Changchun High-Tech Industry (Group) Co., Ltd.'s (SZSE:000661) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
Changchun High-Tech Industry (Group) Co., Ltd.'s (SZSE:000661) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
It is hard to get excited after looking at Changchun High-Tech Industry (Group)'s (SZSE:000661) recent performance, when its stock has declined 18% over the past three months. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. In this article, we decided to focus on Changchun High-Tech Industry (Group)'s ROE.
最近三個月,長春高新技術產業(集團)股票下跌了18%,使人難以激動。但是,如果您仔細觀察,可能會發現其強大的財務狀況意味着該股票可能會在長期內看到價值的增長,因爲市場通常會獎勵財務狀況良好的公司。本文,着重討論長春高新技術產業(集團)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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股本回報率或roe是評估公司管理層如何有效利用公司資本的關鍵指標。簡而言之,ROE顯示每美元股東投資所產生的利潤。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
The formula for ROE is:
roe的公式是:
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 Changchun High-Tech Industry (Group) is:
所以,根據上述公式,長春高新技術產業(集團)的roe爲:
19% = CN¥4.8b ÷ CN¥26b (Based on the trailing twelve months to March 2024).
19%= CN¥48億 ÷ CN¥260億(以截至2024年3月的過去十二個月爲基礎)。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.19 in profit.
「回報」是指過去十二個月稅後賺取的金額。 一個概念上的解釋是對於每個股東的資本1元,該公司獲得0.19元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
ROE與盈利增長之間的關係是什麼?
So far, we've learned that ROE is a measure of a company's profitability. 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.
到目前爲止,我們已經了解到ROE是衡量公司盈利能力的指標。根據公司重新投資或「保留」的利潤數量及其有效性,我們能夠估計公司盈利增長潛力。假設其他一切保持不變,ROE和利潤保留率越高,相對於不一定擁有這些特徵的公司而言,公司的增長率就越高。
Changchun High-Tech Industry (Group)'s Earnings Growth And 19% ROE
長春高科技產業(集團)的三年中位數派息比率偏低,爲9.4%,意味着它將其利潤的較高百分比(91%)保留下來。因此,看起來管理層正在大量重新投資利潤以促進業務增長,這在其盈利增長數字中得到體現。
At first glance, Changchun High-Tech Industry (Group) seems to have a decent ROE. Especially when compared to the industry average of 7.6% the company's ROE looks pretty impressive. Probably as a result of this, Changchun High-Tech Industry (Group) was able to see an impressive net income growth of 21% over the last five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
We then compared Changchun High-Tech Industry (Group)'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 9.2% in the same 5-year period.
Additionally, Changchun High-Tech Industry (Group) has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 20% over the next three years. Despite the higher expected payout ratio, the company's ROE is not expected to change by much.
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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. 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 Changchun High-Tech Industry (Group) is trading on a high P/E or a low P/E, relative to its industry.
Is Changchun High-Tech Industry (Group) Efficiently Re-investing Its Profits?
長春高新技術產業(集團)是否高效地再投資利潤?
Changchun High-Tech Industry (Group)'s ' three-year median payout ratio is on the lower side at 9.4% implying that it is retaining a higher percentage (91%) of its profits. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number.
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.
Additionally, Changchun High-Tech Industry (Group) has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 20% over the next three years. Despite the higher expected payout ratio, the company's ROE is not expected to change by much.
此外,長春高新技術產業(集團)已連續十年支付股息,這意味着該公司非常重視與股東分享利潤。在研究最新分析師共識數據時,我們發現該公司未來的支付比率預計將在未來三年內升至20%。儘管預計支付比率更高,但該公司的roe不太可能發生太大變化。
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 Changchun High-Tech Industry (Group)'s performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. 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。