Are Robust Financials Driving The Recent Rally In Jiangsu Tongli Risheng Machinery Co., Ltd.'s (SHSE:605286) Stock?
Are Robust Financials Driving The Recent Rally In Jiangsu Tongli Risheng Machinery Co., Ltd.'s (SHSE:605286) Stock?
Most readers would already be aware that Jiangsu Tongli Risheng Machinery's (SHSE:605286) stock increased significantly by 12% over the past week. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to Jiangsu Tongli Risheng Machinery's ROE today.
大多數讀者可能已經知道,江蘇通立日升機械(SHSE:605286)的股價在過去一週內大漲了12%。由於市場通常會爲一家公司的長期基本面支付,我們決定研究該公司的關鍵業績指標,看看它們是否對市場產生影響。特別是,我們今天將關注江蘇通立日升機械的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. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE或股東權益報酬率是一種有用的工具,用於評估一家公司能否有效地利用來自股東的投資產生回報。換句話說,它揭示了公司將股東的投資變成利潤的成功程度。
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 Jiangsu Tongli Risheng Machinery is:
因此,根據以上公式,江蘇通立日升機械的roe爲:
17% = CN¥369m ÷ CN¥2.2b (Based on the trailing twelve months to June 2024).
17% = CN¥36900萬 ÷ CN¥22億(基於截至2024年6月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.17 in profit.
「回報」指的是公司過去一年的收益。這意味着對於每1元股東權益,該公司能夠創造0.17元利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
So far, we've learned that ROE is a measure of a company's profitability. 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.
到目前爲止,我們已經了解了roe是衡量公司盈利能力的一種指標。根據公司選擇重新投資或「保留」多少利潤,我們就能評估公司未來盈利的能力。一般來說,其他條件相同的情況下,具有高roe和盈利保留的公司比不具備這些屬性的公司增長率更高。
A Side By Side comparison of Jiangsu Tongli Risheng Machinery's Earnings Growth And 17% ROE
江蘇通力日盛機械的收益增長和17%roe一覽
At first glance, Jiangsu Tongli Risheng Machinery seems to have a decent ROE. Especially when compared to the industry average of 6.9% the company's ROE looks pretty impressive. Probably as a result of this, Jiangsu Tongli Risheng Machinery was able to see a decent growth of 15% over the last five years.
乍一看,江蘇通力日盛機械的roe似乎還過得去。特別是與行業平均6.9%相比,該公司的roe看起來相當令人印象深刻。也許正是因爲如此,江蘇通力日盛機械在過去五年中能夠實現15%的不錯增長。
As a next step, we compared Jiangsu Tongli Risheng Machinery'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 9.1%.
作爲下一步,我們將江蘇通力日盛機械的淨利潤增長與行業進行了比較,並且令人愉悅地發現,該公司的增長高於行業平均增長率9.1%。
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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). Doing so will help them establish if the stock's future looks promising or ominous. 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 Jiangsu Tongli Risheng Machinery is trading on a high P/E or a low P/E, relative to its industry.
盈利增長是股票估值的一個重要因素。投資者需要知道市場是否已經定價了公司預期的盈利增長(或下降)。這樣做可以幫助他們判斷股票的未來是有希望的還是不祥的。一個好的預期盈利增長指標是市盈率,它根據股票的盈利前景確定市場願意爲其支付的價格。因此,您可能想要檢查江蘇通力日升機械的市盈率是高還是低,相對於其所在的行業。
Is Jiangsu Tongli Risheng Machinery Using Its Retained Earnings Effectively?
江蘇通力日升機械是否有效利用保留收益?
Jiangsu Tongli Risheng Machinery's three-year median payout ratio to shareholders is 14% (implying that it retains 86% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business.
江蘇通力日升機械三年的股息派發比率的中位數爲14%(意味着保留了86%的利潤),這屬於較低水平,所以看起來管理層正在大量投資利潤來擴大業務。
Additionally, Jiangsu Tongli Risheng Machinery has paid dividends over a period of three years which means that the company is pretty serious about sharing its profits with shareholders.
此外,江蘇通力日升機械在過去三年內支付了股息,這意味着公司對與股東分享利潤非常認真。
Conclusion
結論
In total, we are pretty happy with Jiangsu Tongli Risheng Machinery's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. To know the 1 risk we have identified for Jiangsu Tongli Risheng Machinery visit our risks dashboard for free.
總的來說,我們對江蘇通力榮盛機械的表現還是比較滿意的。特別是,我們喜歡該公司高額的再投資率和高回報率。毫不奇怪,這導致了令人印象深刻的盈利增長。如果該公司繼續保持這種盈利增長的話,這可能對其股價產生積極影響,因爲每股收益對長期股價有影響。請記住,股票價格也取決於投資者對風險的看法。因此,在投資任何公司之前,投資者必須了解相關風險。要了解我們已經爲江蘇通力榮盛機械確定的第一個風險,請免費查看我們的風險儀表盤。
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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。