Chongqing Xishan Science & Technology Co., Ltd. (SHSE:688576) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
Chongqing Xishan Science & Technology Co., Ltd. (SHSE:688576) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
Chongqing Xishan Science & Technology (SHSE:688576) has had a rough month with its share price down 19%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. In this article, we decided to focus on Chongqing Xishan Science & Technology's ROE.
重庆西山科技(上海证券交易所代码:688576)经历了艰难的一个月,其股价下跌了19%。但是,从长远来看,股票价格通常由公司的财务状况驱动,在这种情况下,这看起来相当可观。在这篇文章中,我们决定重点关注重庆西山科技的投资回报率。
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.
股本回报率或投资回报率是股东需要考虑的重要因素,因为它可以告诉他们资本再投资的有效性。简而言之,投资回报率显示了每美元从其股东投资中产生的利润。
How Is ROE Calculated?
ROE 是如何计算的?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Chongqing Xishan Science & Technology is:
因此,根据上述公式,重庆西山科技的投资回报率为:
4.6% = CN¥97m ÷ CN¥2.1b (Based on the trailing twelve months to September 2023).
4.6% = 9700万元人民币 ÷ 21亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.05 in profit.
“回报” 是指公司去年的收益。这意味着,每持有价值1元人民币的股权,公司就会产生0.05元人民币的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要?
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. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
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。假设其他一切保持不变,那么与不一定具有这些特征的公司相比,投资回报率和利润保留率越高,公司的增长率就越高。
A Side By Side comparison of Chongqing Xishan Science & Technology's Earnings Growth And 4.6% ROE
重庆西山科技的收益增长和4.6%的投资回报率的并排比较
It is quite clear that Chongqing Xishan Science & Technology's ROE is rather low. Not just that, even compared to the industry average of 9.3%, the company's ROE is entirely unremarkable. Despite this, surprisingly, Chongqing Xishan Science & Technology saw an exceptional 55% net income growth over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
很明显,重庆西山科技的投资回报率相当低。不仅如此,即使与9.3%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。尽管如此,令人惊讶的是,重庆西山科技在过去五年中实现了惊人的55%的净收入增长。我们认为这里可能还有其他因素在起作用。例如,公司的管理层可能做出了一些良好的战略决策,或者公司的派息率很低。
We then compared Chongqing Xishan Science & Technology'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 16% in the same 5-year period.
然后,我们将重庆西山科技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5年同期增长率为16%的行业相比,该公司的增长数字更高。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240202/0-df1bdc8c1378ebbb461c36edb24da9b0-0-5bb9c424c2b2dbffc6aa3d66cd6a2a9c.png/big)
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is 688576 fairly valued? This infographic on the company's intrinsic value has everything you need to know.
收益增长是股票估值的重要因素。对于投资者来说,重要的是要知道市场是否对公司的预期收益增长(或下降)进行了定价。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。688576 的估值是否合理?这张关于公司内在价值的信息图包含了你需要知道的一切。
Is Chongqing Xishan Science & Technology Efficiently Re-investing Its Profits?
重庆西山科技是否有效地将其利润再投资?
Chongqing Xishan Science & Technology doesn't pay any dividend to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.
重庆西山科技没有向其股东支付任何股息,这意味着该公司一直在将其所有利润再投资于该业务。这可能是推动上述高收益增长数字的原因。
Summary
摘要
On the whole, we do feel that Chongqing Xishan Science & Technology has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总的来说,我们确实认为重庆西山科技有一些积极的属性。尽管回报率很低,但由于对业务进行了大量再投资,该公司的收益增长令人印象深刻。既然如此,对分析师最新预测的研究表明,预计该公司未来的收益增长将放缓。要详细了解分析师对公司的最新预测,请查看该公司的分析师预测的可视化。
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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。