Are Robust Financials Driving The Recent Rally In Jilin Expressway Co., Ltd.'s (SHSE:601518) Stock?
Are Robust Financials Driving The Recent Rally In Jilin Expressway Co., Ltd.'s (SHSE:601518) Stock?
The formula for ROE is: Jilin Expressway (SHSE:601518) has had a great run on the share market with its stock up by a significant 22% over the last three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to Jilin Expressway's ROE today.
吉林高速公路(上海證券交易所代碼：601518)的股票在過去三個月裡大幅上漲了22%。由於市場通常為公司的長期基本面買單，我們決定研究公司的關鍵業績指標，看看它們是否會影響市場。今天我們特別關注吉林高速公路的淨資產收益率。
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.
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。換句話說，它揭示了該公司成功地將股東投資轉化為利潤。
Check out our latest analysis for Jilin Expressway
查看我們對吉林高速公路的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率？
The formula for ROE is:
這個淨資產收益率公式是：
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 Jilin Expressway is:
因此，根據上述公式，吉林省高速公路的淨資產收益率為：
9.5% = CN¥467m ÷ CN¥4.9b (Based on the trailing twelve months to March 2023).
9.5%=4.67億元×49億元(以截至2023年3月的12個月為基礎)。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.09 in profit.
“回報”就是年度利潤。這意味著，股東權益每增加1元，公司就會產生0.09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？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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。我們現在需要評估公司將多少利潤再投資或“保留”用於未來的增長，這就讓我們對公司的增長潛力有了一個瞭解。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 Jilin Expressway's Earnings Growth And 9.5% ROE
吉林高速公路盈利增長與9.5%淨資產收益率的並列比較
At first glance, Jilin Expressway's ROE doesn't look very promising. However, the fact that the company's ROE is higher than the average industry ROE of 5.4%, is definitely interesting. Consequently, this likely laid the ground for the decent growth of 13% seen over the past five years by Jilin Expressway. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. Therefore, the growth in earnings could also be the result of other factors. For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.
乍一看，吉林高速公路的淨資產收益率看起來並不是很有希望。然而，該公司的淨資產收益率高於行業平均5.4%的淨資產收益率，這絕對是有趣的。因此，這可能為吉林高速公路在過去五年中實現13%的體面增長奠定了基礎。請記住，該公司的淨資產收益率(ROE)確實較低。只是行業的淨資產收益率較低。因此，收益的增長也可能是其他因素的結果。例如，更廣泛的行業可能正在經歷高增長階段，或者公司的派息率較低。
We then compared Jilin Expressway's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 4.1% in the same period.
然後，我們將吉林高速公路的淨收入增長與行業進行了比較，我們很高興地看到，與同期4.1%的行業增長率相比，該公司的增長數位更高。
Earnings growth is a huge factor in stock valuation. 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 Jilin Expressway's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是股票估值的一個重要因素。對於投資者來說，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。如果你想知道吉林高速公路的估值，看看這個衡量其本益比的指標，與其行業相比。
Is Jilin Expressway Making Efficient Use Of Its Profits?
吉林高速公路是否在高效利用其利潤？
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. We infer that the company has been reinvesting all of its profits to grow its business.
雖然該公司過去確實支付了一部分股息，但目前不支付股息。我們推斷，該公司一直在將所有利潤進行再投資，以發展業務。
Summary
摘要
Overall, we are quite pleased with Jilin Expressway's performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate.
總體而言，我們對吉林高速公路的表現相當滿意。特別是，看到該公司在可觀的淨資產收益率和高再投資率的支持下實現了顯著的收益增長，這一點令人欣慰。
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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。
