Is The Market Rewarding Kinco Automation (Shanghai) Co.,Ltd (SHSE:688160) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
Is The Market Rewarding Kinco Automation (Shanghai) Co.,Ltd (SHSE:688160) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
It is hard to get excited after looking at Kinco Automation (Shanghai)Ltd's (SHSE:688160) recent performance, when its stock has declined 24% over the past three months. It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. In this article, we decided to focus on Kinco Automation (Shanghai)Ltd's ROE.
看到Kinco Automation (Shanghai)Ltd (SHSE:688160)近期的表現,股價在過去三個月下跌了24%後,很難感到興奮。市場可能忽略了該公司不同的財務表現,並決定偏向負面情緒。長期的基本面通常是驅動市場結果的因素,所以值得密切關注。在本文中,我們決定關注Kinco Automation (Shanghai)Ltd的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東權益回報率ROE是測試公司增值能力和管理股東投資的有效性的指標。更簡單地說,它衡量公司在股東權益中的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
The formula for ROE is:
roe的公式是:
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 Kinco Automation (Shanghai)Ltd is:
因此,根據上述公式,Kinco Automation (Shanghai)Ltd的ROE爲:
7.6% = CN¥58m ÷ CN¥764m (Based on the trailing twelve months to March 2024).
7.6% =CN¥5800萬÷CN¥76400萬(基於過去12個月至2024年3月的數據)。
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.08.
「回報」指的是公司的去年收益。這意味着對於股東的每CN¥1的投資,公司可以獲得CN¥0.08的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經了解到roe衡量公司生成利潤的效率。根據公司再投資或「保留」的利潤比例及其有效性,我們能夠評估公司的收益增長潛力。在其他一切保持不變的情況下,roe和利潤保留率越高,公司的增長率就越高,相比於那些不一定擁有這些特性的公司。
Kinco Automation (Shanghai)Ltd's Earnings Growth And 7.6% ROE
金科自動化(上海)有限公司的盈利增長和7.6%的roe
On the face of it, Kinco Automation (Shanghai)Ltd's ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 6.3%. On the other hand, Kinco Automation (Shanghai)Ltd reported a fairly low 4.8% net income growth over the past five years. Bear in mind, the company's ROE is not very high . Hence, this does provide some context to low earnings growth seen by the company.
從表面上看,金科自動化(上海)有限公司的roe談不上多少。然而,進一步的研究表明,公司的roe與6.3%的行業平均水平相似。另一方面,金科自動化(上海)有限公司過去五年的淨利潤增長相對較低,爲4.8%。請記住,該公司的roe並不是非常高。因此,這爲公司所見的低收益增長提供了一些背景。
As a next step, we compared Kinco Automation (Shanghai)Ltd's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 6.4% in the same period.
接下來,我們將金科自動化(上海)有限公司的淨利潤增長與行業進行了比較,並失望地發現,公司在同期的增長率低於6.4%的行業平均水平。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240614/0-51edb807fef72441bed0d5d7aeed2434-0-cc24088cca1e461f86286e68db6b171e.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 Kinco Automation (Shanghai)Ltd is trading on a high P/E or a low P/E, relative to its industry.
附加價值於一家公司的基礎在很大程度上與其盈利增長密切相關。接下來,投資者需要確定的是預期的盈利增長,或者缺乏盈利是否已經內置在股票價格中。這樣做將有助於他們確定股票的未來是否看起來有前途或不祥。一個很好的預期盈利增長指標是市盈率,它根據公司的盈利前景決定市場願意支付的股票價格。因此,你可能想查看金科自動化(上海)有限公司的市盈率高還是低,相對於其行業而言。
Is Kinco Automation (Shanghai)Ltd Efficiently Re-investing Its Profits?
Kinco Automation (Shanghai)Ltd是否有效地再投資其利潤?
While Kinco Automation (Shanghai)Ltd has a decent three-year median payout ratio of 37% (or a retention ratio of 63%), it has seen very little growth in earnings. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
雖然金科自動化(上海)有限公司有一個不錯的三年中位數股息支付比率爲37%(或留存比率爲63%),但其收益增長几乎沒有增長。所以這裏可能存在其他因素,可能會阻礙增長。例如,該業務面臨了一些阻力。
Moreover, Kinco Automation (Shanghai)Ltd has been paying dividends for four years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer dividends over earnings growth.
此外,金科自動化(上海)有限公司已經支付分紅派息四年,這是相當長的一段時間,這表明管理層必須認爲股東更喜歡分紅派息而不是盈利增長。
Conclusion
結論
Overall, we have mixed feelings about Kinco Automation (Shanghai)Ltd. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. Our risks dashboard will have the 1 risk we have identified for Kinco Automation (Shanghai)Ltd.
總的來說,我們對金科自動化(上海)有限公司有複雜的感受。雖然該公司具有高比率的再投資率,但低的roe意味着所有的再投資並沒有爲其投資人帶來任何好處,而且,其對收益增長產生了負面影響。總之,我們會謹慎地對待這家公司的風險配置。我們的風險儀表板將爲金科自動化(上海)有限公司識別出的1種風險。
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