Is Jiangsu Sainty Corp., Ltd.'s (SHSE:600287) Stock On A Downtrend As A Result Of Its Poor Financials?
Is Jiangsu Sainty Corp., Ltd.'s (SHSE:600287) Stock On A Downtrend As A Result Of Its Poor Financials?
It is hard to get excited after looking at Jiangsu Sainty's (SHSE:600287) recent performance, when its stock has declined 31% over the past three months. Given that stock prices are usually driven by a company's fundamentals over the long term, which in this case look pretty weak, we decided to study the company's key financial indicators. Specifically, we decided to study Jiangsu Sainty's ROE in this article.
看了江蘇舜天(SHSE: 600287)最近的表現,很難感到興奮,當時的股票在過去三個月中下跌了31%。鑑於從長遠來看,股票價格通常由公司的基本面驅動,在這種情況下,基本面看起來相當疲軟,我們決定研究該公司的關鍵財務指標。具體而言,我們決定在本文中研究江蘇舜天的投資回報率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. 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,它用於評估公司相對於其股權資本的盈利能力。
How Do You Calculate Return On Equity?
你如何計算股本回報率?
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 Jiangsu Sainty is:
因此,根據上述公式,江蘇舜天的 ROE 爲:
6.9% = CN¥134m ÷ CN¥1.9b (Based on the trailing twelve months to September 2023).
6.9% = 1.34億元人民幣 ÷ 19億元人民幣(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. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.07.
“回報” 是過去十二個月的稅後收入。因此,這意味着公司每投資1元人民幣,公司就會產生0.07元人民幣的利潤。
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?
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. 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.
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。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 Jiangsu Sainty's Earnings Growth And 6.9% ROE
江蘇舜天盈利增長和6.9%的投資回報率的並排比較
On the face of it, Jiangsu Sainty's ROE is not much to talk about. However, given that the company's ROE is similar to the average industry ROE of 7.4%, we may spare it some thought. But Jiangsu Sainty saw a five year net income decline of 46% over the past five years. Remember, the company's ROE is a bit low to begin with. So that's what might be causing earnings growth to shrink.
從表面上看,江蘇舜天的 ROE 沒什麼好談的。但是,鑑於該公司的投資回報率與7.4%的行業平均投資回報率相似,我們可以不加思索。但是,在過去五年中,江蘇舜天五年的淨收入下降了46%。請記住,公司的投資回報率一開始有點低。因此,這可能導致收益增長萎縮。
However, when we compared Jiangsu Sainty's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 10% in the same period. This is quite worrisome.
但是,當我們將江蘇舜天的增長與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10%。這非常令人擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240417/0-3bfe344c024cc6d25d89f625ca34dcb6-0-5e9187b1860353d3a6e58525759b0213.png/big)
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Jiangsu Sainty's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增長是股票估值的重要因素。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。然後,這可以幫助他們確定股票是面向光明還是暗淡的未來。如果你想知道江蘇舜天的估值,可以看看這個衡量其市盈率與行業相比的指標。
Is Jiangsu Sainty Efficiently Re-investing Its Profits?
江蘇舜天是否有效地將其利潤再投資?
Jiangsu Sainty has a high three-year median payout ratio of 54% (that is, it is retaining 46% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking. With only very little left to reinvest into the business, growth in earnings is far from likely. To know the 2 risks we have identified for Jiangsu Sainty visit our risks dashboard for free.
江蘇舜天的三年派息率中位數很高,爲54%(也就是說,它保留了46%的利潤)。這表明該公司將大部分利潤作爲股息支付給股東。這在某種程度上解釋了其收益爲何萎縮。由於對該業務的再投資所剩無幾,收益增長的可能性很小。要了解我們爲江蘇舜天確定的兩種風險,請免費訪問我們的風險儀表板。
Moreover, Jiangsu Sainty has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth.
此外,江蘇舜天已經派發股息至少十年或更長時間,這表明管理層一定已經意識到股東更喜歡分紅而不是收益增長。
Summary
摘要
Overall, we would be extremely cautious before making any decision on Jiangsu Sainty. The company has seen a lack of earnings growth as a result of retaining very little profits and whatever little it does retain, is being reinvested at a very low rate of return. So far, we've only made a quick discussion around the company's earnings growth. So it may be worth checking this free detailed graph of Jiangsu Sainty's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance.
總的來說,在對江蘇舜天做出任何決定之前,我們會非常謹慎。由於保留的利潤很少,該公司一直缺乏收益增長,無論保留的利潤很少,都以非常低的回報率進行再投資。到目前爲止,我們僅就公司的收益增長進行了簡短的討論。因此,可能值得查看這張免費的江蘇舜天過去收益以及收入和現金流的詳細圖表,以更深入地了解該公司的業績。
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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。