Do Its Financials Have Any Role To Play In Driving China XD Electric Co., Ltd's (SHSE:601179) Stock Up Recently?
Do Its Financials Have Any Role To Play In Driving China XD Electric Co., Ltd's (SHSE:601179) Stock Up Recently?
China XD Electric's (SHSE:601179) stock is up by a considerable 12% over the past three months. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to China XD Electric's ROE today.
中國西電電氣(上海證券交易所代碼:601179)的股票在過去三個月中上漲了12%。正如大多數人所知道的那樣,基本面通常是指導市場價格長期走勢的因素,因此我們今天決定研究公司的關鍵財務指標,以確定它們在近期的價格走勢中是否可以發揮任何作用。特別是,我們今天將關注中國西電電氣的投資回報率。
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
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,投資回報率顯示了每美元從其股東投資中產生的利潤。
How Is ROE Calculated?
ROE 是如何計算的?
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 China XD Electric is:
因此,根據上述公式,中國西電電氣的投資回報率爲:
3.3% = CN¥806m ÷ CN¥24b (Based on the trailing twelve months to September 2023).
3.3% = 8.06億元人民幣 ¥24b元(基於截至2023年9月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.03 in profit.
“回報” 是指公司去年的收益。另一種看法是,每持有價值1元人民幣的股權,該公司就能獲得0.03元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定,投資回報率是衡量公司未來收益的有效利潤創造指標。我們現在需要評估公司爲未來增長再投資或 “保留” 了多少利潤,這樣我們就可以了解公司的增長潛力。假設其他一切都保持不變,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。
China XD Electric's Earnings Growth And 3.3% ROE
中國西電電氣的收益增長和3.3%的投資回報率
As you can see, China XD Electric's ROE looks pretty weak. Not just that, even compared to the industry average of 7.2%, the company's ROE is entirely unremarkable. However, the moderate 8.5% net income growth seen by China XD Electric over the past five years is definitely a positive. We reckon that there could be other factors at play here. Such as - high earnings retention or an efficient management in place.
如你所見,中國西電電氣的投資回報率看起來相當疲軟。不僅如此,即使與7.2%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。但是,中國西電電氣在過去五年中實現了8.5%的溫和淨收入增長,這絕對是積極的。我們認爲這裏可能還有其他因素在起作用。例如——高收益留存率或實行高效管理。
We then compared China XD Electric's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 14% in the same 5-year period, which is a bit concerning.
然後,我們將中國西電電氣的淨收入增長與該行業進行了比較,發現該公司的增長數字低於同期14%的行業平均增長率,這有點令人擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240326/0-c8db6fd4d899a4edf7b9cbd32af6b857-0-b7cc8614623f662868d8c530e355c933.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. 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 China XD Electric 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。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。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,您可能需要檢查中國西電電氣相對於其行業是高市盈率還是低市盈率。
Is China XD Electric Efficiently Re-investing Its Profits?
中國西電電氣是否正在有效地進行利潤再投資?
China XD Electric has a three-year median payout ratio of 35%, which implies that it retains the remaining 65% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
中國西電電氣的三年派息率中位數爲35%,這意味着它保留了剩餘的65%的利潤。這表明其股息覆蓋範圍良好,鑑於該公司的可觀增長,管理層似乎正在有效地對其收益進行再投資。
Moreover, China XD Electric is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 35% of its profits over the next three years. Regardless, the future ROE for China XD Electric is predicted to rise to 5.5% despite there being not much change expected in its payout ratio.
此外,中國西電電氣決心繼續與股東分享利潤,這是我們從其支付股息至少十年的長期歷史中推斷出來的。在研究了分析師的最新共識數據後,我們發現該公司預計將在未來三年內繼續支付約35%的利潤。無論如何,儘管預計中國西電電氣的派息率沒有太大變化,但其未來的投資回報率預計將升至5.5%。
Conclusion
結論
Overall, we feel that China XD Electric certainly does have some positive factors to consider. That is, a decent growth in earnings backed by a high rate of reinvestment. However, we do feel that that earnings growth could have been higher if the business were to improve on the low ROE rate. Especially given how the company is reinvesting a huge chunk of its profits. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總體而言,我們認爲中國西電電氣確實有一些積極因素需要考慮。也就是說,在高再投資率的支持下,收益的體面增長。但是,我們確實認爲,如果業務在較低的投資回報率基礎上有所改善,收益增長本來可以更高。特別是考慮到該公司正在將很大一部分利潤再投資。話雖如此,最新的行業分析師預測顯示,該公司的收益有望加速。這些分析師的預期是基於對該行業的廣泛預期,還是基於公司的基本面?點擊此處進入我們分析師對公司的預測頁面。
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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。