Wuxi Unicomp Technology Co., Ltd.'s (SHSE:688531) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Wuxi Unicomp Technology Co., Ltd.'s (SHSE:688531) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
With its stock down 21% over the past month, it is easy to disregard Wuxi Unicomp Technology (SHSE:688531). But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. In this article, we decided to focus on Wuxi Unicomp Technology's ROE.
最近一個月股價下跌21%,讓無錫聯康科技(SHSE:688531)變得不被重視,但如果您仔細觀察,您可能會發現它的關鍵財務指標看起來相當不錯,這意味着長期來看可能會有潛在股票上漲的機會,因爲市場通常會獎勵更具有韌性的長期基本面。在本文中,我們決定關注無錫聯康科技的roe。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
roe指股東權益回報率,是一種有用的工具,用於評估公司如何有效地從股東獲得的投資中產生回報。簡單來說,這衡量了一家公司相對於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 Wuxi Unicomp Technology is:
因此,根據上述公式,無錫常合科技的roe爲:
4.1% = CN¥134m ÷ CN¥3.3b (Based on the trailing twelve months to March 2024).
4.1%=CN¥1.34億÷CN¥33億(根據截至2024年3月的過去12個月計算)
The 'return' is the amount earned after tax 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¥0.04.
「回報率」是過去十二個月稅後收益。這意味着,對於每個股東投資的人民幣1元,公司產生了人民幣0.04元的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定ROE作爲一個高效的盈利規模可以評估公司未來的收益。根據公司選擇再投資或保留多少利潤,我們可以評估公司未來盈利的能力。假設其他所有條件均保持不變,ROE和利潤留存率越高,相對於沒有這些特點的公司,公司的增長率就越高。
A Side By Side comparison of Wuxi Unicomp Technology's Earnings Growth And 4.1% ROE
無錫優傲科技向股東支付的三年中位數分紅比率爲24%,相當低。這意味着公司留存了76%的利潤。看起來無錫優傲科技正在通過大量再投資利潤來發展業務,這體現在其盈利增長中。
As you can see, Wuxi Unicomp Technology's ROE looks pretty weak. Even when compared to the industry average of 6.3%, the ROE figure is pretty disappointing. Despite this, surprisingly, Wuxi Unicomp Technology saw an exceptional 38% net income growth over the past five years. Therefore, there could be other reasons behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
Next, on comparing with the industry net income growth, we found that Wuxi Unicomp Technology's growth is quite high when compared to the industry average growth of 6.4% in the same period, which is great to see.
儘管無錫優傲科技的盈利增長,但它最近才開始支付股息。很可能是公司決定用股息來給新老股東留下深刻印象。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Wuxi Unicomp Technology's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Wuxi Unicomp Technology Making Efficient Use Of Its Profits?
無錫聯康科技是否高效利用其獲利?
Wuxi Unicomp Technology's three-year median payout ratio to shareholders is 24%, which is quite low. This implies that the company is retaining 76% of its profits. So it looks like Wuxi Unicomp Technology is reinvesting profits heavily to grow its business, which shows in its earnings growth.
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.
While Wuxi Unicomp Technology has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend.
Conclusion
結論
On the whole, we do feel that Wuxi Unicomp Technology has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。