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Are Sinocat Environmental Technology Co.,Ltd.'s (SHSE:688737) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?

Are Sinocat Environmental Technology Co.,Ltd.'s (SHSE:688737) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?

中凱環保科技有限公司嗎, Ltd. 's(SHSE: 688737)財務狀況喜憂參半股市表現不佳的原因?
Simply Wall St ·  03/05 20:32

With its stock down 28% over the past three months, it is easy to disregard Sinocat Environmental TechnologyLtd (SHSE:688737). 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. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. Particularly, we will be paying attention to Sinocat Environmental TechnologyLtd's ROE today.

由於其股票在過去三個月中下跌了28%,很容易忽視中凱環境技術有限公司(上海證券交易所代碼:688737)。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。股票價格通常由公司的長期財務業績驅動,因此我們決定更多地關注公司的財務業績。特別是,我們今天將關注中凱環境科技有限公司的投資回報率。

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.

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。簡而言之,它衡量公司相對於股東權益的盈利能力。

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 Sinocat Environmental TechnologyLtd is:

因此,根據上述公式,中凱環境科技有限公司的投資回報率爲:

2.3% = CN¥43m ÷ CN¥1.9b (Based on the trailing twelve months to December 2023).

2.3% = 4,300萬元人民幣 ÷ 19億元人民幣(基於截至2023年12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¥0.02 in profit.

“回報” 是過去十二個月的稅後收入。另一種思考方式是,公司每持有價值1元人民幣的股權,就能獲得0.02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?

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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

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。假設其他一切保持不變,那麼與不一定具有這些特徵的公司相比,投資回報率和利潤保留率越高,公司的增長率就越高。

A Side By Side comparison of Sinocat Environmental TechnologyLtd's Earnings Growth And 2.3% ROE

中凱環境科技有限公司的收益增長和2.3%的投資回報率的並排比較

As you can see, Sinocat Environmental TechnologyLtd's ROE looks pretty weak. Not just that, even compared to the industry average of 7.0%, the company's ROE is entirely unremarkable. Therefore, it might not be wrong to say that the five year net income decline of 34% seen by Sinocat Environmental TechnologyLtd was possibly a result of it having a lower ROE. However, there could also be other factors causing the earnings to decline. Such as - low earnings retention or poor allocation of capital.

如你所見,中凱環境科技有限公司的投資回報率看起來相當疲軟。不僅如此,即使與7.0%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。因此,說中凱環境技術有限公司五年淨收入下降34%可能是其投資回報率降低的結果,這可能沒有錯。但是,可能還有其他因素導致收益下降。例如-收益保留率低或資本配置不佳。

However, when we compared Sinocat Environmental TechnologyLtd's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 12% in the same period. This is quite worrisome.

但是,當我們將Sinocat環境技術有限公司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12%。這非常令人擔憂。

past-earnings-growth
SHSE:688737 Past Earnings Growth March 6th 2024
SHSE: 688737 過去的收益增長 2024 年 3 月 6 日

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). 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 Sinocat Environmental TechnologyLtd is trading on a high P/E or a low P/E, relative 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。對於投資者來說,重要的是要知道市場是否對公司的預期收益增長(或下降)進行了定價。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。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,你可能需要檢查一下相對於其行業,中凱環境科技有限公司的交易市盈率是高還是低。

Is Sinocat Environmental TechnologyLtd Efficiently Re-investing Its Profits?

Sinocat 環境技術有限公司是否有效地將其利潤再投資?

Sinocat Environmental TechnologyLtd doesn't pay any dividend, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.

Sinocat Environmental TechnologyLtd不支付任何股息,這意味着該公司保留了所有利潤,這讓我們想知道,如果它無法利用收益來發展業務,爲什麼還要保留收益。因此,在這方面可能還有其他解釋。例如,該公司的業務可能正在惡化。

Summary

摘要

Overall, we have mixed feelings about Sinocat Environmental TechnologyLtd. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.

總的來說,我們對中凱環境科技有限公司的看法喜憂參半。儘管鑑於投資回報率低,它似乎保留了大部分利潤,但投資者畢竟可能無法從所有這些再投資中受益。低收入增長表明我們的理論是正確的。話雖如此,我們研究了分析師的最新預測,發現儘管該公司過去曾縮減收益,但分析師預計其未來收益將增長。要了解有關公司未來收益增長預測的更多信息,請查看這份關於分析師預測的免費報告,以了解更多信息。

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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。

声明:本內容僅用作提供資訊及教育之目的,不構成對任何特定投資或投資策略的推薦或認可。 更多信息
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