Canggang Railway Limited's (HKG:2169) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
Canggang Railway Limited's (HKG:2169) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
Canggang Railway (HKG:2169) has had a great run on the share market with its stock up by a significant 118% over the last three months. However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health. In this article, we decided to focus on Canggang Railway's ROE.
蒼鋼鐵路(HKG:2169)的股票在過去三個月裡大幅上漲了118%。然而,我們決定關注該公司的基本面,這些基本面似乎並未給出該公司財務健康狀況的明確跡象。在本文中,我們決定將重點放在蒼鋼鐵路的淨資產收益率上。
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. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或淨資產收益率是股東要考慮的一個重要因素,因為它告訴他們他們的資本再投資的效率。換句話說,它揭示了該公司成功地將股東投資轉化為利潤。
See our latest analysis for Canggang Railway
查看我們對蒼鋼鐵路的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率?
Return on equity can be calculated by using the formula:
股本回報率可使用以下公式計算:
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 Canggang Railway is:
因此,根據上述公式,蒼鋼鐵路的淨資產收益率為:
9.5% = CN¥73m ÷ CN¥774m (Based on the trailing twelve months to June 2023).
9.5%=7300萬元×7.74億元(以截至2023年6月的12個月為基礎)。
The 'return' is the income the business earned over the last year. So, this means that for every HK$1 of its shareholder's investments, the company generates a profit of HK$0.09.
“回報”指的是企業在過去一年中獲得的收入。因此,這意味著股東每投資1港元,公司就會產生0.09港元的利潤。
What Has ROE Got To Do With Earnings Growth?
淨資產收益率與盈利增長有什麼關係?
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. 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。一般來說,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。
A Side By Side comparison of Canggang Railway's Earnings Growth And 9.5% ROE
蒼鋼鐵路盈利增長與9.5%淨資產收益率的並列比較
On the face of it, Canggang Railway's ROE is not much to talk about. However, its ROE is similar to the industry average of 7.9%, so we won't completely dismiss the company. But then again, Canggang Railway's five year net income shrunk at a rate of 2.3%. Bear in mind, the company does have a slightly low ROE. Hence, this goes some way in explaining the shrinking earnings.
從表面上看,蒼鋼鐵路的ROE並沒有太多可談的內容。不過,其淨資產收益率接近7.9%的行業平均水準,因此我們不會完全對該公司不屑一顧。但話又說回來,蒼鋼鐵路五年淨收入以2.3%的速度縮水。請記住,該公司的淨資產收益率確實略低。因此,這在一定程度上解釋了收益縮水的原因。
From the 2.0% decline reported by the industry in the same period, we infer that Canggang Railway and its industry are both shrinking at a similar rate.
從同期行業報告的2.0%的降幅來看,我們推斷蒼鋼鐵路和其行業都在以類似的速度收縮。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231011/0-341ea64efb8eb2141ee274aa46d7f75f-0-aee8bf15f215887072a23b800dfb826a.png/big)
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. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Canggang Railway fairly valued compared to other companies? These 3 valuation measures might help you decide.
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。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。與其他公司相比,蒼鋼鐵路的估值是否公平?這3個估值指標可能會幫助你做出決定。
Is Canggang Railway Using Its Retained Earnings Effectively?
蒼鋼鐵路是否有效利用其留存收益?
Looking at its three-year median payout ratio of 45% (or a retention ratio of 55%) which is pretty normal, Canggang Railway's declining earnings is rather baffling as one would expect to see a fair bit of growth when a company is retaining a good portion of its profits. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
考慮到蒼鋼鐵路三年的派息率中值為45%(或留存率為55%)是相當正常的,蒼鋼鐵路不斷下降的收益相當令人費解,因為人們預計,當一家公司保留了很大一部分利潤時,它會出現相當大的增長。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。
Only recently, Canggang Railway stated paying a dividend. This likely means that the management might have concluded that its shareholders have a strong preference for dividends.
就在最近,蒼鋼鐵路才宣佈分紅。這可能意味著,管理層可能已經得出結論,其股東對股息有強烈的偏好。
Conclusion
結論
In total, we're a bit ambivalent about Canggang Railway's performance. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. You can see the 2 risks we have identified for Canggang Railway by visiting our risks dashboard for free on our platform here.
總體而言,我們對蒼鋼鐵路的表現有些矛盾。儘管它似乎保留了大部分利潤,但鑑於淨資產收益率較低,投資者可能終究不會從所有這些再投資中受益。低收益增長率表明我們的理論是正確的。總而言之,我們將謹慎對待這家公司,其中一種方法是查看業務的風險概況。您可以訪問我們的網站查看我們為滄港鐵路確定的兩個風險風險控制面板在我們的平臺上是免費的。
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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.