Hwaxin Environmental Co.,Ltd.'s (SZSE:301265) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?
Hwaxin Environmental Co.,Ltd.'s (SZSE:301265) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?
Hwaxin EnvironmentalLtd's (SZSE:301265) stock is up by a considerable 22% over the past three months. However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health. Particularly, we will be paying attention to Hwaxin EnvironmentalLtd's ROE today.
Hwaxin EnvironmentalLtd(SZSE:301265)的股票在過去三個月中大幅上漲了22%。然而,我們決定關注公司的基本面,這似乎並沒有明確顯示公司的財務健康狀況。特別是,我們將關注Hwaxin EnvironmentalLtd的roe今日。
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?
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 Hwaxin EnvironmentalLtd is:
因此,根據上述公式,Hwaxin EnvironmentalLtd的roe爲:
2.3% = CN¥47m ÷ CN¥2.1b (Based on the trailing twelve months to June 2024).
2.3% = 4.7億人民幣 ÷ 210億人民幣(截至2024年6月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.02 in profit.
「回報」是稅後收益,在過去的十二個月內獲得。另一種思考方式是,對於每一元人民幣的股權價值,公司能夠賺取0.02元的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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 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.
我們已經確定,roe可以作爲一種有效的衡量公司未來盈利能力的指標。現在我們需要評估公司再投資或「保留」的利潤有多少,這就給我們提供了有關公司增長潛力的想法。假設其他一切不變,roe和利潤保留率越高,公司的增長率就越高,而不一定具備這些特徵的公司相比。
Hwaxin EnvironmentalLtd's Earnings Growth And 2.3% ROE
Hwaxin EnvironmentalLtd的盈利增長和2.3%的roe
As you can see, Hwaxin EnvironmentalLtd's ROE looks pretty weak. Not just that, even compared to the industry average of 5.9%, the company's ROE is entirely unremarkable. For this reason, Hwaxin EnvironmentalLtd's five year net income decline of 11% is not surprising given its lower ROE. However, there could also be other factors causing the earnings to decline. Such as - low earnings retention or poor allocation of capital.
正如您所看到的,華新環保的roe看起來相當疲弱。不僅如此,甚至與行業平均水平5.9%相比,公司的roe完全不值一提。因此,考慮到其較低的roe,華新環保五年的淨利潤下降11%也就不足爲奇了。然而,導致盈利下降的原因也可能有其他因素。例如-低盈利留存或資本配置不佳。
However, when we compared Hwaxin EnvironmentalLtd's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 3.8% in the same period. This is quite worrisome.
然而,當我們將華新環保的增長與行業進行比較時,我們發現公司的盈利一直在縮水,而同一時期該行業的盈利增長率爲3.8%。這是非常令人擔憂的。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. 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 Hwaxin EnvironmentalLtd is trading on a high P/E or a low P/E, relative to its industry.
公司價值的依據很大程度上與其盈利增長掛鉤。投資者應盡力確定預期的盈利增長或下降,無論哪種情況都已反映在股價中。這樣做將有助於他們確定股票的未來前景是光明還是暗淡。一項預期盈利增長的良好指標是市盈率,它根據盈利前景確定市場願意爲一支股票支付的價格。因此,您可能想要檢查Hwaxin EnvironmentalLtd的市盈率是高還是低,與其行業相比。
Is Hwaxin EnvironmentalLtd Efficiently Re-investing Its Profits?
Hwaxin EnvironmentalLtd是否高效地再投資其利潤?
While the company did payout a portion of its dividend in the past, it currently doesn't pay a regular dividend. This implies that potentially all of its profits are being reinvested in the business.
雖然該公司過去曾分紅一部分,但目前不支付常規股息。這意味着其所有的利潤都被重新投資於業務中。
Conclusion
結論
In total, we're a bit ambivalent about Hwaxin EnvironmentalLtd's performance. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. To know the 2 risks we have identified for Hwaxin EnvironmentalLtd visit our risks dashboard for free.
總的來說,我們對Hwaxin EnvironmentalLtd的表現持保留態度。儘管它似乎大部分利潤都在保留,但鑑於較低的roe,投資者可能並未從所有再投資中獲益。較低的盈利增長表明了我們的理論是正確的。 總之,我們將謹慎對待這家公司的股票,一種方式是查看其業務的風險概況。要了解我們已經確定的Hwaxin EnvironmentalLtd的2個風險,請免費訪問我們的風險特斯拉-儀表。
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。