Declining Stock and Solid Fundamentals: Is The Market Wrong About CIG ShangHai Co., Ltd. (SHSE:603083)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About CIG ShangHai Co., Ltd. (SHSE:603083)?
CIG ShangHai (SHSE:603083) has had a rough month with its share price down 13%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on CIG ShangHai's ROE.
CIG上海(上海證券交易所代碼:603083)經歷了艱難的一個月,其股價下跌了13%。但是,仔細觀察其良好的財務狀況可能會讓你重新考慮。鑑於基本面通常會推動長期市場業績,該公司值得關注。在本文中,我們決定重點關注CIG上海的投資回報率。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。簡而言之,它衡量公司相對於股東權益的盈利能力。
View our latest analysis for CIG ShangHai
查看我們對CIG上海的最新分析
How Is ROE Calculated?
ROE 是如何計算的?
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算:
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 CIG ShangHai is:
因此,根據上述公式,CIG上海的投資回報率爲:
10% = CN¥218m ÷ CN¥2.2b (Based on the trailing twelve months to September 2023).
10% = 2.18億元人民幣 ÷ 22億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.10 in profit.
“回報” 是每年的利潤。另一種思考方式是,公司每持有價值1元人民幣的股權,就能獲得0.10元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
投資回報率與收益增長之間有什麼關係?
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. 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。然後,我們能夠評估公司的收益增長潛力,具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。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。
CIG ShangHai's Earnings Growth And 10% ROE
CIG上海的收益增長和10%的投資回報率
When you first look at it, CIG ShangHai's ROE doesn't look that attractive. However, the fact that the its ROE is quite higher to the industry average of 6.7% doesn't go unnoticed by us. Particularly, the substantial 30% net income growth seen by CIG ShangHai over the past five years is impressive . That being said, the company does have a slightly low ROE to begin with, just that it is higher than the industry average. Hence, there might be some other aspects that are causing earnings to grow. 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.
當你第一次看的時候,CIG上海的投資回報率看起來並不那麼吸引人。但是,其投資回報率遠高於行業平均水平的6.7%,這一事實並沒有被我們忽視。特別是,CIG上海在過去五年中實現了30%的淨收入大幅增長,這令人印象深刻。話雖如此,該公司的投資回報率一開始確實略低,只是高於行業平均水平。因此,可能還有其他一些方面導致收益增長。例如,整個行業可能正在經歷高增長階段,或者該公司的派息率很低。
We then compared CIG ShangHai'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 13% in the same 5-year period.
然後,我們將CIG Shanghai的淨收入增長與該行業進行了比較,我們很高興地看到,與同期同期增長13%的行業相比,該公司的增長數字更高。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240119/0-f48409c1c3b32f33957d2b26c0c1ece0-0-674239fed80a3e0d2435f912fa194eb7.png/big)
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about CIG ShangHai's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增長是對股票進行估值時要考慮的重要指標。投資者接下來需要確定的是,預期的收益增長或缺乏收益是否已經包含在股價中。然後,這可以幫助他們確定股票是爲光明還是暗淡的未來而佈局。如果你想知道CIG上海的估值,可以看看這個衡量其與行業相比的市盈率指標。
Is CIG ShangHai Making Efficient Use Of Its Profits?
CIG上海是否在有效利用其利潤?
CIG ShangHai doesn't pay any dividend currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above.
CIG上海目前不支付任何股息,這實質上意味着它一直在將所有利潤再投資於該業務。這無疑促成了我們上面討論的高收益增長數字。
Summary
摘要
On the whole, we feel that CIG ShangHai's performance has been quite good. 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. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. To know the 2 risks we have identified for CIG ShangHai visit our risks dashboard for free.
總的來說,我們覺得CIG上海的表現相當不錯。特別是,很高興看到該公司的收益在可觀的投資回報率和高再投資率的支持下實現了顯著增長。考慮到每股收益如何影響長期股價,如果該公司繼續以現有方式增長收益,這可能會對其股價產生積極影響。請記住,股票的價格還取決於感知的風險。因此,在投資任何公司之前,投資者必須隨時了解所涉及的風險。要了解我們爲CIG Shanghai確定的兩種風險,請免費訪問我們的風險控制面板。
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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。