Zhejiang Zhongcheng Packing Material Co., Ltd. (SZSE:002522) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
Zhejiang Zhongcheng Packing Material Co., Ltd. (SZSE:002522) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
With its stock down 19% over the past three months, it is easy to disregard Zhejiang Zhongcheng Packing Material (SZSE:002522). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to Zhejiang Zhongcheng Packing Material's ROE today.
在過去三個月中,其庫存下降了19%,很容易忽視浙江衆成包裝材料(SZSE:002522)。但是,該公司的基本面看起來相當不錯,長期財務狀況通常與未來的市場價格走勢一致。特別是,我們今天將關注浙江衆成包裝材料的投資回報率。
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 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 Zhejiang Zhongcheng Packing Material is:
因此,根據上述公式,浙江衆成包裝材料的投資回報率爲:
3.0% = CN¥68m ÷ CN¥2.3b (Based on the trailing twelve months to December 2023).
3.0% = 6800萬元人民幣 ÷ 23億元人民幣(基於截至2023年12月的過去十二個月)。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.03.
“回報” 是每年的利潤。因此,這意味着其股東每投資1元人民幣,公司就會產生0.03CN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. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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。根據公司選擇將多少利潤進行再投資或 “保留”,我們便能夠評估公司未來創造利潤的能力。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。
Zhejiang Zhongcheng Packing Material's Earnings Growth And 3.0% ROE
浙江衆成包裝材料的收益增長和3.0%的投資回報率
As you can see, Zhejiang Zhongcheng Packing Material's ROE looks pretty weak. Even compared to the average industry ROE of 7.1%, the company's ROE is quite dismal. However, the moderate 16% net income growth seen by Zhejiang Zhongcheng Packing Material over the past five years is definitely a positive. We reckon that there could be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.
如你所見,浙江衆成包裝材料的投資回報率看起來相當疲軟。即使與7.1%的行業平均投資回報率相比,該公司的投資回報率也相當慘淡。但是,浙江衆成包裝材料在過去五年中實現了16%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,該公司的派息率較低或管理效率很高。
As a next step, we compared Zhejiang Zhongcheng Packing Material's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%.
下一步,我們將浙江衆成包裝材料的淨收入增長與該行業進行了比較,令人高興的是,我們發現該公司的增長高於行業平均增長11%。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240418/0-5fec504a437fae8a004ca9b3a1c0ce4a-0-85f5742219abfa6d3df847a29089f691.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 Zhejiang Zhongcheng Packing Material 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,您可能需要檢查一下相對於同行業而言,浙江衆成包裝材料的市盈率是高還是低。
Is Zhejiang Zhongcheng Packing Material Using Its Retained Earnings Effectively?
浙江衆成包裝材料是否有效地使用了其留存收益?
Zhejiang Zhongcheng Packing Material's three-year median payout ratio to shareholders is 22% (implying that it retains 78% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business.
浙江衆成包裝材料的三年股東派息率中位數爲22%(這意味着其保留了78%的收入),處於較低水平,因此管理層似乎正在大量再投資利潤以發展其業務。
Additionally, Zhejiang Zhongcheng Packing Material has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.
此外,浙江衆成包裝材料已在至少十年內派發了股息,這意味着該公司非常認真地與股東分享利潤。
Conclusion
結論
Overall, we feel that Zhejiang Zhongcheng Packing Material certainly does have some positive factors to consider. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. 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. You can see the 2 risks we have identified for Zhejiang Zhongcheng Packing Material by visiting our risks dashboard for free on our platform here.
總的來說,我們認爲浙江衆成包裝材料確實有一些積極的因素需要考慮。儘管回報率很低,但由於對業務進行了大量再投資,該公司的收益增長令人印象深刻。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。您可以訪問我們的 2 種風險來查看我們爲浙江衆成包裝材料確定的兩種風險 風險儀表板 在我們的平台上免費使用。
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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。