Do Its Financials Have Any Role To Play In Driving Wuxi Taiji Industry Limited Corporation's (SHSE:600667) Stock Up Recently?
Do Its Financials Have Any Role To Play In Driving Wuxi Taiji Industry Limited Corporation's (SHSE:600667) Stock Up Recently?
Wuxi Taiji Industry Limited (SHSE:600667) has had a great run on the share market with its stock up by a significant 47% over the last three months. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Particularly, we will be paying attention to Wuxi Taiji Industry Limited's ROE today.
無錫太極實業有限公司(SHSE: 600667)在股票市場上表現良好,其股票在過去三個月中大幅上漲了47%。鑑於股票價格通常與公司的長期財務表現一致,我們決定更仔細地研究其財務指標,看看它們在近期的價格走勢中是否有機會發揮作用。特別是,我們今天將關注無錫太極實業有限公司的投資回報率。
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵衡量標準。簡而言之,它衡量公司相對於股東權益的盈利能力。
How Is ROE Calculated?
投資回報率是如何計算的?
ROE can be calculated by using the formula:
ROE 可以通過使用以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營)÷ 股東權益
So, based on the above formula, the ROE for Wuxi Taiji Industry Limited is:
因此,根據上述公式,無錫太極實業有限公司的投資回報率爲:
8.6% = CN¥783m ÷ CN¥9.1b (Based on the trailing twelve months to September 2024).
8.6% = 78300萬元人民幣 ÷ 91元人民幣(基於截至2024年9月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.09 in profit.
「回報」 是指公司去年的收益。另一種思考方式是,每持有價值1元人民幣的股權,該公司就能獲得0.09元人民幣的利潤。
What Is The Relationship Between ROE And Earnings Growth?
投資回報率與收益增長之間有什麼關係?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 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.
到目前爲止,我們已經了解到,ROE衡量的是公司創造利潤的效率。我們現在需要評估公司再投資或 「保留」 了多少利潤以用於未來的增長,這樣我們就可以了解公司的增長潛力。假設其他條件相同,與不具有相同特徵的公司相比,既有更高股本回報率又更高利潤保留率的公司通常是增長率更高的公司。
Wuxi Taiji Industry Limited's Earnings Growth And 8.6% ROE
無錫太極實業有限公司的收益增長和8.6%的投資回報率
When you first look at it, Wuxi Taiji Industry Limited's ROE doesn't look that attractive. Although a closer study shows that the company's ROE is higher than the industry average of 6.4% which we definitely can't overlook. However, Wuxi Taiji Industry Limited's five year net income decline rate was 16%. Remember, the company's ROE is a bit low to begin with, just that it is higher than the industry average. So that could be one of the factors that are causing earnings growth to shrink.
當你第一次看時,無錫太極實業有限公司的投資回報率看起來並不那麼吸引人。儘管一項更仔細的研究表明,該公司的投資回報率高於行業平均水平的6.4%,但我們絕對不能忽視。但是,無錫太極實業有限公司的五年淨收入下降率爲16%。請記住,該公司的投資回報率一開始有點低,只是高於行業平均水平。因此,這可能是導致收益增長萎縮的因素之一。
So, as a next step, we compared Wuxi Taiji Industry Limited'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 14% over the last few years.
因此,下一步,我們將無錫太極實業有限公司的表現與行業進行了比較,失望地發現,儘管該公司一直在縮減收益,但該行業在過去幾年中一直以14%的速度增長收益。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. Is Wuxi Taiji Industry Limited fairly valued compared to other companies? These 3 valuation measures might help you decide.
爲公司附加價值的基礎在很大程度上與其收益增長息息相關。對於投資者來說,重要的是要知道市場是否對公司的預期收益增長(或下降)進行了定價。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。與其他公司相比,無錫太極實業有限公司的估值是否合理?這3種估值指標可能會幫助您做出決定。
Is Wuxi Taiji Industry Limited Using Its Retained Earnings Effectively?
無錫太極實業有限公司是否在有效使用其留存收益?
In spite of a normal three-year median payout ratio of 33% (that is, a retention ratio of 67%), the fact that Wuxi Taiji Industry Limited's earnings have shrunk is quite puzzling. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
儘管正常的三年派息率中位數爲33%(即留存率爲67%),但無錫太極實業有限公司的收益萎縮這一事實令人費解。因此,這裏可能還有其他因素在起作用,這些因素可能會阻礙增長。例如,該業務面臨一些阻力。
Additionally, Wuxi Taiji Industry Limited has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth.
此外,無錫太極實業有限公司已經派發了至少十年的股息,這意味着即使收益增長微乎其微,公司的管理層也決心派發股息。
Conclusion
結論
Overall, we feel that Wuxi Taiji Industry Limited certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a respectable rate of return and is reinvesting a huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總體而言,我們認爲無錫太極實業有限公司確實有一些積極因素需要考慮。但是,低收益增長有點令人擔憂,特別是考慮到該公司的回報率可觀,並且正在將很大一部分利潤再投資。從表面上看,可能還有其他一些因素阻礙了增長,這些因素不一定是業務的控制。既然如此,最新的行業分析師預測顯示,分析師預計公司的收益增長率將得到巨大改善。要詳細了解分析師對公司的最新預測,請查看該公司的分析師預測的可視化。
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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提供基於歷史數據和分析師預測的評論,我們的文章並非旨在提供財務建議。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,我們的分析可能不會考慮最新的價格敏感型公司公告或定性材料。華爾街只是沒有持有上述任何股票的頭寸。