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Declining Stock and Solid Fundamentals: Is The Market Wrong About CIG ShangHai Co., Ltd. (SHSE:603083)?

Declining Stock and Solid Fundamentals: Is The Market Wrong About CIG ShangHai Co., Ltd. (SHSE:603083)?

股票下跌和基本面稳健:市场对CIG上海有限公司(SHSE: 603083)的看法错误吗?
Simply Wall St ·  01/19 11:31

CIG ShangHai (SHSE:603083) has had a rough month with its share price down 13%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on CIG ShangHai's ROE.

CIG上海(上海证券交易所代码:603083)经历了艰难的一个月,其股价下跌了13%。但是,仔细观察其良好的财务状况可能会让你重新考虑。鉴于基本面通常会推动长期市场业绩,该公司值得关注。在本文中,我们决定重点关注CIG上海的投资回报率。

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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.

投资回报率或股本回报率是评估公司如何有效地从股东那里获得投资回报的有用工具。简而言之,它衡量公司相对于股东权益的盈利能力。

View our latest analysis for CIG ShangHai

查看我们对CIG上海的最新分析

How Is ROE Calculated?

ROE 是如何计算的?

ROE can be calculated by using the formula:

ROE 可以通过以下公式计算:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

股本回报率 = 净利润(来自持续经营业务)÷ 股东权益

So, based on the above formula, the ROE for CIG ShangHai is:

因此,根据上述公式,CIG上海的投资回报率为:

10% = CN¥218m ÷ CN¥2.2b (Based on the trailing twelve months to September 2023).

10% = 2.18亿元人民币 ÷ 22亿元人民币(基于截至2023年9月的过去十二个月)。

The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.10 in profit.

“回报” 是每年的利润。另一种思考方式是,公司每持有价值1元人民币的股权,就能获得0.10元的利润。

What Is The Relationship Between ROE And Earnings Growth?

投资回报率与收益增长之间有什么关系?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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,投资回报率衡量的是公司创造利润的效率。然后,我们能够评估公司的收益增长潜力,具体取决于公司对这些利润进行再投资或 “保留” 了多少及其有效性。一般而言,在其他条件相同的情况下,股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。

CIG ShangHai's Earnings Growth And 10% ROE

CIG上海的收益增长和10%的投资回报率

When you first look at it, CIG ShangHai's ROE doesn't look that attractive. However, the fact that the its ROE is quite higher to the industry average of 6.7% doesn't go unnoticed by us. Particularly, the substantial 30% net income growth seen by CIG ShangHai over the past five years is impressive . That being said, the company does have a slightly low ROE to begin with, just that it is higher than the industry average. Hence, there might be some other aspects that are causing earnings to grow. For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.

当你第一次看的时候,CIG上海的投资回报率看起来并不那么吸引人。但是,其投资回报率远高于行业平均水平的6.7%,这一事实并没有被我们忽视。特别是,CIG上海在过去五年中实现了30%的净收入大幅增长,这令人印象深刻。话虽如此,该公司的投资回报率一开始确实略低,只是高于行业平均水平。因此,可能还有其他一些方面导致收益增长。例如,整个行业可能正在经历高增长阶段,或者该公司的派息率很低。

We then compared CIG ShangHai'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 13% in the same 5-year period.

然后,我们将CIG Shanghai的净收入增长与该行业进行了比较,我们很高兴地看到,与同期同期增长13%的行业相比,该公司的增长数字更高。

past-earnings-growth
SHSE:603083 Past Earnings Growth January 19th 2024
SHSE: 603083 过去的收益增长 2024 年 1 月 19 日

Earnings growth is an important metric to consider when valuing a stock. 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 CIG ShangHai's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

收益增长是对股票进行估值时要考虑的重要指标。投资者接下来需要确定的是,预期的收益增长或缺乏收益是否已经包含在股价中。然后,这可以帮助他们确定股票是为光明还是暗淡的未来而布局。如果你想知道CIG上海的估值,可以看看这个衡量其与行业相比的市盈率指标。

Is CIG ShangHai Making Efficient Use Of Its Profits?

CIG上海是否在有效利用其利润?

CIG ShangHai doesn't pay any dividend currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above.

CIG上海目前不支付任何股息,这实质上意味着它一直在将所有利润再投资于该业务。这无疑促成了我们上面讨论的高收益增长数字。

Summary

摘要

On the whole, we feel that CIG ShangHai's performance has been quite good. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. To know the 2 risks we have identified for CIG ShangHai visit our risks dashboard for free.

总的来说,我们觉得CIG上海的表现相当不错。特别是,很高兴看到该公司的收益在可观的投资回报率和高再投资率的支持下实现了显著增长。考虑到每股收益如何影响长期股价,如果该公司继续以现有方式增长收益,这可能会对其股价产生积极影响。请记住,股票的价格还取决于感知的风险。因此,在投资任何公司之前,投资者必须随时了解所涉及的风险。要了解我们为CIG Shanghai确定的两种风险,请免费访问我们的风险控制面板。

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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.

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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。

声明:本内容仅用作提供资讯及教育之目的,不构成对任何特定投资或投资策略的推荐或认可。 更多信息
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