Is Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd.'s (SHSE:603701) Stock Price Struggling As A Result Of Its Mixed Financials?
Is Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd.'s (SHSE:603701) Stock Price Struggling As A Result Of Its Mixed Financials?
Zhejiang Dehong Automotive Electronic & Electrical (SHSE:603701) has had a rough three months with its share price down 28%. It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. In this article, we decided to focus on Zhejiang Dehong Automotive Electronic & Electrical's ROE.
浙江德宏汽車電子電器(SHSE: 603701)經歷了艱難的三個月,其股價下跌了28%。看來市場可能完全忽視了公司基本面的積極方面,並決定更多地考慮負面方面。長期基本面通常是推動市場結果的因素,因此值得密切關注。在本文中,我們決定重點介紹浙江德宏汽車電子電氣的投資回報率。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
How To Calculate Return On Equity?
如何計算股本回報率?
The formula for return on equity is:
股本回報率的公式是:
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 Zhejiang Dehong Automotive Electronic & Electrical is:
因此,根據上述公式,浙江德宏汽車電子電氣的投資回報率爲:
2.8% = CN¥22m ÷ CN¥780m (Based on the trailing twelve months to September 2023).
2.8% = 2200萬元人民幣 ÷ 7.8億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.03 in profit.
“回報” 是過去十二個月的利潤。這意味着,公司每獲得價值1元人民幣的股東權益,就會產生0.03CN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. 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。
A Side By Side comparison of Zhejiang Dehong Automotive Electronic & Electrical's Earnings Growth And 2.8% ROE
浙江德宏汽車電子電氣的收益增長和2.8%的投資回報率的並排比較
As you can see, Zhejiang Dehong Automotive Electronic & Electrical's ROE looks pretty weak. Even compared to the average industry ROE of 7.3%, the company's ROE is quite dismal. For this reason, Zhejiang Dehong Automotive Electronic & Electrical's five year net income decline of 38% is not surprising given its lower ROE. However, there could also be other factors causing the earnings to decline. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
如你所見,浙江德宏汽車電子電氣的投資回報率看起來相當疲軟。即使與7.3%的行業平均投資回報率相比,該公司的投資回報率也相當慘淡。出於這個原因,鑑於投資回報率較低,浙江德宏汽車電子電氣五年淨收入下降了38%,這並不奇怪。但是,也可能有其他因素導致收益下降。例如,該公司的派息率非常高,或者面臨競爭壓力。
However, when we compared Zhejiang Dehong Automotive Electronic & Electrical's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 3.8% in the same period. This is quite worrisome.
但是,當我們將浙江德宏汽車電子電氣的增長與該行業的增長進行比較時,我們發現,儘管該公司的收益一直在萎縮,但該行業同期的收益增長了3.8%。這非常令人擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240225/0-261ae7382ff5dd6fb9a8d53e908c3f47-0-10d067b7a694c18eadc87bb8be525dfc.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. If you're wondering about Zhejiang Dehong Automotive Electronic & Electrical's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
爲公司附加價值的基礎在很大程度上與其收益增長息息相關。無論如何,投資者應設法確定預期的收益增長或下降是否已計入其中。通過這樣做,他們將知道股票是走向清澈的藍色海水還是沼澤水域在等着呢。如果你想知道浙江德宏汽車電子電氣的估值,可以看看這個衡量其與行業相比的市盈率指標。
Is Zhejiang Dehong Automotive Electronic & Electrical Making Efficient Use Of Its Profits?
浙江德宏汽車電子電器在有效利用利潤嗎?
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
In total, we're a bit ambivalent about Zhejiang Dehong Automotive Electronic & Electrical's performance. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. 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. To know the 3 risks we have identified for Zhejiang Dehong Automotive Electronic & Electrical visit our risks dashboard for free.
總的來說,我們對浙江德宏汽車電子電氣的表現有點矛盾。儘管該公司的利潤保留率確實很高,但其低迴報率可能會阻礙其收益增長。總而言之,我們將謹慎對待這家公司,其中一種方法是研究該業務的風險狀況。要了解我們爲浙江德宏汽車電子電氣確定的三種風險,請免費訪問我們的風險儀表板。
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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。