Hvsen Biotechnology's (SZSE:300871) stock is up by a considerable 29% over the past month. 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. Particularly, we will be paying attention to Hvsen Biotechnology's ROE today.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
Check out our latest analysis for Hvsen Biotechnology
How To Calculate Return On Equity?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Hvsen Biotechnology is:
2.4% = CN¥38m ÷ CN¥1.6b (Based on the trailing twelve months to June 2022).
The 'return' is the profit over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.02.
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. 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.
Hvsen Biotechnology's Earnings Growth And 2.4% ROE
As you can see, Hvsen Biotechnology's ROE looks pretty weak. Even compared to the average industry ROE of 8.0%, the company's ROE is quite dismal. Although, we can see that Hvsen Biotechnology saw a modest net income growth of 7.1% over the past five years. We believe that there might be other aspects that are positively influencing the company's earnings 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.
Next, on comparing with the industry net income growth, we found that Hvsen Biotechnology's reported growth was lower than the industry growth of 9.8% in the same period, which is not something we like to see.
SZSE:300871 Past Earnings Growth September 5th 2022
Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). 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 Hvsen Biotechnology's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Hvsen Biotechnology Using Its Retained Earnings Effectively?
With a three-year median payout ratio of 28% (implying that the company retains 72% of its profits), it seems that Hvsen Biotechnology is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
Conclusion
On the whole, we do feel that Hvsen Biotechnology has some positive attributes. Specifically, its fairly high earnings growth number, which no doubt was backed by the company's high earnings retention. Still, the low ROE means that all that reinvestment is not reaping a lot of benefit to the investors. 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.
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華生生物科技(深圳證券交易所股票代碼:300871)的股票在過去一個月裏大幅上漲了29%。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。今天,我們將特別關注華生生物科技的淨資產收益率。
股本回報率(ROE)是對一家公司增值和管理投資者資金的效率的測試。簡而言之,它衡量的是一家公司相對於股東權益的盈利能力。
查看我們對Hvsen Biotech的最新分析
如何計算股本回報率?
這個股本回報率公式是:
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,華生生物科技的淨資產收益率為:
2.4%=CN元3800萬×CN元16億元(基於截至2022年6月的12個月)。
“收益”是過去12個月的利潤。因此,這意味着股東每投資1元人民幣,公司就會產生0.02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。假設其他條件相同,與沒有相同特徵的公司相比,擁有更高股本回報率和更高利潤保留率的公司通常會有更高的增長率。
華生生物科技的盈利增長和2.4%的淨資產收益率
如你所見,華生生物科技的淨資產收益率(ROE)看起來相當弱。即使與8.0%的行業平均淨資產收益率相比,該公司的淨資產收益率也相當慘淡。儘管如此,我們可以看到,過去五年,華生生物科技的淨收入温和增長了7.1%。我們認為,可能還有其他方面正在積極影響公司的收益增長。例如,公司管理層可能做出了一些良好的戰略決策,或者公司的派息率較低。
接下來,對比行業淨收入增長,我們發現,華生生物科技的報告增長低於同期行業9.8%的增長,這是我們不願意看到的。
深圳證交所:2022年9月5日收益增長300871
盈利增長是評估一隻股票時需要考慮的一個重要指標。對於投資者來説,重要的是知道市場是否已經消化了公司預期的收益增長(或下降)。通過這樣做,他們將知道股票是將進入清澈的藍色水域,還是等待沼澤水域。如果你想知道Hvsen Biotech的估值,看看這個衡量其市盈率的指標,與其行業相比。
華生生物科技是否有效地利用了其留存收益?
三年的中值派息率為28%(這意味着公司保留了72%的利潤),似乎是在以一種高效的方式進行再投資,即它看到了可觀的收益增長,並支付了豐厚的股息。
結論
總體而言,我們確實覺得華生生物科技有一些積極的屬性。具體地説,它相當高的收益增長數字,這無疑得到了該公司高收益留存的支持。儘管如此,較低的淨資產收益率意味着,所有這些再投資並沒有給投資者帶來很多好處。儘管如此,最新的行業分析師預測顯示,該公司的收益預計將加速增長。這些分析師的預期是基於對該行業的廣泛預期,還是基於該公司的基本面?點擊此處進入我們分析師對該公司的預測頁面。
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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。