Are Robust Financials Driving The Recent Rally In Chongqing Port Co.,Ltd.'s (SHSE:600279) Stock?
Are Robust Financials Driving The Recent Rally In Chongqing Port Co.,Ltd.'s (SHSE:600279) Stock?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity Chongqing PortLtd's (SHSE:600279) stock is up by a considerable 52% over the past three months. 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. Specifically, we decided to study Chongqing PortLtd's ROE in this article.
重庆港口有限公司（SHSE:600279）的股票在过去三个月上涨了相当可观的52%。鉴于公司表现出色，我们决定更仔细地研究其财务指标，因为公司的长期财务健康通常会决定市场结果。具体来说，我们决定在本文中研究重庆港口有限公司的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. 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）是衡量公司增值和管理投资者资金有效性的测试。换句话说，它是一种盈利能力比率，用于衡量公司股东提供的资金回报率。
How To Calculate Return On Equity?
如何计算股东权益报酬率？
The formula for return on equity is:
权益回报率的计算公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润（来自持续经营） ÷ 股东权益
So, based on the above formula, the ROE for Chongqing PortLtd is:
因此，根据上述公式，重庆港口有限公司的roe为：
13% = CN¥1.0b ÷ CN¥7.9b (Based on the trailing twelve months to September 2024).
13% = CN¥10亿 ÷ CN¥79亿（基于截至2024年9月的过去十二个月）。
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.13 in profit.
“回报”是过去12个月的利润。这意味着对于每一元股东权益价值，该公司产生了0.13元利润。
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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
Chongqing PortLtd's Earnings Growth And 13% ROE
重庆港有限公司的盈利增长和13% roe
To begin with, Chongqing PortLtd seems to have a respectable ROE. Especially when compared to the industry average of 6.3% the company's ROE looks pretty impressive. Probably as a result of this, Chongqing PortLtd was able to see an impressive net income growth of 43% over the last five years. We reckon that there could also be other factors at play here. 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.
首先，重庆港有限公司似乎拥有相当可观的 roe。尤其是与行业平均水平6.3%相比，该公司的 roe显得相当出色。可能正因为如此，重庆港有限公司在过去五年中实现了净利润增长43%的令人印象深刻的成绩。我们认为，这里可能还有其他因素在起作用。例如，公司管理层可能做出了一些良好的战略决策，或者该公司的分红派息比例较低。
As a next step, we compared Chongqing PortLtd's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 6.2%.
接下来，我们比较了重庆港有限公司的净利润增长与行业的情况，让人高兴的是，我们发现该公司的增长高于行业平均增长6.2%。
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. This then helps them determine if the stock is placed for a bright or bleak future. Is Chongqing PortLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增长是股票估值的一个重要因素。投资者应该努力判断预期的盈利增长或下降，无论是哪种情况，是否已被定价。这样有助于他们判断股票是能迎来光明还是阴暗的未来。重庆港有限公司与其他公司相比，是否被合理定价？这三个估值指标可能会帮助您做出决定。
Is Chongqing PortLtd Using Its Retained Earnings Effectively?
重庆港有限公司有效利用其留存收益吗？
Chongqing PortLtd's three-year median payout ratio is a pretty moderate 32%, meaning the company retains 68% of its income. By the looks of it, the dividend is well covered and Chongqing PortLtd is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
重庆港有限公司的三年中位派息比率为相对适中的32%，这意味着公司保留了68%的收入。从表面上看，分红得到了很好的保障，重庆港有限公司正在有效地再投资其利润，这从我们之前讨论的卓越增长中可见一斑。
Additionally, Chongqing PortLtd has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.
此外，重庆港有限公司已在至少十年的时间里支付分红，这意味着公司非常认真地与股东分享其利润。
Conclusion
结论
On the whole, we feel that Chongqing PortLtd's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business. Our risks dashboard would have the 2 risks we have identified for Chongqing PortLtd.
总体来说，我们认为重庆港务有限公司的表现相当不错。具体来说，我们喜欢这家公司以高回报率重新投资了大量利润。这当然使得公司在盈利上得到了显著增长。如果公司继续以目前的方式增长盈利，将对其股价产生积极影响，因为每股盈利会影响长期股价。更不用说，股价的结果还依赖于公司可能面临的潜在风险。因此，投资者需要意识到业务中涉及的风险。我们的风险特斯拉-仪表中列出了我们为重庆港务有限公司识别的两个风险。
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