Will Weakness in Tongwei Co.,Ltd's (SHSE:600438) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Tongwei Co.,Ltd's (SHSE:600438) Stock Prove Temporary Given Strong Fundamentals?
TongweiLtd (SHSE:600438) has had a rough three months with its share price down 18%. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. In this article, we decided to focus on TongweiLtd's ROE.
TongweiLtd(SHSE:600438)过去三个月表现不佳,股价下跌18%。不过,股票价格通常受到公司长期的财务表现推动,而在这种情况下表现相当有前途。在本文中,我们决定关注TongweiLtd的roe。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股东要考虑的关键因素之一是净资产收益率或roe,因为它告诉他们公司如何有效地重新投资他们的资本。简单点说,它衡量了公司与股东权益相关的盈利能力。
How Is ROE Calculated?
净资产收益率怎么计算?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算:
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 TongweiLtd is:
因此,根据上述公式,TongweiLtd的roe为:
9.1% = CN¥6.7b ÷ CN¥73b (Based on the trailing twelve months to March 2024).
9.1% = CN¥67亿 ÷ CN¥730亿(基于截至2024年3月的过去十二个月)。
The 'return' is the amount earned after tax over the last twelve months. 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”是税后收益的金额,在过去的十二个月中获得。一个概念化这个的方法是对于每个CN ¥1的股东资本,公司获得了CN ¥0.09的利润。
Why Is ROE Important For Earnings Growth?
ROE为什么对净利润增长很重要?
So far, we've learned that ROE is a measure of a company's profitability. 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. 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.
到目前为止,我们已经了解到roe是公司盈利能力的一种度量方法。根据公司再投资或“留存”利润的程度以及其有效性,我们随后能够评估公司的盈利增长潜力。假设其他所有因素相同,则具有更高净资产收益率和更高利润保留的公司通常比没有相同功能的公司增长率更高。
A Side By Side comparison of TongweiLtd's Earnings Growth And 9.1% ROE
TongweiLtd收益增长和9.1%的roe的并排比较
On the face of it, TongweiLtd's ROE is not much to talk about. However, the fact that the company's ROE is higher than the average industry ROE of 5.8%, is definitely interesting. Especially when you consider TongweiLtd's exceptional 42% 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. Therefore, the growth in earnings could also be the result of other factors. E.g the company has a low payout ratio or could belong to a high growth industry.
表面上看,TongweiLtd的roe并不值得一提。但事实上,该公司的roe高于5.8%的行业平均水平,这无疑是有趣的。特别是当考虑到TongweiLtd在过去五年中杰出的42%的净利润增长率时。话虽如此,该公司的roe有点低,只是高于行业平均水平而已。因此,收益增长也可能是其他因素的结果,例如该公司的派息率较低,或属于高增长的产业板块。
We then compared TongweiLtd'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 20% in the same 5-year period.
然后,我们将TongweiLtd的净利润增长与行业进行了比较,很高兴地看到,公司的增长率高于同一5年期间增长率为20%的行业。
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Earnings growth is a huge factor in stock valuation. 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. Is 600438 fairly valued? This infographic on the company's intrinsic value has everything you need to know.
盈利增长是股票估值的重要因素。投资者需要判断的下一步是,预期的盈利增长或缺乏盈利增长已经包含在股价中。这有助于他们判断股票的未来是光明还是暗淡。600438是否公平地估值?这张公司内在价值的信息图表包含了您需要知道的一切。
Is TongweiLtd Efficiently Re-investing Its Profits?
TongweiLtd是否有效地再投资其利润?
TongweiLtd's three-year median payout ratio is a pretty moderate 33%, meaning the company retains 67% of its income. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like TongweiLtd is reinvesting its earnings efficiently.
TongweiLtd的三年中位派息率相当适中,为33%,这意味着该公司保留了67%的收入。这表明其股息得到很好的覆盖,并且考虑到上述高增长,TongweiLtd看起来正在有效地再投资其利润。
Moreover, TongweiLtd is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 27% of its profits over the next three years. Still, forecasts suggest that TongweiLtd's future ROE will rise to 12% even though the the company's payout ratio is not expected to change by much.
此外,TongweiLtd决定继续与股东分享其利润,我们可以通过其至少十年的派息历史推断出这一点。经过对最新分析师一致预测数据的研究,我们发现公司预计在未来三年内仍将支付其利润的约27%。然而,预测表明,尽管公司的派息比例不会发生太大变化,但TongweiLtd未来的roe将会升至12%。
Conclusion
结论
On the whole, we feel that TongweiLtd's performance has been quite good. Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. 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,我们认为TongweiLtd表现相当不错。具体来说,我们喜欢它以适度的回报率再投资了高比例的利润,从而实现了收益增长。话虽如此,根据当前分析师的预测,该公司的盈利增长预计将放缓。要了解更多有关该公司未来盈利增长预测的信息,请查看分析师的预测。
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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。