YiChang HEC ChangJiang Pharmaceutical Co., Ltd.'s (HKG:1558) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?
YiChang HEC ChangJiang Pharmaceutical Co., Ltd.'s (HKG:1558) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?
YiChang HEC ChangJiang Pharmaceutical's (HKG:1558) stock is up by a considerable 54% over the past three months. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on YiChang HEC ChangJiang Pharmaceutical's ROE.
宜昌東陽光長江藥業(HKG: 1558)的股票在過去三個月中大幅上漲了54%。我們想知道公司的財務狀況在價格變化中是否起着什麼作用,因爲公司的長期基本面通常決定市場結果。在本文中,我們決定重點關注宜昌東陽光長江藥業的投資回報率。
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.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。換句話說,它揭示了公司成功地將股東投資轉化爲利潤。
View our latest analysis for YiChang HEC ChangJiang Pharmaceutical
查看我們對宜昌HEC長江藥業的最新分析
How Is ROE Calculated?
ROE 是如何計算的?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for YiChang HEC ChangJiang Pharmaceutical is:
因此,根據上述公式,宜昌東陽光長江藥業的投資回報率爲:
16% = CN¥1.1b ÷ CN¥7.1b (Based on the trailing twelve months to June 2023).
16% = 1.1億元人民幣 ¥7.1億元人民幣(基於截至2023年6月的過去十二個月)。
The 'return' is the profit over the last twelve months. That means that for every HK$1 worth of shareholders' equity, the company generated HK$0.16 in profit.
“回報” 是過去十二個月的利潤。這意味着,每持有價值1港元的股東權益,該公司就會產生0.16港元的利潤。
What Has ROE Got To Do With Earnings Growth?
投資回報率與收益增長有什麼關係?
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. 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.
到目前爲止,我們已經了解到,投資回報率衡量的是公司創造利潤的效率。現在,我們需要評估公司再投資或 “保留” 了多少利潤以用於未來的增長,從而使我們對公司的增長潛力有所了解。一般而言,在其他條件相同的情況下,股本回報率和利潤留存率高的公司的增長率要高於不具有這些屬性的公司。
YiChang HEC ChangJiang Pharmaceutical's Earnings Growth And 16% ROE
宜昌東陽光長江藥業的收益增長和16%的投資回報率
At first glance, YiChang HEC ChangJiang Pharmaceutical seems to have a decent ROE. Especially when compared to the industry average of 13% the company's ROE looks pretty impressive. As you might expect, the 34% net income decline reported by YiChang HEC ChangJiang Pharmaceutical is a bit of a surprise. Therefore, there might be some other aspects that could explain this. These include low earnings retention or poor allocation of capital.
乍一看,宜昌HEC長江藥業的投資回報率似乎不錯。尤其是與13%的行業平均水平相比,該公司的投資回報率看起來相當可觀。正如你所預料的那樣,宜昌HEC長江藥業公佈的淨收入下降了34%,這有點令人驚訝。因此,可能還有其他一些方面可以解釋這一點。其中包括收益保留率低或資本分配不當。
That being said, we compared YiChang HEC ChangJiang Pharmaceutical'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 5.8% in the same 5-year period.
話雖如此,我們將宜昌東陽光長江藥業的表現與行業進行了比較,當我們發現儘管該公司縮減了收益,但同期該行業的收益卻以5.8%的速度增長時,我們感到擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231130/0-c6705a76c6541bb2de5e72013ef638ca-0-49b2277c3c5d336699dd5fb90eb168b9.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. 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 YiChang HEC ChangJiang Pharmaceutical is trading on a high P/E or a low P/E, relative to its industry.
收益增長是股票估值的重要因素。投資者應努力確定預期的收益增長或下降,無論情況如何,是否已被考慮在內。這樣做將幫助他們確定股票的未來是光明還是不祥。衡量預期收益增長的一個很好的指標是市盈率,它根據收益前景決定了市場願意爲股票支付的價格。因此,您可能需要檢查宜昌HEC長江藥業相對於其行業而言是高市盈率還是低市盈率。
Is YiChang HEC ChangJiang Pharmaceutical Making Efficient Use Of Its Profits?
宜昌東陽光長江藥業是否在有效利用其利潤?
While the company did payout a portion of its dividend in the past, it currently doesn't pay a dividend. This implies that potentially all of its profits are being reinvested in the business.
儘管該公司過去確實支付了部分股息,但目前不支付股息。這意味着其所有利潤都可能被再投資於該業務。
Conclusion
結論
Overall, we feel that YiChang HEC ChangJiang Pharmaceutical certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. 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.
總體而言,我們認爲宜昌東陽光長江藥業確實有一些積極因素需要考慮。然而,低收益增長有點令人擔憂,特別是考慮到該公司的回報率很高,並且正在對其利潤的很大一部分進行再投資。從表面上看,可能還有其他一些因素阻礙了增長,這些因素不一定與業務的控制有關。話雖如此,從分析師目前的估計來看,我們發現該公司的收益增長率有望大幅改善。這些分析師的預期是基於對該行業的廣泛預期,還是基於公司的基本面?點擊此處進入我們分析師對公司的預測頁面。
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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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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。