Shandong Weida Machinery Co., Ltd.'s (SZSE:002026) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Shandong Weida Machinery Co., Ltd.'s (SZSE:002026) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Shandong Weida Machinery (SZSE:002026) has had a great run on the share market with its stock up by a significant 19% over the last week. 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. In this article, we decided to focus on Shandong Weida Machinery's ROE.
山東威達機械(SZSE:002026)在股市上表現良好,其股票上週大幅上漲了19%。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。在本文中,我們決定重點關注山東威達機械的投資回報率。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
How Do You Calculate Return On Equity?
你如何計算股本回報率?
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 Shandong Weida Machinery is:
因此,根據上述公式,山東威達機械的投資回報率爲:
6.4% = CN¥225m ÷ CN¥3.5b (Based on the trailing twelve months to March 2024).
6.4% = 2.25億元人民幣 ÷ 35億元人民幣(基於截至2024年3月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.06 in profit.
“申報表” 是過去十二個月的稅後收入金額。這意味着,每獲得價值1元人民幣的股東權益,公司就會產生0.06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. 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. 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。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。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。
Shandong Weida Machinery's Earnings Growth And 6.4% ROE
山東威達機械的收益增長和6.4%的投資回報率
When you first look at it, Shandong Weida Machinery's ROE doesn't look that attractive. However, given that the company's ROE is similar to the average industry ROE of 7.4%, we may spare it some thought. Even so, Shandong Weida Machinery has shown a fairly decent growth in its net income which grew at a rate of 18%. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看,山東威達機械的投資回報率看起來並不那麼吸引人。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。即便如此,山東威達機械的淨收入仍表現出相當不錯的增長,增長了18%。鑑於投資回報率略低,可能還有其他一些方面推動這種增長。例如,該公司的派息率較低或管理效率很高。
Next, on comparing with the industry net income growth, we found that Shandong Weida Machinery's growth is quite high when compared to the industry average growth of 11% in the same period, which is great to see.
接下來,與行業淨收入增長相比,我們發現,與同期行業平均增長11%相比,山東威達機械的增長相當高,這真是太好了。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240424/0-458fd3017ad94a55f1754c48347e57df-0-063d2f5f02c66a0e0c8d652bffe6a618.png/big)
Earnings growth is an important metric to consider when valuing a stock. 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. 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 Shandong Weida Machinery is trading on a high P/E or a low P/E, relative to its industry.
收益增長是對股票進行估值時要考慮的重要指標。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。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,您可能需要檢查山東威達機械相對於其行業是高市盈率還是低市盈率。
Is Shandong Weida Machinery Efficiently Re-investing Its Profits?
山東威達機械是否有效地將其利潤再投資?
In Shandong Weida Machinery's case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 17% (or a retention ratio of 83%), which suggests that the company is investing most of its profits to grow its business.
就山東威達機械而言,其可觀的收益增長可以用其三年中位數派息率低至17%(或83%的留存率)來解釋,這表明該公司正在將大部分利潤投資於業務增長。
Besides, Shandong Weida Machinery 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,山東威達機械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 Shandong Weida Machinery certainly does have some positive factors to consider. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. 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.
總的來說,我們認爲山東威達機械確實有一些積極的因素需要考慮。儘管回報率很低,但該公司將其利潤的很大一部分再投資於業務這一事實無疑促進了其高收益增長。話雖如此,最新的行業分析師預測顯示,該公司的收益增長預計將放緩。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。