Has CECEP Environmental Protection Co., Ltd.'s (SZSE:300140) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Has CECEP Environmental Protection Co., Ltd.'s (SZSE:300140) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
CECEP Environmental Protection's (SZSE:300140) stock is up by a considerable 7.0% 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. In this article, we decided to focus on CECEP Environmental Protection's ROE.
過去一個月,節能環保(SZSE:300140)股價上漲了7.0%。我們想知道公司的財務狀況在這個價格變化中是否扮演了什麼角色,因爲一家公司的長期基本面通常能決定市場的結果。在本文中,我們將重點關注節能環保的roe。
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roe是評估公司管理層如何有效利用公司資本的關鍵指標。簡而言之,ROE顯示每美元股東投資所產生的利潤。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤(從持續經營中獲得)÷ 股東權益
So, based on the above formula, the ROE for CECEP Environmental Protection is:
因此,根據上述公式,節能環保公司的roe爲:
5.6% = CN¥770m ÷ CN¥14b (Based on the trailing twelve months to March 2024).
5.6%= CN¥77000萬 ÷ CN¥140億(基於過去12個月至2024年3月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.06 in profit.
“回報”是企業過去一年賺取的收入。一個概念就是對於每一元股東投入的資本,公司賺取了6分錢的利潤。
Why Is ROE Important For Earnings Growth?
ROE對於盈利增長的重要性是什麼?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 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.
到目前爲止,我們已經了解到ROE衡量公司如何高效地生成利潤。現在我們需要評估公司以後的增長潛力,即公司重新投資或“保留”的利潤。其他條件相同的情況下,同時具有較高的股權回報率和較高的利潤保留的公司通常是相對於不具備相同特點的公司而言增長率更高的公司。
A Side By Side comparison of CECEP Environmental Protection's Earnings Growth And 5.6% ROE
對比節能環保的盈利增長和5.6%的roe
When you first look at it, CECEP Environmental Protection's ROE doesn't look that attractive. However, its ROE is similar to the industry average of 6.9%, so we won't completely dismiss the company. Looking at CECEP Environmental Protection's exceptional 51% five-year net income growth in particular, we are definitely impressed. 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.
剛開始看,節能環保的roe看起來並不那麼有吸引力。然而,它的roe與6.9%的行業平均水平相似,因此我們不會完全忽視該公司。特別是,我們對節能環保過去5年淨利潤增長率51%倍感印象深刻。考慮到roe並不特別高,我們認爲可能還有其他因素影響着公司的增長。例如,該公司的派息率較低或者被有效地管理着。
Next, on comparing with the industry net income growth, we found that CECEP Environmental Protection's growth is quite high when compared to the industry average growth of 9.6% in the same period, which is great to see.
接下來,與行業的淨利潤增長相比較,我們發現節能環保的增長相當高,超過了同一時期9.6%的行業平均水平,這是非常好的。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240523/0-509fe28b9ebd995ece400b54613631a3-0-43479a6091609b442bf7c6f5cef134a8.png/big)
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. 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 CECEP Environmental Protection is trading on a high P/E or a low P/E, relative to its industry.
盈利增長是股票估值的重要因素。接下來需要判斷的是,預期的盈利增長是否已經被計入股價,從而了解股票是否面臨着明確的風險或者麻煩。一個好的預期盈利增長指標是市盈率(P/E),該指標根據公司的盈利前景確定市場願意支付多少價格買入該股票。因此,您可能想要檢查節能環保是否以較高的P/E或較低的P/E交易,相對於其行業而言。
Is CECEP Environmental Protection Using Its Retained Earnings Effectively?
節能環保是否有效地利用了其保留利潤?
Given that CECEP Environmental Protection doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
考慮到節能環保不向股東支付定期股息,我們推斷該公司一直在重新投資所有利潤以擴大業務。
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
On the whole, we do feel that CECEP Environmental Protection has some positive attributes. 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. Our risks dashboard would have the 2 risks we have identified for CECEP Environmental Protection.
總體而言,我們認爲節能環保具有一些積極因素。儘管roe較低,但公司高比例的再投資的績效下,其收益仍實現了顯著增長。雖然我們不會完全忽視該公司,但我們需要確定該業務的風險方面,以做出更明智的決策。我們的風險儀表板包括我們爲節能環保確定的2個風險。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。