Jiangsu Xiehe Electronic Co.,Ltd. (SHSE:605258) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Jiangsu Xiehe Electronic Co.,Ltd. (SHSE:605258) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Most readers would already be aware that Jiangsu Xiehe ElectronicLtd's (SHSE:605258) stock increased significantly by 34% 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. In this article, we decided to focus on Jiangsu Xiehe ElectronicLtd's ROE.
大多數讀者可能已經知道,江蘇協合電子有限公司(SHSE:605258)的股票在過去三個月內上漲了34%。但是公司的主要財務指標似乎各不相同,這讓我們質疑公司當前的股價動能是否能夠持續。在本文中,我們決定專注於江蘇協合電子有限公司的ROE。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股東權益回報率或ROE是股東需考慮的重要因素,因爲它表明他們的資本再投資的有效性。簡而言之,ROE顯示每一美元在股東投資方面產生的利潤。
How Is ROE Calculated?
淨資產收益率怎麼計算?
Return on equity can be calculated by using the formula:
淨資產收益率可以通過以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股東權益回報率 = 凈利潤(來自持續運營)÷ 股東權益
So, based on the above formula, the ROE for Jiangsu Xiehe ElectronicLtd is:
因此,根據上述公式,江蘇協和電子有限公司的ROE爲:
4.9% = CN¥58m ÷ CN¥1.2b (Based on the trailing twelve months to September 2024).
4.9% = CN¥5800萬 ÷ CN¥12億(基於截至2024年9月的過去十二個月)。
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.05 in profit.
『回報』是過去十二個月的利潤。一種概念化的方法是,對於每CN¥1的股東資本,公司賺取了CN¥0.05的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對凈利潤增長很重要?
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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前爲止,我們已經了解到ROE衡量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"多少利潤以促進未來的增長,這將使我們對公司的增長潛力有一個基本的了解。一般來說,其他條件相同,具有高股本回報率和利潤保留的公司,其增長率通常高於沒有這些特徵的公司。
Jiangsu Xiehe ElectronicLtd's Earnings Growth And 4.9% ROE
江蘇協和電子有限公司的盈利增長及4.9% ROE
When you first look at it, Jiangsu Xiehe ElectronicLtd's ROE doesn't look that attractive. Next, when compared to the average industry ROE of 6.3%, the company's ROE leaves us feeling even less enthusiastic. For this reason, Jiangsu Xiehe ElectronicLtd's five year net income decline of 21% is not surprising given its lower ROE. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. Such as - low earnings retention or poor allocation of capital.
初看江蘇協和電子有限公司的ROE似乎並不吸引人。接下來,與行業平均ROE 6.3%相比,該公司的ROE使我們更加失望。因此,江蘇協和電子有限公司在過去五年中凈利潤下降21%並不令人意外,因爲其ROE較低。我們認爲可能還有其他因素在消極影響公司的盈利前景,例如-低盈利留存或資本配置不當。
So, as a next step, we compared Jiangsu Xiehe 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 3.9% over the last few years.
因此,作爲下一步,我們將江蘇協和電子有限公司的表現與行業進行了比較,讓人失望的是,雖然該公司的盈利在縮減,但行業在過去幾年中盈利以3.9%的速度增長。
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. 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 Jiangsu Xiehe ElectronicLtd is trading on a high P/E or a low P/E, relative to its industry.
盈利增長是評估股票時一個重要的指標。投資者應該嘗試確定預期的盈利增長或下降,無論是哪種情況,是否已經被市場價格所反映。這有助於他們判斷股票的未來是光明還是黯淡。預期盈利增長的一個良好指標是市盈率,它決定了市場願意爲股票支付的價格,基於其盈利前景。因此,您可能想檢查江蘇協和電子有限公司相對於其行業的市盈率是高還是低。
Is Jiangsu Xiehe ElectronicLtd Efficiently Re-investing Its Profits?
江蘇協和電子有限公司是否有效地再投資其利潤?
Despite having a normal three-year median payout ratio of 47% (where it is retaining 53% of its profits), Jiangsu Xiehe ElectronicLtd has seen a decline in earnings as we saw above. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
儘管其正常的三年中位數派息比例爲47%(其保留了53%的利潤),但是如上所述,江蘇協和電子有限公司的盈利卻出現了下降。因此,可能還有其他因素在起作用,這可能會阻礙其增長。例如,該業務面臨了一些逆風。
In addition, Jiangsu Xiehe ElectronicLtd has been paying dividends over a period of four years suggesting that keeping up dividend payments is preferred by the management even though earnings have been in decline.
此外,江蘇協和電子有限公司已經連續四年支付分紅,這表明管理層更傾向於保持分紅支付,即使盈利在下降。
Summary
總結
On the whole, we feel that the performance shown by Jiangsu Xiehe ElectronicLtd can be open to many interpretations. 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. You can see the 2 risks we have identified for Jiangsu Xiehe ElectronicLtd by visiting our risks dashboard for free on our platform here.
總體來說,我們認爲江蘇協和電子有限公司的業績可以有多種解讀。雖然看起來它保留了大部分利潤,但考慮到低ROE,投資者可能並沒有從所有的再投資中獲益。低盈利增長表明我們的理論是正確的。總結一下,我們對這家公司會謹慎行事,而其中一種方式就是查看業務的風險概況。您可以免費訪問我們平台上的風險儀表板,查看我們爲江蘇協和電子有限公司識別的兩個風險。
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.
對本文有反饋?對內容有疑慮?請直接與我們聯繫。或者,發送電子郵件至 editorial-team (at) simplywallst.com。
這篇來自Simply Wall ST的文章是一般性的。我們根據歷史數據和分析師預測提供評論,採用無偏見的方法,我們的文章並不旨在提供財務建議。它不構成對任何股票的買入或賣出建議,也未考慮到您的目標或財務狀況。我們旨在爲您提供以基本數據驅動的長期分析。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在提到的任何股票中均沒有持倉。