There Are Reasons To Feel Uneasy About CGN Mining's (HKG:1164) Returns On Capital
There Are Reasons To Feel Uneasy About CGN Mining's (HKG:1164) Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. However, after briefly looking over the numbers, we don't think CGN Mining (HKG:1164) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
如果我們想要識別下一個多袋子,有幾個關鍵趨勢需要尋找。在一個完美的世界裡,我們希望看到一家公司向其業務投入更多資本,理想情況下,從這些資本中賺取的回報也在增加。基本上,這意味著一家公司有盈利的舉措,可以繼續進行再投資,這是復合機器的一個特點。然而,在簡單地看了一下數位之後,我們認為CGN挖掘(HKG:1164)具備了未來實現多個袋子的條件,但讓我們看看為什麼會這樣。
Understanding Return On Capital Employed (ROCE)
瞭解資本回報率(ROCE)
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on CGN Mining is:
對於那些不知道的人來說,ROCE是一家公司的年度稅前利潤(其回報)相對於業務資本的衡量標準。CGN挖掘的此計算公式為:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率=息稅前收益(EBIT)?(總資產-流動負債)
0.018 = HK$90m ÷ (HK$7.1b - HK$2.1b) (Based on the trailing twelve months to June 2023).
0.018=港幣9,000萬?(港幣71億-21億)(根據截至2023年6月的往績12個月計算)。
Therefore, CGN Mining has an ROCE of 1.8%. In absolute terms, that's a low return and it also under-performs the Oil and Gas industry average of 6.7%.
所以呢,中廣核礦業的淨資產收益率為1.8%。按絕對值計算,這是一個較低的回報率,也低於石油和天然氣行業6.7%的平均水準。
Check out our latest analysis for CGN Mining
查看我們對CGN挖掘的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231009/0-3e3a7c47a388bec8792f9d9e5c82294c-0-cc45cfff84a6c0ca46c3583c155c34ca.png/big)
Above you can see how the current ROCE for CGN Mining compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
上面你可以看到CGN Mining目前的淨資產收益率與之前的資本回報率相比如何,但你只能從過去知道這麼多。如果您感興趣,您可以在我們的免費分析師對該公司的預測報告.
The Trend Of ROCE
ROCE的發展趨勢
On the surface, the trend of ROCE at CGN Mining doesn't inspire confidence. Over the last five years, returns on capital have decreased to 1.8% from 7.9% five years ago. However it looks like CGN Mining might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It may take some time before the company starts to see any change in earnings from these investments.
從表面上看,中廣核礦業的ROCE趨勢並沒有激發信心。過去五年,資本回報率從五年前的7.9%降至1.8%。然而,看起來中廣核礦業可能正在為長期增長進行再投資,因為儘管已動用的資本有所增加,但該公司的銷售額在過去12個月裡沒有太大變化。該公司可能需要一段時間才能開始看到這些投資帶來的收益變化。
While on the subject, we noticed that the ratio of current liabilities to total assets has risen to 29%, which has impacted the ROCE. Without this increase, it's likely that ROCE would be even lower than 1.8%. Keep an eye on this ratio, because the business could encounter some new risks if this metric gets too high.
在這個問題上,我們注意到流動負債佔總資產的比例上升到29%,這對ROCE造成了影響。如果沒有這一增長,淨資產收益率很可能甚至會低於1.8%。密切關注這一比率,因為如果這一指標過高,業務可能會遇到一些新的風險。
The Key Takeaway
關鍵的外賣
Bringing it all together, while we're somewhat encouraged by CGN Mining's reinvestment in its own business, we're aware that returns are shrinking. Yet to long term shareholders the stock has gifted them an incredible 373% return in the last five years, so the market appears to be rosy about its future. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.
綜上所述,雖然中廣核礦業對自己業務的再投資多少讓我們感到鼓舞,但我們意識到回報正在縮水。然而,對於長期股東來說,該股在過去五年裡給他們帶來了令人難以置信的373%的回報率,因此市場似乎對其未來持樂觀態度。歸根結底,如果潛在的趨勢持續下去,我們不會屏息於它是一個多袋子未來。
One final note, you should learn about the 2 warning signs we've spotted with CGN Mining (including 1 which makes us a bit uncomfortable) .
最後一個注意事項,您應該瞭解2個個警告標誌我們已經發現了CGN Mining(包括1,這讓我們有點不舒服)。
While CGN Mining isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
雖然CGN礦業並沒有獲得最高的回報,但看看這個免費資產負債表穩健、股本回報率高的公司名單。
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本文由Simply Wall St.撰寫,具有概括性.我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議.它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況.我們的目標是為您帶來由基本面數據驅動的長期重點分析.請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內.Simply Wall St.對上述任何一隻股票都沒有持倉.