 ÷ CN¥32亿（截至2024年3月的过去12个月）。
The 'return' is the income the business earned over the last year. 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’是企业在过去一年中赚取的收入。另一种思考方式是，对于每1元的权益，该公司能够赚取0.10元的利润。
Why Is ROE Important For Earnings Growth?
ROE为什么对净利润增长很重要？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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.
到目前为止，我们已经知道ROE测量公司如何高效地生成利润。基于公司选择重新投资或“保留”其利润的比例，我们能够评估公司未来生成利润的能力。假设其他所有因素保持不变，则ROE和利润保留率越高，公司的增长率也越高，与不一定具备这些特征的公司相比。
A Side By Side comparison of Ningbo CixingLtd's Earnings Growth And 10% ROE
宁波中兴股份有限公司盈利增长与10％ROE的并排比较
At first glance, Ningbo CixingLtd's ROE doesn't look very promising. Although a closer study shows that the company's ROE is higher than the industry average of 6.9% which we definitely can't overlook. Especially when you consider Ningbo CixingLtd's exceptional 46% net income growth over the past five years. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. Hence, there might be some other aspects that are causing earnings to grow. For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.
乍一看，宁波中兴股份有限公司的ROE似乎并不十分令人期待。然而，仔细研究显示，公司的ROE高于行业平均水平6.9％，这是我们绝不能忽视的。特别是考虑到宁波中兴股份有限公司过去五年卓越的46％净利润增长。请记住，公司的ROE虽然有些不高，但是行业ROE更低，因此可能会出现其他导致收益增长的因素。例如，可能是整个行业处于高速增长阶段，或者公司的派息比例较低。
We then compared Ningbo CixingLtd's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 9.5% in the same 5-year period.
然后，我们将宁波中兴股份有限公司的净利润增长与行业进行了比较，并且很高兴地看到，在同一5年期内，公司的增长率比行业的9.5％更高。
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. Is Ningbo CixingLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增长是考虑股票估值时的一个重要指标。投资者应设法确定即将发生的盈利增长或下滑（无论哪种情况）是否已经反映在股价中。然后，这有助于他们判断股票未来是光明还是暗淡。宁波中兴股份有限公司与其他公司相比是否定价合理？这3个估值指标可以帮助您做出决定。
Is Ningbo CixingLtd Making Efficient Use Of Its Profits?
宁波中兴股份有限公司是否有效利用其利润？
Ningbo CixingLtd doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above.
宁波中兴股份有限公司目前没有支付常规股息，这意味着它一直在将其所有利润重新投资于业务中。这无疑有助于上述高盈利增长数字的实现。
Summary
总的来说，我们对伟明环保的表现非常满意。具体而言，我们喜欢公司以高回报率再投资了其利润的很大一部分。当然，这导致公司的收益大幅增长。但是，最新的行业分析师预测表明，该公司的收益预计将加速增长。
Overall, we are quite pleased with Ningbo CixingLtd's performance. Particularly, we like that the company is reinvesting heavily into its business at a moderate rate of return. Unsurprisingly, this has led to an impressive earnings growth.
总的来说，我们非常满意宁波中兴股份有限公司的表现。特别是公司以适度的回报较大力度地将资本重新投资于业务中。不出所料，这导致了令人印象深刻的盈利增长。
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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。