Baosheng Science and Technology InnovationLtd (SHSE:600973) May Have Issues Allocating Its Capital
Baosheng Science and Technology InnovationLtd (SHSE:600973) May Have Issues Allocating Its Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. 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 Baosheng Science and Technology InnovationLtd (SHSE:600973), it didn't seem to tick all of these boxes.
如果你在尋找下一款多袋裝機時不確定從哪裏開始,那麼你應該注意一些關鍵趨勢。在一個完美的世界中,我們希望看到一家公司向其業務投入更多資本,理想情況下,從這些資本中獲得的回報也在增加。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到業務中併產生更高的回報。但是,當我們查看寶勝科技創新有限公司(SHSE: 600973)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)
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Baosheng Science and Technology InnovationLtd, this is the formula:
如果你以前沒有與ROCE合作過,它會衡量公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。要計算寶勝科技創新有限公司的這一指標,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)
0.064 = CN¥535m ÷ (CN¥22b - CN¥14b) (Based on the trailing twelve months to December 2023).
0.064 = 5.35億元人民幣 ÷(22億元人民幣-14億元人民幣) (基於截至2023年12月的過去十二個月)。
Therefore, Baosheng Science and Technology InnovationLtd has an ROCE of 6.4%. Even though it's in line with the industry average of 6.4%, it's still a low return by itself.
因此,寶勝科技創新有限公司的投資回報率爲6.4%。儘管它與6.4%的行業平均水平一致,但其本身的回報率仍然很低。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240323/0-e7b8a6d3f83f47bc4da514168f4fba54-0-e8ad22fe4bedfa7283cdb9eb32535e71.png/big)
In the above chart we have measured Baosheng Science and Technology InnovationLtd's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Baosheng Science and Technology InnovationLtd for free.
在上圖中,我們將寶盛科技創新有限公司之前的投資回報率與之前的業績進行了對比,但可以說,未來更爲重要。如果你願意,你可以免費查看報道寶勝科技創新有限公司的分析師的預測。
How Are Returns Trending?
退貨趨勢如何?
On the surface, the trend of ROCE at Baosheng Science and Technology InnovationLtd doesn't inspire confidence. To be more specific, ROCE has fallen from 11% over the last five years. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. 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.
從表面上看,寶勝科技創新有限公司的投資回報率趨勢並不能激發信心。更具體地說,投資回報率已從過去五年的11%下降了。同時,該業務正在使用更多的資本,但在過去的12個月中,這並沒有對銷售產生太大影響,因此這可能反映出長期投資。從現在起,值得關注公司的收益,看看這些投資最終是否確實爲利潤做出了貢獻。
On a separate but related note, it's important to know that Baosheng Science and Technology InnovationLtd has a current liabilities to total assets ratio of 63%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.
另一方面,重要的是要知道寶盛科技創新有限公司的流動負債與總資產的比率爲63%,我們認爲這個比率相當高。這實際上意味着供應商(或短期債權人)正在爲業務的很大一部分提供資金,因此請注意,這可能會帶來一些風險因素。雖然這不一定是壞事,但如果這個比率較低,可能會有好處。
In Conclusion...
總之...
In summary, Baosheng Science and Technology InnovationLtd is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. And investors may be recognizing these trends since the stock has only returned a total of 7.4% to shareholders over the last five years. Therefore, if you're looking for a multi-bagger, we'd propose looking at other options.
總而言之,寶勝科技創新有限公司正在將資金再投資到該業務中以實現增長,但不幸的是,銷售額似乎還沒有太大增長。投資者可能會意識到這些趨勢,因爲在過去五年中,該股向股東的總回報率僅爲7.4%。因此,如果您正在尋找多袋機,我們建議您考慮其他選項。
Baosheng Science and Technology InnovationLtd does come with some risks though, we found 4 warning signs in our investment analysis, and 1 of those is a bit concerning...
但是,寶勝科技創新有限公司確實存在一些風險,我們在投資分析中發現了4個警告信號,其中一個有點令人擔憂...
While Baosheng Science and Technology InnovationLtd isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
儘管寶盛科技創新有限公司的回報率並不高,但請查看這份免費的股本回報率高、資產負債表穩健的公司名單。
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