Wanhua Chemical Group (SHSE:600309) Could Be Struggling To Allocate Capital
Wanhua Chemical Group (SHSE:600309) Could Be Struggling To Allocate Capital
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Although, when we looked at Wanhua Chemical Group (SHSE:600309), it didn't seem to tick all of these boxes.
如果你正在尋找一款多功能裝袋機,有幾件事需要注意。理想情況下,企業將表現出兩種趨勢;首先是增長 返回 論資本使用率(ROCE),其次是增加 金額 的已動用資本。這向我們表明,它是一臺複合機器,能夠持續將其收益再投資於業務併產生更高的回報。但是,當我們查看萬華化學集團(SHSE: 600309)時,它似乎並沒有勾選所有這些方框。
Understanding Return On Capital Employed (ROCE)
了解資本使用回報率 (ROCE)
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Wanhua Chemical Group, this is the formula:
對於那些不確定ROCE是什麼的人來說,它衡量的是公司從業務中使用的資本中可以產生的稅前利潤額。要計算萬華化學集團的這個指標,公式如下:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)
0.14 = CN¥19b ÷ (CN¥256b - CN¥121b) (Based on the trailing twelve months to September 2023).
0.14 = CN¥19b ≤(CN¥256b-CN¥121b) (基於截至2023年9月的過去十二個月)。
Thus, Wanhua Chemical Group has an ROCE of 14%. In absolute terms, that's a satisfactory return, but compared to the Chemicals industry average of 5.5% it's much better.
因此,萬華化學集團的投資回報率爲14%。從絕對值來看,這是一個令人滿意的回報,但與化工行業5.5%的平均水平相比,要好得多。
Check out our latest analysis for Wanhua Chemical Group
查看我們對萬華化學集團的最新分析
Above you can see how the current ROCE for Wanhua Chemical Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for Wanhua Chemical Group.
在上方你可以看到萬華化學集團當前的投資回報率與之前的資本回報率的比較,但從過去可以看出來只有這麼多。如果你想了解分析師對未來的預測,你應該查看我們爲萬華化學集團提供的免費報告。
How Are Returns Trending?
退貨趨勢如何?
When we looked at the ROCE trend at Wanhua Chemical Group, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 14% from 52% five years ago. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.
當我們查看萬華化學集團的投資回報率走勢時,我們並沒有獲得太大的信心。在過去五年中,資本回報率從五年前的52%下降到14%。另一方面,去年,該公司一直在使用更多資金,但銷售額沒有相應改善,這可能表明這些投資是長期投資。值得關注該公司的收益,看看這些投資最終能否爲利潤做出貢獻。
On a separate but related note, it's important to know that Wanhua Chemical Group has a current liabilities to total assets ratio of 47%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.
在另一份但相關的說明中,重要的是要知道萬華化學集團的流動負債與總資產的比率爲47%,我們認爲這個比率相當高。這可能會帶來一些風險,因爲該公司的運營基本上相當依賴其供應商或其他類型的短期債權人。理想情況下,我們希望看到這種情況減少,因爲這將意味着承擔風險的債務減少。
The Bottom Line
底線
Bringing it all together, while we're somewhat encouraged by Wanhua Chemical Group's reinvestment in its own business, we're aware that returns are shrinking. Yet to long term shareholders the stock has gifted them an incredible 185% return in the last five years, so the market appears to be rosy about its future. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.
綜上所述,儘管萬華化學集團對自身業務的再投資令我們有些鼓舞,但我們意識到回報正在萎縮。然而,對於長期股東來說,該股在過去五年中爲他們帶來了驚人的185%的回報,因此市場似乎對其未來持樂觀態度。歸根結底,如果潛在趨勢持續下去,我們就不會屏住呼吸了,因爲未來它是一個多管齊下。
One more thing to note, we've identified 2 warning signs with Wanhua Chemical Group and understanding them should be part of your investment process.
還有一點需要注意的是,我們已經向萬華化學集團確定了兩個警告信號,理解它們應該成爲您投資過程的一部分。
While Wanhua Chemical Group isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
儘管萬華化學集團的回報率不是最高的,但請查看這份免費清單,列出了資產負債表穩健且股本回報率高的公司。
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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。