Should Weakness in ShanDongDenghai Seeds Co.,Ltd's (SZSE:002041) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in ShanDongDenghai Seeds Co.,Ltd's (SZSE:002041) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
ShanDongDenghai SeedsLtd (SZSE:002041) has had a rough month with its share price down 14%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to ShanDongDenghai SeedsLtd's ROE today.
山東登海種業有限公司（深圳證券交易所：002041）經歷了艱難的一個月，其股價下跌了14％。但是，該公司的基本面看起來相當不錯，長期財務狀況通常與未來的市場價格走勢一致。特別是，我們今天將關注山東登海種業有限公司的投資回報率。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
ROE或股本回報率是評估公司如何有效地從股東那裏獲得的投資回報的有用工具。換句話說，它是一種盈利比率，用於衡量公司股東提供的資本的回報率。
Check out our latest analysis for ShanDongDenghai SeedsLtd
查看我們對山東登海種業有限公司的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for ROE is:
投資回報率的公式是：
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 ShanDongDenghai SeedsLtd is:
因此，根據上述公式，山東登海種業有限公司的投資回報率爲：
7.7% = CN¥283m ÷ CN¥3.7b (Based on the trailing twelve months to September 2023).
7.7% = 2.83億元人民幣 ÷ 37億元人民幣（基於截至2023年9月的過去十二個月）。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.08 in profit.
“回報” 是每年的利潤。這意味着，每持有價值1元人民幣的股權，公司就會產生0.08元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要？
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.
到目前爲止，我們已經了解到，投資回報率是衡量公司盈利能力的指標。根據公司選擇再投資或 “保留” 的利潤金額，我們隨後能夠評估公司未來的盈利能力。一般而言，在其他條件相同的情況下，股本回報率和利潤保留率高的公司比不具備這些屬性的公司的增長率更高。
ShanDongDenghai SeedsLtd's Earnings Growth And 7.7% ROE
山東登海種業有限公司的收益增長和7.7％的投資回報率
At first glance, ShanDongDenghai SeedsLtd's ROE doesn't look very promising. However, its ROE is similar to the industry average of 8.5%, so we won't completely dismiss the company. Particularly, the exceptional 38% net income growth seen by ShanDongDenghai SeedsLtd over the past five years is pretty remarkable. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看，山東登海種業有限公司的投資回報率看起來並不十分樂觀。但是，其投資回報率與行業平均水平的8.5％相似，因此我們不會完全解散該公司。特別是，山東登海種業有限公司在過去五年中實現了38％的驚人淨收入增長，這非常引人注目。鑑於投資回報率略低，可能還有其他一些方面推動這種增長。例如，該公司的派息率較低或管理效率很高。
We then compared ShanDongDenghai SeedsLtd's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 7.3% in the same 5-year period.
然後，我們將山東登海種業有限公司的淨收入增長與該行業進行了比較，我們很高興地看到，與同期同期7.3％的行業相比，該公司的增長數字更高。
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about ShanDongDenghai SeedsLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增長是股票估值的重要因素。投資者接下來需要確定的是，預期的收益增長或缺乏收益是否已經包含在股價中。然後，這可以幫助他們確定股票是面向光明還是暗淡的未來。如果你想知道山東登海種業有限公司的估值，可以看看這個衡量其市盈率與行業相比的指標。
Is ShanDongDenghai SeedsLtd Efficiently Re-investing Its Profits?
山東登海種業有限公司是否有效地將利潤再投資？
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. This is likely what's driving the high earnings growth number discussed above.
儘管該公司過去確實支付了部分股息，但目前不支付股息。這可能是推動上述高收益增長數字的原因。
Conclusion
結論
In total, it does look like ShanDongDenghai SeedsLtd has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總的來說，山東登海種業有限公司的業務看起來確實有一些積極的方面。儘管投資回報率很低，但由於再投資率很高，該公司的收益實現了可觀的增長。在研究分析師當前的估計時，我們發現分析師預計該公司將繼續保持最近的增長勢頭。這些分析師的預期是基於對該行業的廣泛預期，還是基於公司的基本面？點擊此處進入我們分析師對公司的預測頁面。
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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。