China Security Co., Ltd.'s (SHSE:600654) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
China Security Co., Ltd.'s (SHSE:600654) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity China Security (SHSE:600654) has had a rough three months with its share price down 19%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. In this article, we decided to focus on China Security's ROE.
st中安（SHSE：600654）的股價在過去三個月中跌了19％。然而，股票價格通常是由公司長期的財務狀況推動的，在這種情況下，看起來相當可觀。本文將重點關注st中安的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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股東必須考慮股本回報率或ROE，因爲它告訴他們公司如何有效地重新投資他們的資本。 簡而言之，ROE顯示每美元股東投資所產生的利潤。
How Do You Calculate Return On Equity?
怎樣計算ROE?
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 China Security is:
據上述公式，st中安的roe爲:
7.3% = CN¥117m ÷ CN¥1.6b (Based on the trailing twelve months to March 2024).
7.3％=CN¥117m÷CN¥1.6b（截至2024年3月的過去十二個月）。
The 'return' is the yearly profit. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.07 in profit.
“回報”是每年的利潤。一個概念是，對於每1元的股東資本，公司獲得0.07元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
既然我們已經確定ROE是一種有效的利潤生成標準，用於評估公司未來的盈利能力，我們現在需要評估公司“保留”爲未來增長而重新投資的利潤多少，這使我們對公司的增長潛力有了一個了解。一般而言，在其他條件相等的情況下，ROE和利潤留存高的公司，增長率比沒有這些屬性的公司要高。
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. 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是公司利潤能力的一個衡量標準，現在我們需要評估公司再投資或“保留”的利潤，以此來了解公司的增長潛力。假設其他所有因素保持不變，roe和利潤保留率越高，公司的增長速度就越高，相對於不一定具備這些特徵的公司而言。
A Side By Side comparison of China Security's Earnings Growth And 7.3% ROE
st中安盈利增長和7.3％ROE的同側比較
On the face of it, China Security'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%. Particularly, the exceptional 29% net income growth seen by China Security over the past five years is pretty remarkable. 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.
st中安的ROE表面上看起來並不起眼。然而，更仔細的研究表明，該公司的ROE與行業平均水平6.3％相當。特別是，在過去5年中st中安出現了29％的淨利潤增長，這非常值得稱道。鑑於ROE略低，很可能存在推動該增長的其他因素。例如，該公司具有低的股息支付比率或者在業務上被高效管理。
We then compared China Security's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 6.4% in the same 5-year period.
然後，我們將st中安的淨利潤增長與行業進行了比較，並且很高興看到該公司的增長數字在相同的5年時間段內比行業的6.4％增長率高。
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. Is China Security fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增長是股票估值中的重要因素。投資者需要判斷的是預期盈利增長是否已經體現在股價中，這有助於他們判斷股票未來是光明還是黯淡。相較於其他公司，st中安是否公平地價值？這3種估值方法可能會幫助您做出決定。
Is China Security Making Efficient Use Of Its Profits?
st中安是否有效地利用其利潤？
China Security doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.
st中安不向股東支付常規分紅派息，這意味着該公司一直在將其所有利潤重新投資到業務中。這很可能推動了上述高增長的盈利數字。
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 China Security has some positive attributes. 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.
總的來說，我們認爲st中安具有一些積極特質。儘管其回報率低，但該公司將很高的利潤部分重新投資到業務中，無疑爲其高增長做出了貢獻。
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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。
