Is Shanghai Mechanical & Electrical Industry Co.,Ltd.'s (SHSE:600835) Recent Price Movement Underpinned By Its Weak Fundamentals?
Is Shanghai Mechanical & Electrical Industry Co.,Ltd.'s (SHSE:600835) Recent Price Movement Underpinned By Its Weak Fundamentals?
With its stock down 19% over the past three months, it is easy to disregard Shanghai Mechanical & Electrical IndustryLtd (SHSE:600835). It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. In this article, we decided to focus on Shanghai Mechanical & Electrical IndustryLtd's ROE.
在過去的三個月裏，上海機電工業股份有限公司的股票下跌了19%，人們很容易忽視它(上海證券交易所代碼：600835)。市場可能忽視了該公司不同的財務狀況，決定向負面情緒傾斜。股票價格通常是由公司的長期財務表現推動的，因此我們決定更多地關注公司的財務表現。在本文中，我們決定將重點放在上海機電工業有限公司的淨資產收益率上。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
淨資產收益率，即股本回報率，是評估一家公司從股東那裏獲得投資回報的有效程度的有用工具。簡而言之，淨資產收益率顯示了每一美元相對於其股東投資產生的利潤。
See our latest analysis for Shanghai Mechanical & Electrical IndustryLtd
查看我們對上海機電實業有限公司的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for return on equity is:
這個股本回報率公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率=(持續經營的)淨利潤？股東權益
So, based on the above formula, the ROE for Shanghai Mechanical & Electrical IndustryLtd is:
因此，根據上述公式，上海機電工業股份有限公司的淨資產收益率為：
7.1% = CN¥1.1b ÷ CN¥15b (Based on the trailing twelve months to March 2022).
7.1%=CN元11億×CN元150億(以截至2022年3月的12個月為基礎)。
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¥0.07 in profit.
“收益”是過去12個月的利潤。這意味着，股東權益每增加1元，公司就會產生0.07元的利潤。
Why Is ROE Important For Earnings Growth?
為什麼淨資產收益率對收益增長很重要？
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 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.
到目前為止，我們瞭解到淨資產收益率是衡量一家公司盈利能力的指標。根據公司選擇再投資或“保留”多少利潤，我們就能夠評估一家公司未來產生利潤的能力。假設其他條件不變，淨資產收益率和利潤保留率越高，與不一定具有這些特徵的公司相比，公司的增長率就越高。
A Side By Side comparison of Shanghai Mechanical & Electrical IndustryLtd's Earnings Growth And 7.1% ROE
上海機電股份有限公司盈利增長與淨資產收益率7.1%的並列比較
When you first look at it, Shanghai Mechanical & Electrical IndustryLtd's ROE doesn't look that attractive. However, given that the company's ROE is similar to the average industry ROE of 8.2%, we may spare it some thought. Having said that, Shanghai Mechanical & Electrical IndustryLtd's five year net income decline rate was 8.5%. Bear in mind, the company does have a slightly low ROE. So that's what might be causing earnings growth to shrink.
乍一看，上海機電股份有限公司的淨資產收益率(ROE)看起來並不那麼吸引人。然而，鑑於該公司的淨資產收益率(ROE)與8.2%的行業平均ROE相似，我們或許可以省去一些思考。話雖如此，上海機電工業有限公司的五年淨收入降幅為8.5%。請記住，該公司的淨資產收益率確實略低。因此，這可能是導致收益增長放緩的原因。
That being said, we compared Shanghai Mechanical & Electrical IndustryLtd's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 13% in the same period.
話雖如此，我們將上海機電工業有限公司的表現與行業進行了比較，當我們發現該公司在同一時期盈利縮水時，該行業的盈利卻以13%的速度增長時，我們感到擔憂。
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. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Shanghai Mechanical & Electrical IndustryLtd is trading on a high P/E or a low P/E, relative to its industry.
盈利增長是股票估值的一個重要因素。投資者應該嘗試確定預期的收益增長或下降是否已計入價格，無論是哪種情況。這樣做將有助於他們確定該股的未來看起來是光明的還是不祥的。衡量預期收益增長的一個很好的指標是市盈率，它根據一隻股票的盈利前景決定市場願意為其支付的價格。因此，你可能想看看上海機電工業股份有限公司相對於其行業的市盈率是高還是低。
Is Shanghai Mechanical & Electrical IndustryLtd Making Efficient Use Of Its Profits?
上海機電工業有限公司是否有效利用了利潤？
Despite having a normal three-year median payout ratio of 35% (where it is retaining 65% of its profits), Shanghai Mechanical & Electrical IndustryLtd has seen a decline in earnings as we saw above. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
儘管上海機電工業有限公司正常的三年派息率中值為35%(該公司保留了65%的利潤)，但正如我們上面看到的那樣，它的收益出現了下降。因此，可能還有其他因素在起作用，可能會阻礙經濟增長。例如，該業務一直面臨一些不利因素。
Moreover, Shanghai Mechanical & Electrical IndustryLtd has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 35% of its profits over the next three years. Still, forecasts suggest that Shanghai Mechanical & Electrical IndustryLtd's future ROE will rise to 9.4% even though the the company's payout ratio is not expected to change by much.
此外，上海機電工業股份有限公司至少在十年或更長時間內一直在分紅，這表明管理層肯定已經意識到，股東更喜歡分紅，而不是收益增長。在研究了最新的分析師共識數據後，我們發現，預計該公司將在未來三年繼續支付約35%的利潤。儘管如此，預測顯示上海機電工業有限公司未來的淨資產收益率將升至9.4%，儘管該公司的派息率預計不會有太大變化。
Summary
摘要
In total, we're a bit ambivalent about Shanghai Mechanical & Electrical IndustryLtd's performance. 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, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總體而言，我們對上海機電工業有限公司的表現有點矛盾。雖然該公司的再投資率確實很高，但低ROE意味着所有的再投資都沒有給投資者帶來任何好處，而且對收益增長產生了負面影響。話雖如此，我們研究了最新的分析師預測，發現儘管該公司過去的收益有所縮水，但分析師預計其未來的收益將會增長。要了解更多分析師對該公司的最新預測，請查看分析師對該公司預測的可視化。
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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.
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本文由Simply Wall St.撰寫，具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。