Ningbo Construction Co., Ltd.'s (SHSE:601789) Stock Is Going Strong: Have Financials A Role To Play?
Ningbo Construction Co., Ltd.'s (SHSE:601789) Stock Is Going Strong: Have Financials A Role To Play?
Most readers would already be aware that Ningbo Construction's (SHSE:601789) stock increased significantly by 10% over the past month. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Ningbo Construction's ROE today.
大多數讀者已經意識到,寧波建築(SHSE: 601789)的股票在過去一個月中大幅增長了10%。我們想知道公司的財務狀況在價格變動中是否起着什麼作用,因爲公司的長期基本面通常決定市場業績。特別是,我們今天將關注寧波建設的投資回報率。
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?
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算:
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 Ningbo Construction is:
因此,根據上述公式,寧波建設的投資回報率爲:
7.2% = CN¥370m ÷ CN¥5.2b (Based on the trailing twelve months to September 2023).
7.2% = 3.7億元人民幣 ÷ 52億元人民幣(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. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.07 in profit.
“回報” 是指公司去年的收益。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0.07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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定,投資回報率是衡量公司未來收益的有效盈利指標。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。
Ningbo Construction's Earnings Growth And 7.2% ROE
寧波建設的收益增長和7.2%的投資回報率
At first glance, Ningbo Construction's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 7.7%, we may spare it some thought. Even so, Ningbo Construction has shown a fairly decent growth in its net income which grew at a rate of 13%. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看,寧波建設的投資回報率看起來並不十分樂觀。但是,鑑於該公司的投資回報率與7.7%的平均行業投資回報率相似,我們可以不加思索。即便如此,寧波建設的淨收入仍表現出相當不錯的增長,增長率爲13%。考慮到投資回報率不是特別高,我們認爲還可能有其他因素在起作用,這些因素可能會影響公司的增長。例如,該公司的派息率很低或管理得很高效。
We then compared Ningbo Construction's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 8.4% in the same 5-year period.
然後,我們將寧波建設的淨收入增長與該行業進行了比較,我們很高興地看到,與同期5年同期8.4%的行業相比,該公司的增長數字更高。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240326/0-9d0f9795e030e86cc8ee4366911ac9f6-0-e05490d5ff0c189ccb7e17de176c37ad.png/big)
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Is Ningbo Construction fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增長是對股票進行估值時要考慮的重要指標。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。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。與其他公司相比,寧波建設的估值是否合理?這3種估值指標可能會幫助您做出決定。
Is Ningbo Construction Making Efficient Use Of Its Profits?
寧波建設在有效利用利潤嗎?
Ningbo Construction has a healthy combination of a moderate three-year median payout ratio of 34% (or a retention ratio of 66%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.
正如我們在上面看到的,寧波建設的三年中位數派息率適中,爲34%(或66%的留存率),以及可觀的收益增長,這意味着該公司一直在有效利用其利潤。
Besides, Ningbo Construction has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.
此外,寧波建設已經分紅了至少十年或更長時間。這表明該公司致力於與股東分享利潤。
Summary
摘要
Overall, we feel that Ningbo Construction certainly does have some positive factors to consider. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 1 risk we have identified for Ningbo Construction visit our risks dashboard for free.
總的來說,我們認爲寧波建設確實有一些積極的因素需要考慮。儘管投資回報率很低,但由於再投資率很高,該公司的收益實現了可觀的增長。雖然我們不會完全解散公司,但我們要做的是努力確定業務的風險,以便在公司周圍做出更明智的決定。要了解我們爲寧波建設確定的一種風險,請免費訪問我們的風險儀表板。
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。