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Is Yunnan Nantian Electronics Information Co.,Ltd.'s (SZSE:000948) Latest Stock Performance A Reflection Of Its Financial Health?

Is Yunnan Nantian Electronics Information Co.,Ltd.'s (SZSE:000948) Latest Stock Performance A Reflection Of Its Financial Health?

南天信息股份有限公司(SZSE:000948)最新股票表現反映了其財務狀況嗎?
Simply Wall St ·  07/02 18:12

Yunnan Nantian Electronics InformationLtd (SZSE:000948) has had a great run on the share market with its stock up by a significant 7.9% over the last week. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to Yunnan Nantian Electronics InformationLtd's ROE today.

雲南南天電子信息股份有限公司(SZSE:000948)在股市上表現良好,股價在上週大幅上漲了7.9%。由於市場通常會爲一家公司的長期基本面買單,因此我們決定研究該公司的關鍵績效指標,以查看它們是否可能影響市場。特別是,我們今天將關注雲南南天電子信息股份有限公司的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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.

股東權益回報率(roe)是一種關鍵指標,用於評估公司管理層如何有效利用公司資本。更簡單地說,它衡量了公司相對股東權益的盈利能力。

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 Yunnan Nantian Electronics InformationLtd is:

因此,根據上述公式,雲南南天電子信息股份有限公司的roe爲:

6.4% = CN¥172m ÷ CN¥2.7b (Based on the trailing twelve months to March 2024).

6.4%=CN¥17200萬÷CN¥27億(基於截至2024年3月的過去十二個月)。

The 'return' is the profit over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.06.

「回報」是指過去十二個月的利潤。這意味着對於每1元投資,公司可以產生CN¥0.06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. 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. 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,我們已經知道ROE測量公司如何高效地生成利潤。基於公司選擇重新投資或「保留」其利潤的比例,我們能夠評估公司未來生成利潤的能力。假設其他所有因素保持不變,則ROE和利潤保留率越高,公司的增長率也越高,與不一定具備這些特徵的公司相比。

Yunnan Nantian Electronics InformationLtd's Earnings Growth And 6.4% ROE

Yunnan Nantian Electronics InformationLtd has a low three-year median payout ratio of 16%, meaning that the company retains the remaining 84% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.

At first glance, Yunnan Nantian Electronics InformationLtd's ROE doesn't look very promising. However, the fact that the its ROE is quite higher to the industry average of 5.2% doesn't go unnoticed by us. This certainly adds some context to Yunnan Nantian Electronics InformationLtd's moderate 19% net income growth seen over the past five years. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. Therefore, the growth in earnings could also be the result of other factors. Such as- high earnings retention or the company belonging to a high growth industry.

As a next step, we compared Yunnan Nantian Electronics InformationLtd's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 3.7%.

Moreover, Yunnan Nantian Electronics InformationLtd is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.

past-earnings-growth
SZSE:000948 Past Earnings Growth July 2nd 2024
Summary

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. 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 Yunnan Nantian Electronics InformationLtd is trading on a high P/E or a low P/E, relative to its industry.

Is Yunnan Nantian Electronics InformationLtd Efficiently Re-investing Its Profits?

雲南南天電子信息股份有限公司是否有效地再投資其利潤?

Yunnan Nantian Electronics InformationLtd has a low three-year median payout ratio of 16%, meaning that the company retains the remaining 84% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.

雲南南天電子信息股份有限公司的三年平均股息比率很低,爲16%,這意味着公司保留了其利潤的其餘84%。這表明管理層正在將大部分利潤再投資以發展業務。

Moreover, Yunnan Nantian Electronics InformationLtd is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.

此外,從其至少十年支付股息的長期歷史來看,雲南南天電子信息股份有限公司決心繼續與股東分享利潤。

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。

In total, we are pretty happy with Yunnan Nantian Electronics InformationLtd's performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business. You can see the 2 risks we have identified for Yunnan Nantian Electronics InformationLtd by visiting our risks dashboard for free on our platform here.

風險儀表板在瀏覽完所有相關因素確定股票購買價格後,ROE是一個有用的公司質量指標。此外,還需要考慮其他因素,例如未來盈利增長以及未來需要投入多少投資。因此,我認爲值得查看這份免費的詳細收益、營收和現金流圖表。

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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。或電郵 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

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