Are LifeTech Scientific Corporation's (HKG:1302) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Are LifeTech Scientific Corporation's (HKG:1302) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
With its stock down 13% over the past three months, it is easy to disregard LifeTech Scientific (HKG:1302). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to LifeTech Scientific's ROE today.
股票下跌了13％，很容易忽略LifeTech Scientific (HKG:1302)。但是，股票價格通常由公司的財務長期推動，在這種情況下，財務狀況看起來相當可觀。特別是今天我們將關注LifeTech Scientific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？
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 LifeTech Scientific is:
因此，根據上述公式，LifeTech Scientific的ROE爲：
3.2% = CN¥107m ÷ CN¥3.3b (Based on the trailing twelve months to December 2023).
3.2％ = CN¥1.07億 ÷ CN¥33億（基於截至2023年12月的過去12個月）。
The 'return' refers to a company's earnings over the last year. That means that for every HK$1 worth of shareholders' equity, the company generated HK$0.03 in profit.
“回報”是指公司在上一年的收益。這意味着每港元股東權益的公司創造了HK$0.03的利潤。
What Has ROE Got To Do With Earnings Growth?
ROE與盈利增長有什麼關係？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定，roe是一個有效的利潤生成衡量標準，用於評估公司未來的盈利能力。根據公司再投資或“保留”這些利潤的比例以及這樣做的有效性，我們能夠評估公司的盈利增長潛力。假設其他所有因素保持不變，roe和利潤保留的比例越高，相對於沒有這些特徵的公司，公司的增長率就越高。
LifeTech Scientific's Earnings Growth And 3.2% ROE
LifeTech Scientific的盈利增長和3.2％的roe
As you can see, LifeTech Scientific's ROE looks pretty weak. Even compared to the average industry ROE of 8.6%, the company's ROE is quite dismal. Although, we can see that LifeTech Scientific saw a modest net income growth of 20% over the past five years. We believe that there might be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
可以看出，LifeTech Scientific的ROE看起來相當疲軟。即使與平均行業ROE的8.6％進行比較，公司的ROE也相當糟糕。儘管如此，我們可以看到LifeTech Scientific在過去五年中的淨利潤增長了20％。我們認爲可能存在其他積極影響公司收益增長的方面。例如——高收益保留或有效的管理。
As a next step, we compared LifeTech Scientific'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 11%.
作爲下一步，我們將LifeTech Scientific的淨利潤增長與行業進行了比較，令人高興的是，我們發現公司的增長高於平均行業增長11％。
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is LifeTech Scientific fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增長是股票估值的巨大因素。投資者應盡力確定預期的盈利增長或下降是否已定價。這有助於他們確定該股票是處於光明還是黯淡的未來。與其他公司相比，LifeTech Scientific的估值是否合理？這三個估值指標可能會幫助您做出決定。
Is LifeTech Scientific Using Its Retained Earnings Effectively?
LifeTech Scientific是否有效利用其保留收益？
LifeTech Scientific doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above.
LifeTech Scientific目前不支付任何定期股息，這意味着它一直將所有利潤再投資到業務中。這肯定有助於我們上面討論的不錯的盈利增長數字。
Conclusion
結論
In total, it does look like LifeTech Scientific has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
總的來說，LifeTech Scientific的業務具有一些積極因素。儘管ROE低，但以高比率再投資的情況下，公司設法實現了可觀的收益增長。最新的行業分析師預測顯示，該公司預計將保持其當前的增長率。要了解有關該公司未來盈利增長預測的更多信息，請查看有關該公司分析師預測的免費報告。
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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？對內容感到擔憂？請直接與我們聯繫。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？對內容感到擔憂？請直接與我們聯繫。或者，發送電子郵件至editorial-team@simplywallst.com。