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Wuxi Chemical Equipment Co., Ltd.'s (SZSE:001332) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?

Wuxi Chemical Equipment Co., Ltd.'s (SZSE:001332) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?

無錫化工設備股份有限公司(SZSE:001332)的股票走勢良好,但基本面看起來不強:這可能對股票有什麼影響?
Simply Wall St ·  08/29 20:35

Most readers would already be aware that Wuxi Chemical Equipment's (SZSE:001332) stock increased significantly by 16% over the past week. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. Particularly, we will be paying attention to Wuxi Chemical Equipment's ROE today.

大多數讀者可能已經知道,無錫化工裝備(SZSE:001332)的股票在過去一週大幅上漲了16%。然而,在本文中,我們決定關注其薄弱的基本面,因爲長期的財務表現最終決定了市場的結果。特別是,我們將重點關注無錫化工裝備的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 Is ROE Calculated?

淨資產收益率怎麼計算?

Return on equity can be calculated by using the formula:

股東權益報酬率可以使用以下公式計算:

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 Chemical Equipment is:

所以,根據上述公式,無錫化工裝備的roe爲:

6.7% = CN¥150m ÷ CN¥2.3b (Based on the trailing twelve months to March 2024).

6.7% = 1.5億人民幣 ÷ 23億元人民幣(基於截至2024年3月的過去十二個月)。

The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.07 in profit.

「回報」是年利潤。換種方式考慮,對於每1元人民幣的股權,公司能夠賺取0.07元人民幣的利潤。

What Has ROE Got To Do With Earnings Growth?

roe與盈利增長有何關係?

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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.

我們已經確定,roe作爲一種有效的盈利預測工具,可爲公司未來的盈利能力提供參考。基於公司選擇重新投資或「保留」的利潤比例,我們可以評估其未來盈利能力。總的來說,在其他條件相等的情況下,roe和利潤保留比例高的公司比那些不具備這些特點的公司增長速度更快。

A Side By Side comparison of Wuxi Chemical Equipment's Earnings Growth And 6.7% ROE

無錫化工設備的營收增長與6.7%的ROE的比較

On the face of it, Wuxi Chemical Equipment's ROE is not much to talk about. However, its ROE is similar to the industry average of 7.0%, so we won't completely dismiss the company. But then again, Wuxi Chemical Equipment's five year net income shrunk at a rate of 2.1%. Remember, the company's ROE is a bit low to begin with. Hence, this goes some way in explaining the shrinking earnings.

乍一看,無錫化工設備的ROE並不值得一提。然而,它的ROE與行業平均水平7.0%相似,因此我們不會完全忽視這家公司。但無錫化工設備的五年淨利潤以2.1%的速率下降。請記住,該公司的ROE起始水平就有點低。因此,這在一定程度上解釋了收益的下降。

However, when we compared Wuxi Chemical Equipment's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 9.2% in the same period. This is quite worrisome.

然而,當我們將無錫化工設備的增長與行業進行比較時,我們發現,儘管該公司的收益持續下降,但同期行業的收益增長了9.2%,這是相當令人擔憂的。

1724975346665
SZSE:001332 Past Earnings Growth August 30th 2024
SZSE:001332過去盈利增長情況2024年8月30日

Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Wuxi Chemical Equipment fairly valued compared to other companies? These 3 valuation measures might help you decide.

收益增長是股票估值的重要因素。投資者需要判斷預期的收益增長是否已經反映在股價中,從而判斷股票是朝着明朗的天空前進,還是將要面臨沼澤般的困境。與其他公司相比,無錫化工設備是否被合理定價?以下3個估值指標可能會幫助您做出決策。

Is Wuxi Chemical Equipment Efficiently Re-investing Its Profits?

無錫化工設備是否高效地再投資其利潤?

Wuxi Chemical Equipment's declining earnings is not surprising given how the company is spending most of its profits in paying dividends, judging by its three-year median payout ratio of 62% (or a retention ratio of 38%). With only a little being reinvested into the business, earnings growth would obviously be low or non-existent. You can see the 2 risks we have identified for Wuxi Chemical Equipment by visiting our risks dashboard for free on our platform here.

無錫化工設備的收益下降並不令人意外,因爲公司大部分利潤用於支付股息,根據其三年的中位數派息率爲62%(或保留比率爲38%)來判斷。由於只有很少的資金再投資到業務中,因此收益增長顯然會很低或不存在。您可以免費訪問我們的平台上的風險儀表板,了解我們爲無錫化工設備確定的兩個風險。

In addition, Wuxi Chemical Equipment only recently started paying a dividend so the management probably decided the shareholders prefer dividends even though earnings have been shrinking.

此外,無錫化工設備最近才開始支付股息,所以管理層可能決定股東更喜歡股息,儘管盈利一直在下降。

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。

Overall, we would be extremely cautious before making any decision on Wuxi Chemical Equipment. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. So far, we've only made a quick discussion around the company's earnings growth. To gain further insights into Wuxi Chemical Equipment's past profit growth, check out this visualization of past earnings, revenue and cash flows.

總的來說,在對無錫化工裝備做出任何決定之前,我們應該極度謹慎。由於其ROE較低,且未對業務進行大量再投資,該公司的盈利增長率令人失望。到目前爲止,我們只對公司的盈利增長進行了快速討論。要進一步了解無錫化工裝備過去的盈利增長情況,請查看之前的盈利、營業收入和現金流的可視化數據。

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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。

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