Is Zhejiang Medicine Co., Ltd.'s (SHSE:600216) Recent Price Movement Underpinned By Its Weak Fundamentals?
Is Zhejiang Medicine Co., Ltd.'s (SHSE:600216) Recent Price Movement Underpinned By Its Weak Fundamentals?
Zhejiang Medicine (SHSE:600216) has had a rough month with its share price down 6.5%. It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Fundamentals usually dictate market outcomes so it makes sense to study the company's financials. Particularly, we will be paying attention to Zhejiang Medicine's ROE today.
浙江医药(SHSE:600216)在过去一个月的表现不佳,股价下跌了6.5%。市场可能忽视了公司的不同财务数据,选择迎合负面情绪。基本面通常决定市场结果,因此研究公司的财务状况是有意义的。特别是,我们今天将关注浙江医药的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.
股本回报率或ROE是股东需要考虑的重要因素,因为它告诉他们自己的资本是如何有效地被再投资的。简单来说,它衡量的是公司相对于股东权益的盈利能力。
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
股东权益回报率 = 净利润(来自持续运营)÷ 股东权益
So, based on the above formula, the ROE for Zhejiang Medicine is:
因此,基于上述公式,浙江医药的ROE为:
8.1% = CN¥854m ÷ CN¥11b (Based on the trailing twelve months to September 2024).
8.1% = CN¥85400万 ÷ CN¥110亿(基于截至2024年9月的过去十二个月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.08 in profit.
“回报”是过去十二个月在税后赚取的金额。 另一种理解方式是,公司的每1元股本能够赚取0.08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. 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.
到目前为止,我们了解到ROE衡量的是公司产生利润的效率。根据公司将这些利润再投资或“保留”的多少,以及其效率,我们能够评估公司的盈利增长潜力。一般来说,在其他条件相同的情况下,具有高股本回报率和利润保留的公司,其增长率高于没有这些特征的公司。
A Side By Side comparison of Zhejiang Medicine's Earnings Growth And 8.1% ROE
浙江医药收益增长与8.1% ROE的对比
At first glance, Zhejiang Medicine's ROE doesn't look very promising. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.7%. Having said that, Zhejiang Medicine has shown a meagre net income growth of 2.7% over the past five years. Remember, the company's ROE is not particularly great to begin with. Hence, this does provide some context to low earnings growth seen by the company.
乍一看,浙江医药的ROE似乎并不太有前景。然而,进一步研究显示该公司的ROE与行业平均水平7.7%相似。尽管如此,浙江医药在过去五年中净利润增长仅有2.7%。请记住,该公司的ROE本身也不是特别出色。因此,这提供了一些关于公司低收益增长的背景。
Next, on comparing with the industry net income growth, we found that Zhejiang Medicine's reported growth was lower than the industry growth of 9.1% over the last few years, which is not something we like to see.
接下来,在与行业净利润增长进行比较时,我们发现浙江医药报告的增长低于过去几年的行业增长9.1%,这并不是我们希望看到的。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Zhejiang Medicine's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
为一家公司赋值的基础在很大程度上与其盈利增长有关。 投资者需要判断的接下来是预期的盈利增长,或者没有增长,是否已经反映在股票价格中。 这样做将帮助他们确定该股票的未来是看好还是看衰。 如果你在想浙江医药的估值,请查看其市盈率与其行业的比较。
Is Zhejiang Medicine Making Efficient Use Of Its Profits?
浙江医药是否有效利用其利润?
Despite having a moderate three-year median payout ratio of 34% (implying that the company retains the remaining 66% of its income), Zhejiang Medicine's earnings growth was quite low. So there could be some other explanation in that regard. For instance, the company's business may be deteriorating.
尽管浙江医药有着34%的中等三年中位支付比率(意味着公司保留其余的66%的收入),但其盈利增长非常低。因此,在这方面可能还有其他解释。例如,公司的业务可能正在下滑。
In addition, Zhejiang Medicine has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 13% over the next three years. The fact that the company's ROE is expected to rise to 12% over the same period is explained by the drop in the payout ratio.
此外,浙江医药在至少十年内一直在支付分红,这表明即使以牺牲业务增长为代价,保持分红支付对于管理层来说更为重要。 现有分析师的估计表明,预计公司未来的支付比率将在未来三年内降至13%。 公司ROE预计在同一时期内上升至12%的事实也可以通过支付比率的下降来解释。
Summary
总结
Overall, we have mixed feelings about Zhejiang Medicine. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. 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.
总体而言,我们对浙江医药的看法比较复杂。虽然该公司有较高的再投资率,但低ROE意味着所有的再投资并没有给投资者带来任何好处,而且还对盈利增长产生了负面影响。也就是说,最新的行业分析师预测显示该公司的盈利预计将加速。这些分析师的预期是基于行业的整体预期,还是基于公司的基本面?点击这里查看我们分析师对该公司的预测页面。
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这篇来自Simply Wall St的文章是一般性的。我们根据历史数据和分析师预测提供评论,采用无偏见的方法,我们的文章并不旨在提供财务建议。它不构成对任何股票的买入或卖出建议,也未考虑到您的目标或财务状况。我们旨在为您提供以基本数据驱动的长期分析。请注意,我们的分析可能未考虑最新的价格敏感公司公告或定性材料。Simply Wall St在提到的任何股票中均没有持仓。