Most readers would already be aware that Guangdong Huate Gas' (SHSE:688268) stock increased significantly by 13% over the past three months. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Specifically, we decided to study Guangdong Huate Gas' ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
See our latest analysis for Guangdong Huate Gas
How Is ROE Calculated?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Guangdong Huate Gas is:
9.8% = CN¥141m ÷ CN¥1.4b (Based on the trailing twelve months to March 2022).
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.10.
Why Is ROE Important For Earnings Growth?
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.
A Side By Side comparison of Guangdong Huate Gas' Earnings Growth And 9.8% ROE
On the face of it, Guangdong Huate Gas' ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 10%. Particularly, the exceptional 22% net income growth seen by Guangdong Huate Gas over the past five years is pretty remarkable. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. Such as - high earnings retention or an efficient management in place.
We then performed a comparison between Guangdong Huate Gas' net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 19% in the same period.
SHSE:688268 Past Earnings Growth July 14th 2022
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. Is Guangdong Huate Gas fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Guangdong Huate Gas Making Efficient Use Of Its Profits?
Guangdong Huate Gas' 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 Guangdong Huate Gas is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
While Guangdong Huate Gas has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 21% over the next three years. As a result, the expected drop in Guangdong Huate Gas' payout ratio explains the anticipated rise in the company's future ROE to 14%, over the same period.
Conclusion
In total, it does look like Guangdong Huate Gas has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
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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.
大多數讀者應該已經知道,廣東華特燃氣(上海證券交易所股票代碼:688268)的股票在過去三個月裏大幅增長了13%。考慮到股價通常與公司的長期財務表現保持一致,我們決定更仔細地研究公司的財務指標,看看它們是否對最近的價格走勢起到了作用。具體地説,我們決定在本文中研究廣東華特燃氣的淨資產收益率。
股本回報率(ROE)是用來評估公司管理層利用公司資本效率的關鍵指標。換句話説,它揭示了該公司成功地將股東投資轉化為利潤。
查看我們對廣東華特燃氣的最新分析
淨資產收益率是如何計算的?
股本回報率可使用以下公式計算:
股本回報率=(持續經營的)淨利潤?股東權益
因此,根據上述公式,廣東華特燃氣的淨資產收益率為:
9.8%=1.41億元×14億元(以截至2022年3月的12個月為基礎)。
“回報”就是年度利潤。因此,這意味着股東每投資1元人民幣,公司就會產生0.10元的利潤。
為什麼淨資產收益率對收益增長很重要?
到目前為止,我們已經瞭解到淨資產收益率衡量的是一家公司創造利潤的效率。根據公司將這些利潤再投資或“保留”多少,以及這樣做的效率如何,我們就能夠評估一家公司的收益增長潛力。一般來説,在其他條件相同的情況下,股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
廣東華特燃氣盈利增長與9.8%淨資產收益率的並列比較
從表面上看,廣東華特燃氣的淨資產收益率(ROE)並不值得談論。然而,一項更仔細的研究表明,該公司的淨資產收益率接近10%的行業平均水平。特別值得一提的是,廣東華特燃氣在過去五年中實現了22%的超乎尋常的淨收入增長,這是相當了不起的。鑑於淨資產收益率略低,很可能還有其他一些方面在推動這一增長。例如-高收益留存或有效的管理到位。
然後,我們將廣東華特燃氣的淨收入增長與行業進行了比較,結果顯示,公司的增長與同期行業平均19%的增長相似。
上海證券交易所:過去688268的收益增長2022年7月14日
賦予一家公司價值的基礎在很大程度上與其盈利增長掛鈎。投資者下一步需要確定的是,預期的收益增長是否已經計入了股價。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。與其他公司相比,廣東華特燃氣的估值是否公平?這3個估值指標可能會幫助你做出決定。
廣東華特燃氣是否有效利用了利潤?
廣東華特燃氣的三年派息率中值為32%,相當適中,這意味着該公司保留了68%的收入。從表面上看,股息得到了很好的覆蓋,廣東華特燃氣正在有效地將其利潤進行再投資,這從我們上面討論的非凡增長中可見一斑。
儘管廣東華特燃氣的盈利有所增長,但它最近才開始派發股息。最有可能的是,該公司決定用股息給新股東和現有股東留下深刻印象。分析師現有的預估顯示,該公司未來三年的派息率預計將降至21%。因此,廣東華特燃氣派息率的預期下降解釋了該公司未來同期淨資產收益率預期上升至14%的原因。
結論
總體而言,廣東華特燃氣的業務確實有一些積極的方面。儘管回報率很低,但該公司將很高比例的利潤再投資於業務,無疑是其高收益增長的原因。既然如此,最新的分析師預測顯示,該公司的收益將繼續增長。要了解更多有關該公司未來收益增長預測的信息,請查看以下內容免費報告分析師對該公司的預測,以瞭解更多信息。
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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。