Chengdu Screen Micro-electronics CO.,LTD.'s (SHSE:688053) Dismal Stock Performance Reflects Weak Fundamentals
Chengdu Screen Micro-electronics CO.,LTD.'s (SHSE:688053) Dismal Stock Performance Reflects Weak Fundamentals
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity Chengdu Screen Micro-electronicsLTD (SHSE:688053) has had a rough three months with its share price down 18%. To decide if this trend could continue, we decided to look at its weak fundamentals as they shape the long-term market trends. Particularly, we will be paying attention to Chengdu Screen Micro-electronicsLTD's ROE today.
成都屏幕微電子股份有限公司（SHSE：688053）過去三個月股價下跌18％。爲了確定這種趨勢是否會繼續，我們決定查看其虛弱的基本面，因爲它們塑造了長期市場趨勢。特別是，我們將關注成都屏幕微電子的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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率或ROE是一項用於評估公司管理層如何利用公司資本的效率的關鍵指標。簡而言之，它用於評估公司相對於其股本資本的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率？
The formula for 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 Chengdu Screen Micro-electronicsLTD is:
因此，根據上述公式，成都屏幕微電子的roe爲：
1.3% = CN¥22m ÷ CN¥1.7b (Based on the trailing twelve months to March 2024).
1.3％= CN¥22m ÷ CN¥1.7b（基於截至2024年3月的過去12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¥0.01.
“回報”是年利潤。因此，這意味着對於其股東的每個CN¥1的投資，公司將創造CN¥0.01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. 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. 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，我們已經了解到ROE是衡量公司盈利能力的一個指標。現在我們需要評估公司再投資或“保留”未來增長所需的利潤，然後我們可以大致了解公司的增長潛力。一般來說，在其他條件相等的情況下，具有高ROE和利潤保留的公司比沒有這些屬性的公司具有更高的增長率。
A Side By Side comparison of Chengdu Screen Micro-electronicsLTD's Earnings Growth And 1.3% ROE
成都屏幕微電子的收益增長和1.3％的roe的並排比較
It is hard to argue that Chengdu Screen Micro-electronicsLTD's ROE is much good in and of itself. Not just that, even compared to the industry average of 6.3%, the company's ROE is entirely unremarkable. Therefore, Chengdu Screen Micro-electronicsLTD's flat earnings over the past five years can possibly be explained by the low ROE amongst other factors.
很難說成都屏幕微電子的roe本身很好。不僅如此，即使與行業平均水平6.3％相比，公司的roe也完全不起眼。因此，成都屏幕微電子過去五年的平坦收益可能可以通過低roe和其他因素來解釋。
We then compared Chengdu Screen Micro-electronicsLTD's net income growth with the industry and found that the average industry growth rate was 6.4% in the same 5-year period.
然後，我們將成都屏幕微電子的淨收入增長與行業進行了比較，並發現在同一5年期間，行業平均增長率爲6.4％。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is Chengdu Screen Micro-electronicsLTD fairly valued compared to other companies? These 3 valuation measures might help you decide.
給公司附加價值的基礎很大程度上與其收益增長有關。了解市場是否已經定價了公司預期的盈利增長（或下降）對於投資者來說非常重要。這樣做將幫助他們確定該股票的未來前景是光明還是黯淡。與其他公司相比，成都屏幕微電子是否被公正評估？這3個估值指標可能有所幫助。
Is Chengdu Screen Micro-electronicsLTD Using Its Retained Earnings Effectively?
成都屏幕微電子是否有效地利用其留存收益？
The high three-year median payout ratio of 98% (meaning, the company retains only 1.6% of profits) for Chengdu Screen Micro-electronicsLTD suggests that the company's earnings growth was miniscule as a result of paying out a majority of its earnings.
成都屏幕微電子的高三年平均派息比率爲98％（意味着公司僅留下1.6％的利潤），這意味着該公司的盈利增長微不足道，因爲它支付了大部分利潤。
Conclusion
結論
Overall, we would be extremely cautious before making any decision on Chengdu Screen Micro-electronicsLTD. Specifically, it has shown quite an unsatisfactory performance as far as earnings growth is concerned, and a poor ROE and an equally poor rate of reinvestment seem to be the reason behind this inadequate performance. Up till now, we've only made a short study of the company's growth data. So it may be worth checking this free detailed graph of Chengdu Screen Micro-electronicsLTD's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance.
總體而言，在做出任何關於成都屏幕微電子的決定之前，我們都應該非常謹慎。具體而言，就收益增長而言，它的表現相當令人不滿意，而較低的roe和同樣低的再投資率似乎是造成這種不足表現的原因。到目前爲止，我們只對公司的增長數據進行了簡要的研究。因此，可以查看成都屏幕微電子過去的收益、營業收入和現金流的自由詳細圖表，以深入了解該公司的表現。
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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。
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。