Can Mixed Fundamentals Have A Negative Impact on Zhejiang Zhaofeng Mechanical and Electronic Co.,Ltd. (SZSE:300695) Current Share Price Momentum?
Can Mixed Fundamentals Have A Negative Impact on Zhejiang Zhaofeng Mechanical and Electronic Co.,Ltd. (SZSE:300695) Current Share Price Momentum?
Zhejiang Zhaofeng Mechanical and ElectronicLtd's (SZSE:300695) stock is up by a considerable 43% over the past three months. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Specifically, we decided to study Zhejiang Zhaofeng Mechanical and ElectronicLtd's ROE in this article.
浙江兆豐機械電子有限公司(深交所代碼:300695)的股票在過去三個月中上漲了相當可觀的43%。但該公司的關鍵財務指標似乎存在差異,這讓我們懷疑該公司當前的股價動能是否能夠維持。具體來說,我們決定在本文中研究浙江兆豐機械電子有限公司的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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
淨資產收益率(roe)是衡量公司經營管理層如何有效利用公司資本的關鍵指標。換言之,它是一種利潤率,衡量由公司股東提供的資本的回報率。
How Do You Calculate Return On Equity?
如何計算淨資產收益率?
The formula for ROE is:
roe的公式是:
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 Zhejiang Zhaofeng Mechanical and ElectronicLtd is:
因此,根據上述公式,浙江兆豐機械電子有限公司的roe爲:
5.4% = CN¥138m ÷ CN¥2.6b (Based on the trailing twelve months to September 2024).
5.4% = CN¥13800萬 ÷ CN¥26億(基於截至2024年9月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.05.
「回報」是指過去12個月稅後所賺取的金額。因此,這意味着對於公司每股東投資1元錢,公司能夠創造出0.05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. 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。
Zhejiang Zhaofeng Mechanical and ElectronicLtd's Earnings Growth And 5.4% ROE
浙江兆豐機械電子有限公司的盈利增長和5.4%的roe
On the face of it, Zhejiang Zhaofeng Mechanical and ElectronicLtd's ROE is not much to talk about. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 8.3%. Given the circumstances, the significant decline in net income by 4.8% seen by Zhejiang Zhaofeng Mechanical and ElectronicLtd over the last five years is not surprising. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
從表面上看,浙江兆豐機械電子有限公司的roe並不值得一提。我們將公司的roe與更廣泛的行業進行了比較,失望地看到roe低於行業平均水平的8.3%。考慮到這種情況,浙江兆豐機械電子有限公司在過去五年中淨利潤下降4.8%並不令人驚訝。我們相信,可能還有其他方面對公司的盈利前景產生負面影響。例如,該公司的分紅派息比率非常高,或者面臨競爭壓力。
So, as a next step, we compared Zhejiang Zhaofeng Mechanical and ElectronicLtd's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 9.2% over the last few years.
因此,作爲下一步,我們將浙江兆豐機械電子有限公司的表現與行業進行了比較,失望地發現雖然該公司的盈利在縮減,但行業在過去幾年以9.2%的速度增長盈利。

Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Zhejiang Zhaofeng Mechanical and ElectronicLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是評估股票時一個重要的指標。投資者應該嘗試判斷預計的盈利增長或下降,無論是哪種情況,是否已經計入價格。這有助於他們判斷股票的未來是光明還是黯淡。如果你想了解浙江趙峯機械電子有限公司的估值,可以查看其市盈率與行業板塊的對比。
Is Zhejiang Zhaofeng Mechanical and ElectronicLtd Efficiently Re-investing Its Profits?
浙江趙峯機械電子有限公司是否有效地再投資其利潤?
Zhejiang Zhaofeng Mechanical and ElectronicLtd's low three-year median payout ratio of 9.4% (implying that it retains the remaining 91% of its profits) comes as a surprise when you pair it with the shrinking earnings. The low payout should mean that the company is retaining most of its earnings and consequently, should see some growth. So there could be some other explanations in that regard. For example, the company's business may be deteriorating.
浙江趙峯機械電子有限公司三年最低中位數派息率爲9.4%(這意味着它保留了其餘91%的利潤),與盈利縮減相結合,顯得有些意外。低派息應該意味着公司保留了大部分盈利,因此應該會看到一些增長。對此可能還有其他解釋。例如,公司的業務可能正在惡化。
Moreover, Zhejiang Zhaofeng Mechanical and ElectronicLtd has been paying dividends for seven years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer consistent dividends even though earnings have been shrinking.
此外,浙江趙峯機械電子有限公司已經連續七年支付分紅,這段時間相當長,表明管理層必須意識到股東更喜歡持續的分紅,即使盈利在下降。
Summary
總結
In total, we're a bit ambivalent about Zhejiang Zhaofeng Mechanical and ElectronicLtd's performance. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. 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. Our risks dashboard would have the 2 risks we have identified for Zhejiang Zhaofeng Mechanical and ElectronicLtd.
總體來看,我們對浙江兆豐機械電子有限公司的表現有些猶豫。雖然該公司的利潤留存率很高,但低迴報率可能阻礙了其收益增長。總結來說,我們對這家公司應保持謹慎,其中一種方法是查看該業務的風險概況。我們的風險儀表盤上列出了我們爲浙江兆豐機械電子有限公司識別的兩個風險。
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