Sinosteel Luonai Materials Technology Co., Ltd.'s (SHSE:688119) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Sinosteel Luonai Materials Technology Co., Ltd.'s (SHSE:688119) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Sinosteel Luonai Materials Technology's (SHSE:688119) stock is up by a considerable 7.8% over the past week. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. Particularly, we will be paying attention to Sinosteel Luonai Materials Technology's ROE today.
中钢洛耐材料科技(上海证券交易所代码:688119)的股票在过去一周上涨了7.8%。但是,在本文中,我们决定重点关注其疲软的基本面,因为企业的长期财务表现最终决定了市场业绩。特别是,我们今天将关注中钢洛耐材料科技的投资回报率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键衡量标准。简而言之,它用于评估公司相对于其股权资本的盈利能力。
View our latest analysis for Sinosteel Luonai Materials Technology
查看我们对中钢洛耐材料科技的最新分析
How Is ROE Calculated?
投资回报率是如何计算的?
The formula for return on equity is:
股本回报率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营)÷ 股东权益
So, based on the above formula, the ROE for Sinosteel Luonai Materials Technology is:
因此,根据上述公式,中钢洛耐材料科技的投资回报率为:
4.4% = CN¥139m ÷ CN¥3.1b (Based on the trailing twelve months to September 2023).
4.4% = 1.39亿元人民币 ¥310亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the profit 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¥0.04.
“回报” 是过去十二个月的利润。因此,这意味着该公司每投资1元人民币,就会产生0.04元人民币的利润。
What Has ROE Got To Do With Earnings Growth?
投资回报率与收益增长有什么关系?
So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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.
到目前为止,我们已经了解到,投资回报率是衡量公司盈利能力的指标。根据公司选择再投资或 “保留” 的利润金额,我们随后能够评估公司未来的盈利能力。一般而言,在其他条件相同的情况下,股本回报率和利润保留率高的公司比不具备这些属性的公司的增长率更高。
A Side By Side comparison of Sinosteel Luonai Materials Technology's Earnings Growth And 4.4% ROE
中钢洛耐材料科技的收益增长和4.4%的投资回报率的并排比较
It is quite clear that Sinosteel Luonai Materials Technology's ROE is rather low. Not just that, even compared to the industry average of 6.8%, the company's ROE is entirely unremarkable. Therefore, the disappointing ROE therefore provides a background to Sinosteel Luonai Materials Technology's very little net income growth of 2.2% over the past five years.
很明显,中钢洛耐材料科技的投资回报率相当低。不仅如此,即使与6.8%的行业平均水平相比,该公司的投资回报率也完全不引人注目。因此,令人失望的投资回报率为中钢洛耐材料科技在过去五年中仅有2.2%的净收入增长提供了背景。
We then compared Sinosteel Luonai Materials Technology's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 3.3% in the same 5-year period, which is a bit concerning.
然后,我们将中钢洛耐材料科技的净收入增长与该行业进行了比较,发现该公司的增长数字低于同期3.3%的行业平均增长率,这有点令人担忧。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231109/0-0c10fe8fd248c5de19e4346fbb23f424-0-86d96971fcedcfacfc91a89666597812.png/big)
Earnings growth is a huge factor in stock valuation. 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 Sinosteel Luonai Materials Technology's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增长是股票估值的重要因素。无论如何,投资者应设法确定预期的收益增长或下降是否已计入其中。然后,这可以帮助他们确定股票是面向光明还是暗淡的未来。如果你想知道中钢洛耐材料科技的估值,可以看看这个衡量其与行业相比的市盈率指标。
Is Sinosteel Luonai Materials Technology Using Its Retained Earnings Effectively?
中钢洛耐材料科技是否有效使用其留存收益?
The high three-year median payout ratio of 65% (that is, the company retains only 35% of its income) over the past three years for Sinosteel Luonai Materials Technology suggests that the company's earnings growth was lower as a result of paying out a majority of its earnings.
在过去三年中,中钢洛耐材料科技的三年期中位支付率高达65%(即该公司仅保留收入的35%),这表明由于支付了大部分收益,该公司的收益增长有所放缓。
Summary
摘要
In total, we would have a hard think before deciding on any investment action concerning Sinosteel Luonai Materials Technology. Because the company is not reinvesting much into the business, and given the low ROE, it's not surprising to see the lack or absence of growth in its earnings. In brief, we think the company is risky and investors should think twice before making any final judgement on this company. Our risks dashboard would have the 3 risks we have identified for Sinosteel Luonai Materials Technology.
总的来说,在决定任何与中钢洛耐材料科技有关的投资行动之前,我们会经过深思熟虑。由于该公司对业务的再投资不多,而且鉴于投资回报率低,其收益缺乏或没有增长也就不足为奇了。简而言之,我们认为该公司存在风险,投资者在对该公司做出最终判断之前应三思而后行。我们的风险仪表板将包含我们为中钢洛耐材料科技确定的三种风险。
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