Should You Be Worried About Health and Happiness (H&H) International Holdings Limited's (HKG:1112) 4.3% Return On Equity?
Should You Be Worried About Health and Happiness (H&H) International Holdings Limited's (HKG:1112) 4.3% Return On Equity?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Health and Happiness (H&H) International Holdings Limited (HKG:1112), by way of a worked example.
雖然一些投資者已經精通財務指標（謝帽），但本文是爲那些想要學習股東回報率（roe）及其重要性的人準備的。我們將使用roe來分析康健國際控股有限公司（HKG:1112）作爲一個案例。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE，即淨資產收益率，測試一家公司有效增加價值和管理股東資金的能力。換句話說，它揭示了公司將股東投資轉化爲利潤的成功程度。
How To Calculate Return On Equity?
如何計算股東權益報酬率？
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（來自持續經營） ÷ 股東權益
So, based on the above formula, the ROE for Health and Happiness (H&H) International Holdings is:
那麼，根據上述公式，康健國際控股的roe爲：
4.3% = CN¥280m ÷ CN¥6.5b (Based on the trailing twelve months to June 2024).
4.3% = 人民幣28000萬 ÷ 人民幣65億（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. So, this means that for every HK$1 of its shareholder's investments, the company generates a profit of HK$0.04.
『回報』指的是公司過去一年的盈利。因此，這意味着對於每港元股東投資，公司可以賺取港元0.04的利潤。
Does Health and Happiness (H&H) International Holdings Have A Good ROE?
健康與幸福國際控股的 roe 表現如何？
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Health and Happiness (H&H) International Holdings has a lower ROE than the average (6.5%) in the Food industry.
判斷一家公司的 roe 表現是否良好的一個簡單方法是將其與同行業平均水平進行比較。重要的是，這遠非完美的衡量標準，因爲同一行業內公司之間存在顯著差異。從下面的圖片中可以清楚地看出，健康與幸福國際控股的 roe 比食品行業平均水平（6.5%）低。
That certainly isn't ideal. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. Our risks dashboard should have the 4 risks we have identified for Health and Happiness (H&H) International Holdings.
那肯定不理想。雖然，我們認爲較低的 roe 仍可能意味着公司有機會通過使用槓桿改善其回報，前提是其現有債務水平較低。當一家公司的 roe 低而債務水平高時，我們應該謹慎，因爲涉及的風險太高。我們的風險特斯拉-儀表應該列出了我們已經爲健康與幸福國際控股確定的4個風險。
How Does Debt Impact ROE?
債務對ROE的影響是怎樣的？
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
公司通常需要投資資金來增加利潤。這些資金可以來自發行股票、留存收益或債務。在前兩種情況下，roe將反映出這些現金用於業務投資。在後一種情況下，用於增長的債務將提高回報，但不會影響股東權益。債務的使用將提高roe，儘管業務的核心經濟狀況保持不變。
Health and Happiness (H&H) International Holdings' Debt And Its 4.3% ROE
健康與幸福（H&H）國際控股公司的債務及其4.3%的roe
Health and Happiness (H&H) International Holdings does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.47. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
健康與幸福（H&H）國際控股公司確實使用大量債務來提高回報率。它的資產負債比爲1.47。儘管利用了大量債務，但其roe相當低；這不是一個好結果，據我們看來。債務會增加風險並減少公司未來的選擇，因此通常希望通過使用它獲得一些好的回報。
Conclusion
結論
Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
當然，聯合租賃公司可能並不是最佳的買入股票。因此，您可能也希望查看這個包含其他高ROE低負債的公司的免費系列。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.
話雖如此，雖然ROE是業務質量的有用指標，但您需要研究各種因素來確定購買股票的正確價格。利潤增長速度與反映在股票價格中的預期是特別重要的考慮因素。因此，我認爲值得查看該公司分析師預測的免費報告。
But note: Health and Happiness (H&H) International Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但請注意：健康與幸福（H&H）國際控股公司可能不是最佳買入股票。因此，快來查看這份免費名單，其中包含roe高、債務低的有趣公司。
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Simply Wall St的這篇文章是一般性質的。我們僅基於歷史數據和分析師預測提供評論，使用公正的方法，我們的文章並非意在提供財務建議。這並不構成買入或賣出任何股票的建議，並且不考慮您的目標或財務狀況。我們旨在爲您帶來基於基礎數據驅動的長期聚焦分析。請注意，我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall St對提及的任何股票都沒有持倉。
