Is The Market Rewarding NetDragon Websoft Holdings Limited (HKG:777) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
Is The Market Rewarding NetDragon Websoft Holdings Limited (HKG:777) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
With its stock down 11% over the past month, it is easy to disregard NetDragon Websoft Holdings (HKG:777). It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. Specifically, we decided to study NetDragon Websoft Holdings' ROE in this article.
最近一個月,淨龍網絡(HKG:777)的股價下跌了11%,很容易忽略此股。市場可能完全忽略了該公司基本面的積極因素,更加關注其負面因素。股票價格通常受公司長期的財務表現驅動,因此我們決定更加關注該公司的財務表現。具體來說,我們決定在本文中研究淨龍網絡的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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即淨資產收益率,是一種評估公司如何有效地從股東手中獲取投資回報的有用工具。換句話說,它是一種盈利能力比率,衡量公司股東提供的資本的回報率。
How Is ROE Calculated?
淨資產收益率怎麼計算?
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 NetDragon Websoft Holdings is:
因此,根據上述公式,淨龍網絡的ROE爲:
7.2% = CN¥447m ÷ CN¥6.2b (Based on the trailing twelve months to December 2023).
7.2% = CN¥4400萬 ÷ CN¥62億(基於截至2023年12月的過去十二個月)。
The 'return' is the yearly profit. That means that for every HK$1 worth of shareholders' equity, the company generated HK$0.07 in profit.
“回報”是每年的利潤。這意味着,對於每港元的股東權益,公司創造了0.07港元的利潤。
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。
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
到目前爲止,我們已經了解到ROE衡量公司如何高效地生成利潤。現在我們需要評估公司以後的增長潛力,即公司重新投資或“保留”的利潤。其他條件相同的情況下,同時具有較高的股權回報率和較高的利潤保留的公司通常是相對於不具備相同特點的公司而言增長率更高的公司。
NetDragon Websoft Holdings' Earnings Growth And 7.2% ROE
淨龍網絡的盈利增長和7.2% ROE
On the face of it, NetDragon Websoft Holdings' ROE is not much to talk about. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 10%. As a result, NetDragon Websoft Holdings reported a very low income growth of 2.8% over the past five years.
表面上看,淨龍網絡的ROE並不值得一提。我們將該公司的ROE與更廣泛的行業進行比較,但很失望地發現,該公司的ROE低於行業平均水平10%。因此,過去五年淨龍網絡報告的收入增長非常低,僅爲2.8%。
As a next step, we compared NetDragon Websoft Holdings' net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 19% in the same period.
接下來,我們將淨龍網絡的淨收入增長與行業進行比較,但很失望地發現,該公司的增長低於同期行業平均增長19%。
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Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). 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 NetDragon Websoft Holdings''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是股票估值的重要因素。投資者知道市場是否已經將公司預期的盈利增長(或下降)定價。通過這樣做,他們將知道股票是否進入了清晰的藍色水域,還是即將進入泥濘的水域。如果您想了解淨龍網絡的估值,請查看其市盈率與行業的比較。
Is NetDragon Websoft Holdings Making Efficient Use Of Its Profits?
淨龍網絡是否高效利用其利潤?
While NetDragon Websoft Holdings has a decent three-year median payout ratio of 34% (or a retention ratio of 66%), it has seen very little growth in earnings. So there could be some other explanation in that regard. For instance, the company's business may be deteriorating.
儘管淨龍網絡有着不錯的三年平均派息比率,爲34%(留存比率爲66%),但它的收益增長很少。因此,可能有其他解釋。例如,該公司的業務可能正在惡化。
Moreover, NetDragon Websoft Holdings has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 22% over the next three years. The fact that the company's ROE is expected to rise to 16% over the same period is explained by the drop in the payout ratio.
此外,淨龍網絡已經連續十年或更長時間派發股息,這表明管理層必須認爲股東更喜歡分紅派息而不是收益增長。現有的分析師估計顯示,該公司未來的派息比率預計將下降至22%。該公司的ROE預計在同期內上升至16%,這是由於派息比率的下降所解釋的。
Conclusion
結論
Overall, we have mixed feelings about NetDragon Websoft Holdings. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. 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,我們對淨龍網絡持有不同的看法。雖然公司具有高投資回報率,但較低的ROE意味着所有的投資回報都沒有給其投資者帶來任何好處。此外,這還對盈利增長產生了負面影響。即便如此,最新的行業分析師預測顯示,該公司的盈利預計將加速增長。想了解更多關於該公司未來盈利增長預測的信息,請查閱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。