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Will Weakness in First Tractor Company Limited's (HKG:38) Stock Prove Temporary Given Strong Fundamentals?

Will Weakness in First Tractor Company Limited's (HKG:38) Stock Prove Temporary Given Strong Fundamentals?

一拖股份有限公司(HKG:38)的股票短期走弱是否會在強勁基本面支撐下暫時?
Simply Wall St ·  09/13 14:24

With its stock down 11% over the past three months, it is easy to disregard First Tractor (HKG:38). 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 First Tractor's ROE.

由於其股票在過去三個月中下跌了11%,很容易忽視第一拖拉機(HKG: 38)。但是,如果你密切關注,你可能會發現,鑑於市場通常會獎勵財務狀況良好的公司,其強勁的財務狀況可能意味着該股的長期價值可能會增加。在本文中,我們決定重點介紹第一拖拉機的投資回報率。

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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.

投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。簡而言之,投資回報率顯示了每美元從其股東投資中產生的利潤。

How Is ROE Calculated?

ROE 是如何計算的?

The formula for ROE is:

ROE 的公式是:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益

So, based on the above formula, the ROE for First Tractor is:

因此,根據上述公式,第一臺拖拉機的投資回報率爲:

15% = CN¥1.1b ÷ CN¥7.8b (Based on the trailing twelve months to June 2024).

15% = 11元人民幣 ÷ 78元人民幣(基於截至2024年6月的過去十二個月)。

The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each HK$1 of shareholders' capital it has, the company made HK$0.15 in profit.

「回報」 是企業在過去一年中獲得的收入。對此進行概念化的一種方法是,該公司每持有1港元的股本,就能獲得0.15港元的利潤。

What Has ROE Got To Do With Earnings Growth?

投資回報率與收益增長有什麼關係?

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. 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.

我們已經確定,投資回報率是衡量公司未來收益的有效盈利指標。根據公司選擇將多少利潤進行再投資或 「保留」,我們便能夠評估公司未來創造利潤的能力。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。

First Tractor's Earnings Growth And 15% ROE

第一臺拖拉機的收益增長和15%的投資回報率

To start with, First Tractor's ROE looks acceptable. And on comparing with the industry, we found that the the average industry ROE is similar at 12%. This certainly adds some context to First Tractor's exceptional 49% net income growth seen over the past five years. However, there could also be other drivers 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.

首先,第一拖拉機的投資回報率似乎可以接受。與行業相比,我們發現行業的平均投資回報率相似,爲12%。這無疑爲First Tractor在過去五年中驚人的49%淨收入增長增添了一些背景信息。但是,這種增長背後可能還有其他驅動力。例如,公司的管理層可能做出了一些良好的戰略決策,或者公司的派息率很低。

Next, on comparing with the industry net income growth, we found that First Tractor's growth is quite high when compared to the industry average growth of 8.9% in the same period, which is great to see.

接下來,與行業淨收入增長相比,我們發現,與同期8.9%的行業平均增長率相比,第一拖拉機的增長相當高,這真是太好了。

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SEHK:38 Past Earnings Growth September 13th 2024
SEHK: 38 過去的收益增長 2024 年 9 月 13 日

Earnings growth is an important metric to consider when valuing a stock. 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. 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 First Tractor is trading on a high P/E or a low P/E, relative to its industry.

收益增長是對股票進行估值時要考慮的重要指標。投資者接下來需要確定的是,預期的收益增長或缺乏收益是否已經包含在股價中。通過這樣做,他們將知道股票是走向清澈的藍色海水還是沼澤水域在等着呢。衡量預期收益增長的一個很好的指標是市盈率,它根據收益前景決定了市場願意爲股票支付的價格。因此,您可能需要檢查相對於其行業,First Tractor的市盈率是高還是低。

Is First Tractor Making Efficient Use Of Its Profits?

第一臺拖拉機能否有效利用其利潤?

The three-year median payout ratio for First Tractor is 30%, which is moderately low. The company is retaining the remaining 70%. By the looks of it, the dividend is well covered and First Tractor is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.

第一拖拉機的三年中位數派息率爲30%,略低。該公司保留了剩餘的70%。從表面上看,股息覆蓋範圍很大,First Tractor正在有效地對其利潤進行再投資,我們上面討論的其非凡增長就證明了這一點。

Additionally, First Tractor 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.

此外,First Tractor已在至少十年內派發了股息,這意味着該公司非常認真地與股東分享利潤。

Summary

摘要

Overall, we are quite pleased with First Tractor'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. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. 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,我們對第一拖拉機的表現非常滿意。特別是,我們喜歡該公司對其業務進行大量再投資,而且回報率很高。毫不奇怪,這帶來了令人印象深刻的收益增長。話雖如此,正如分析師目前的估計所預測的那樣,該公司的收益增長預計將放緩。要了解有關公司未來收益增長預測的更多信息,請查看這份關於分析師預測的免費報告,以了解更多信息。

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.

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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。

声明:本內容僅用作提供資訊及教育之目的,不構成對任何特定投資或投資策略的推薦或認可。 更多信息
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