Zhejiang Xinhua Chemical Co.,Ltd (SHSE:603867) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Zhejiang Xinhua Chemical Co.,Ltd (SHSE:603867) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Zhejiang Xinhua ChemicalLtd (SHSE:603867) has had a rough three months with its share price down 17%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Zhejiang Xinhua ChemicalLtd's ROE.
浙江新華化工股份有限公司（SHSE:603867）近三個月股價下跌17%。然而，仔細研究其健康的財務狀況可能會使您重新考慮。鑑於基本面通常是長期市場結果的驅動力，因此值得關注該公司。本文決定重點關注浙江新華化工有限公司的 roe。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
對於股東來說，股東回報率（ROE）是一個重要的考慮因素，因爲它告訴股東他們的資本被有效地再投資了多少。換句話說，它是一個衡量公司股東提供的資本回報率的盈利能力比率。
How To Calculate Return On Equity?
如何計算股東權益報酬率？
The formula for return on equity is:
權益回報率的計算公式是：
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 Zhejiang Xinhua ChemicalLtd is:
那麼，根據上述公式，浙江新華化工股份有限公司的 roe 爲:
12% = CN¥292m ÷ CN¥2.5b (Based on the trailing twelve months to March 2024).
12% = CN¥29200萬 ÷ CN¥25億 (基於截至2024年3月的最近十二個月)。
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.12 in profit.
“回報”是每年的利潤。另一種思考方式是，該公司能夠在每元1元的淨資產中賺取0.12元的利潤。
What Has ROE Got To Do With Earnings Growth?
ROE與盈利增長有什麼關係？
So far, we've learned that ROE is a measure of a company's profitability. 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.
到目前爲止，我們已經了解了ROE是衡量公司盈利能力的一種指標。根據公司選擇重新投資或“保留”的利潤數量，我們能夠評估公司未來產生利潤的能力。一般而言，其他條件相等的情況下，具有高股東回報率和利潤保留能力的公司比不具備這些屬性的公司具有更高的增長率。
A Side By Side comparison of Zhejiang Xinhua ChemicalLtd's Earnings Growth And 12% ROE
對比浙江新華化工股份有限公司的收益增長和12%的 roe。
At first glance, Zhejiang Xinhua ChemicalLtd seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 6.3%. This probably laid the ground for Zhejiang Xinhua ChemicalLtd's moderate 16% net income growth seen over the past five years.
乍一看，浙江新華化工股份有限公司似乎有一個不錯的 roe。此外，該公司的 roe 與行業平均水平6.3%相比也非常優良。這可能爲浙江新華化工股份有限公司過去五年中適度的16%的淨利潤增長奠定了基礎。
Next, on comparing with the industry net income growth, we found that Zhejiang Xinhua ChemicalLtd's growth is quite high when compared to the industry average growth of 7.9% in the same period, which is great to see.
接下來，我們將浙江新華化工股份有限公司的淨利潤增長與行業平均水平相比較，發現其相對行業平均水平7.9%的增長非常高，這是一個好的跡象。
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. 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 Zhejiang Xinhua ChemicalLtd is trading on a high P/E or a low P/E, relative to its industry.
收益增長是股票估值的一項重要因素。投資者需要判斷的下一個問題是預期的收益增長，或其缺乏，是否已經被納入股價之中。這有助於他們判斷股票是迎來光明未來還是黯淡前景。預期收益增長的一個很好的指標是市盈率，它根據股票的收益前景確定市場願意支付的價格。因此，您可能需要檢查一下與行業相比，浙江新華化工股份有限公司的市盈率是高還是低。
Is Zhejiang Xinhua ChemicalLtd Using Its Retained Earnings Effectively?
浙江新華化工股份有限公司是否有效利用留存收益？
Zhejiang Xinhua ChemicalLtd has a healthy combination of a moderate three-year median payout ratio of 33% (or a retention ratio of 67%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.
浙江新華化工股份有限公司有一個適度的三年中位數支付比率爲33%（或留存比率爲67%）和一定量收益的健康組合，正如我們上面所看到的，這意味着公司一直在有效地利用其利潤。
Besides, Zhejiang Xinhua ChemicalLtd has been paying dividends over a period of five years. This shows that the company is committed to sharing profits with its shareholders.
此外，浙江新華化工股份有限公司在過去五年中一直在支付股息。這表明該公司致力於與其股東分享利潤。
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 feel that Zhejiang Xinhua ChemicalLtd's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總體而言，我們認爲浙江新華化工股份有限公司的表現相當不錯。特別是，看到該公司大力投資業務，並伴隨高回報率，其收益也隨之呈現相當大的增長，我們感到非常欣慰。然而，最新的行業分析師預測顯示，該公司的收益預計將加速增長。關於該公司最新的分析師預測的更多信息，請查看該公司的分析師預測可視化。
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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.
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者，發送電子郵件至editorial-team (at) simplywallst.com。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。