Is ZheJiang KangLongDa Special Protection Technology Co., Ltd's (SHSE:603665) Recent Price Movement Underpinned By Its Weak Fundamentals?
Is ZheJiang KangLongDa Special Protection Technology Co., Ltd's (SHSE:603665) Recent Price Movement Underpinned By Its Weak Fundamentals?
With its stock down 12% over the past three months, it is easy to disregard ZheJiang KangLongDa Special Protection Technology (SHSE:603665). 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. Specifically, we decided to study ZheJiang KangLongDa Special Protection Technology's ROE in this article.
由於其股票在過去三個月中下跌了12%,人們很容易忽視浙江康隆達特殊保護科技(上海證券交易所代碼:603665)。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。具體而言,我們決定在本文中研究浙江康隆達特種防護科技的投資回報率。
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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率或投資回報率是股東需要考慮的重要因素,因爲它可以告訴他們資本再投資的有效性。簡而言之,它用於評估公司相對於其股權資本的盈利能力。
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 ZheJiang KangLongDa Special Protection Technology is:
因此,根據以上公式,浙江康隆達特種防護科技的投資回報率爲:
3.9% = CN¥60m ÷ CN¥1.6b (Based on the trailing twelve months to September 2023).
3.9% = 6000萬元人民幣 ÷ 16億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.04 in profit.
“回報” 是過去十二個月的稅後收入。另一種思考方式是,公司每擁有價值1元人民幣的股權,就能獲得0.04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?
So far, we've learned that ROE is a measure of a company's profitability. 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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
到目前爲止,我們已經了解到,投資回報率是衡量公司盈利能力的指標。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。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。
A Side By Side comparison of ZheJiang KangLongDa Special Protection Technology's Earnings Growth And 3.9% ROE
浙江康隆達特防科技的收益增長和3.9%的投資回報率的並排比較
It is quite clear that ZheJiang KangLongDa Special Protection Technology's ROE is rather low. Not just that, even compared to the industry average of 6.1%, the company's ROE is entirely unremarkable. Given the circumstances, the significant decline in net income by 9.9% seen by ZheJiang KangLongDa Special Protection Technology over the last five years is not surprising. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
很明顯,浙江康隆達特種防護科技的投資回報率相當低。不僅如此,即使與6.1%的行業平均水平相比,該公司的投資回報率也完全不引人注目。在這種情況下,浙江康隆達特防科技在過去五年中淨收入大幅下降了9.9%,這並不奇怪。我們認爲,可能還有其他方面對公司的盈利前景產生負面影響。例如,該公司的派息率非常高,或者面臨競爭壓力。
So, as a next step, we compared ZheJiang KangLongDa Special Protection Technology's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 3.3% over the last few years.
因此,下一步,我們將浙江康隆達特種防護科技的表現與行業進行了比較,失望地發現,儘管該公司一直在縮減收益,但該行業在過去幾年中一直以3.3%的速度增長。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240228/0-ef3bcdaf294440e23ed02b1a9ede50dd-0-bbddc64873b1036b2443636ccabaa41a.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 ZheJiang KangLongDa Special Protection Technology'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。如果你想知道浙江康隆達特防科技的估值,可以看看這個衡量其市盈率與行業相比的指標。
Is ZheJiang KangLongDa Special Protection Technology Using Its Retained Earnings Effectively?
浙江康隆達特種防護科技是否在有效使用其留存收益?
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。
Summary
摘要
Overall, we have mixed feelings about ZheJiang KangLongDa Special Protection Technology. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. Up till now, we've only made a short study of the company's growth data. You can do your own research on ZheJiang KangLongDa Special Protection Technology and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows.
總的來說,我們對浙江康隆達特種防護科技有喜憂參半的感覺。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。到目前爲止,我們只對公司的增長數據進行了簡短的研究。你可以自己研究浙江康隆達特殊防護技術,看看這張免費的過去收益、收入和現金流的詳細圖表,看看它過去的表現。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。