China Telecom Corporation Limited's (HKG:728) Stock Has Shown A Decent Performance: Have Financials A Role To Play?
China Telecom Corporation Limited's (HKG:728) Stock Has Shown A Decent Performance: Have Financials A Role To Play?
China Telecom's (HKG:728) stock up by 6.5% over the past three months. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Specifically, we decided to study China Telecom's ROE in this article.
中国电信(HKG: 728)的股价在过去三个月上涨了6.5%。 众所周知,长期的基本面与市场价格走势有着密切的关联,因此我们决定今天看一下该公司的关键财务指标,以判断它们是否在最近的股价变动中起到了作用。 具体来说,我们决定在本文中研究中国电信的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. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE(净资产收益率)是股东需考虑的一个重要因素,因为它告诉他们资本被有效地再投资的效果如何。换句话说,它揭示了公司将股东的投资转化为利润的成功程度。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
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 China Telecom is:
所以,根据上述公式,中国电信的roe为:
7.0% = CN¥32b ÷ CN¥461b (Based on the trailing twelve months to June 2024).
7.0% = 320亿人民币 ÷ 4610亿人民币(截至2024年6月的最近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 HK$1 worth of equity, the company was able to earn HK$0.07 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,对于每一港元的股权,公司能够赚取港币0.07的利润。
What Is The Relationship Between ROE And Earnings Growth?
ROE与盈利增长之间的关系是什么?
So far, we've learned that ROE is a measure of a company's profitability. 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 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是衡量公司盈利能力的一个指标。基于公司选择重新投资或“留存”的利润比例,我们可以评估公司未来产生利润的能力。其他因素相等的情况下,roe和利润留存率都较高的公司通常比没有这些特征的公司增长率更高。
A Side By Side comparison of China Telecom's Earnings Growth And 7.0% ROE
中国电信盈利增长和7.0%的roe进行了并列比较
At first glance, China Telecom's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 6.3%, we may spare it some thought. Having said that, China Telecom has shown a modest net income growth of 10.0% over the past five years. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
乍一看,中国电信的roe看起来并不令人期待。然而,考虑到公司roe与行业平均roe 6.3%相似,我们可能要多想一下。鉴于此,中国电信在过去五年里显示了10.0%的净利润增长率。考虑到roe并不特别高,我们认为也可能有其他因素影响了公司的增长。例如,公司管理层可能做出了一些良好的战略决策,或者公司的派息比率较低。
Next, on comparing with the industry net income growth, we found that China Telecom's growth is quite high when compared to the industry average growth of 7.2% in the same period, which is great to see.
接下来,与行业净利润增长进行比较,我们发现中国电信的增长相当高,与同期行业平均增长率7.2%相比,这是非常好的。
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Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about China Telecom's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增长是股票估值的一个重要因素。投资者应该努力确定预期的盈利增长或下滑是否已经定价。通过这样做,他们可以了解股票是否朝着明朗的前景发展,还是会遇到泥泞的境地。如果你想了解中国电信的估值情况,请查看其市盈率与行业相比的比例。
Is China Telecom Using Its Retained Earnings Effectively?
中国电信是否有效利用其留存利润?
While China Telecom has a three-year median payout ratio of 66% (which means it retains 34% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow.
虽然中国电信过去三年的中位数股息支付比率为66%(这意味着它留存了34%的利润),但公司的盈利增长仍然颇为可观,这意味着其高股息支付比率并未影响其增长能力。
Moreover, China Telecom 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. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 77%. Accordingly, forecasts suggest that China Telecom's future ROE will be 8.4% which is again, similar to the current ROE.
此外,中国电信决心继续与股东分享利润,我们可以从其连续十年发放股息的历史得出这个推断。根据最新的分析师预测,我们发现公司未来三年的股息支付比率预计将保持稳定在77%。因此,预测显示中国电信未来的ROE将为8.4%,与当前的ROE相似。
Conclusion
结论
In total, it does look like China Telecom has some positive aspects to its business. That is, quite an impressive growth in earnings. However, the low profit retention means that the company's earnings growth could have been higher, had it been reinvesting a higher portion of its profits. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
总体来说,中国电信的业务还是有一些积极的方面的。也就是说,净利润增长相当可观。不过,低利润保留意味着如果公司将更高比例的利润进行再投资,其利润增长可能会更高。正因如此,对最新的分析师预测的研究表明,预计该公司未来的利润增长将放缓。这些分析师的预期是基于行业的广泛预期,还是基于公司的基本面?点击这里前往我们公司的分析师预测页面。
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