Wondershare Technology Group Co., Ltd.'s (SZSE:300624) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
Wondershare Technology Group Co., Ltd.'s (SZSE:300624) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
Wondershare Technology Group (SZSE:300624) has had a rough three months with its share price down 26%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to Wondershare Technology Group's ROE today.
万兴科技集团(SZSE:300624)在过去的三个月中,其股价下跌了26%。然而,该公司的基本面看起来相当不错,长期财务状况通常与未来市场价格运动保持一致。今天,我们特别将关注万兴科技集团的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. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
净资产收益率(roe)是衡量公司经营管理层如何有效利用公司资本的关键指标。换言之,它是一种利润率,衡量由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?
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 Wondershare Technology Group is:
所以,根据上述公式,万兴科技集团的roe为:
7.8% = CN¥111m ÷ CN¥1.4b (Based on the trailing twelve months to March 2024).
7.8% = CN¥11100万 ÷ CN¥14亿(基于截至2024年3月的过去十二个月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.08 in profit.
“回报”是业务在过去一年中获得的收入。其中一种概念化的方法是,对于每CN ¥1的股东资本,公司获利CN ¥0.08。
Why Is ROE Important For Earnings Growth?
ROE为什么对净利润增长很重要?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我们已经确定ROE作为一个高效的盈利规模可以评估公司未来的收益。根据公司选择再投资或保留多少利润,我们可以评估公司未来盈利的能力。假设其他所有条件均保持不变,ROE和利润留存率越高,相对于没有这些特点的公司,公司的增长率就越高。
A Side By Side comparison of Wondershare Technology Group's Earnings Growth And 7.8% ROE
万兴科技集团盈利增长和7.8%的roe的并列比较
When you first look at it, Wondershare Technology Group's ROE doesn't look that attractive. However, the fact that the its ROE is quite higher to the industry average of 4.2% doesn't go unnoticed by us. But seeing Wondershare Technology Group's five year net income decline of 13% over the past five years, we might rethink that. Bear in mind, the company does have a slightly low ROE. It is just that the industry ROE is lower. Hence, this goes some way in explaining the shrinking earnings.
起初,万兴科技集团的roe看起来并不那么吸引人。然而,它的roe相当高于行业平均水平4.2%,这一点我们没有忽视。但是,考虑到过去五年万兴科技集团的净利润下降了13%,我们可能需要重新考虑。请记住,该公司的roe略低。只是行业的roe更低。这在一定程度上有助于解释收缩的收益。
As a next step, we compared Wondershare Technology Group's performance with the industry and found thatWondershare Technology Group's performance is depressing even when compared with the industry, which has shrunk its earnings at a rate of 3.6% in the same period, which is a slower than the company.
作为下一步,我们将万兴科技集团的表现与行业进行了比较,发现即使与收缩了3.6%收益的行业相比,万兴科技集团的表现令人沮丧,而且其增长速度还要慢些。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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 Wondershare Technology Group fairly valued compared to other companies? These 3 valuation measures might help you decide.
赋予公司价值的基础很大程度上与其盈利增长相关。投资者应该设法确定预期的盈利增长或下降是否已经定价。然后,这有助于他们判断这支股票是否前景光明还是黯淡无光。与其他公司相比,万兴科技集团是否定价合理?这3个估值指标可能会帮助您决定。
Is Wondershare Technology Group Making Efficient Use Of Its Profits?
万兴科技集团是否有效利用其利润?
When we piece together Wondershare Technology Group's low three-year median payout ratio of 21% (where it is retaining 79% of its profits), calculated for the last three-year period, we are puzzled by the lack of growth. The low payout should mean that the company is retaining most of its earnings and consequently, should see some growth. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
当我们结合万兴科技集团过去三年的中位数低达21%的股利支付比率(保留了其79%的利润),针对过去三年的计算,我们对缺乏增长感到困惑。低支付比率应该意味着公司保留了大部分利润,因此应该看到一些增长。看起来可能有一些其他原因可以解释缺乏增长,例如业务可能正在下滑。
Additionally, Wondershare Technology Group has paid dividends over a period of six years, which means that the company's management is rather focused on keeping up its dividend payments, regardless of the shrinking earnings. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 10% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 11%, over the same period.
此外,万兴科技集团已经连续六年支付股息,这意味着公司管理层专注于保持其股息支付,而不管收益的萎缩。在研究最新的分析师共识数据时,我们发现,在未来三年中,该公司的股息支付比率预计将下降到10%。因此,预计股息支付比率的下降说明了相同期间该公司roe的预期增加到11%。
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。
On the whole, we do feel that Wondershare Technology Group has some positive attributes. Yet, the low earnings growth is a bit concerning, especially given that the company has a respectable rate of return and is reinvesting a huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总的来说,我们确实认为万兴科技集团具有一些积极的特征,但收益增长较低令人有些担忧,尤其是考虑到该公司具有可观的回报率,并将其利润的大部分再投资于业务中。看起来,可能有一些其他因素,不一定在业务的控制之内,阻碍了增长。但是,看着目前的分析师预测,我们发现该公司的盈利增长率预计会出现巨大的改善。要了解有关该公司的最新分析师预测的更多信息,请查看此分析师预测的可视化报告。
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