Are Jiangxi Special Electric Motor Co.,Ltd's (SZSE:002176) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Are Jiangxi Special Electric Motor Co.,Ltd's (SZSE:002176) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Jiangxi Special Electric MotorLtd (SZSE:002176) has had a rough month with its share price down 29%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Jiangxi Special Electric MotorLtd's ROE in this article.
江西特種電機有限公司（深圳證券交易所：002176）經歷了艱難的一個月，其股價下跌了29％。但是，從長遠來看，股票價格通常由公司的財務狀況驅動，在這種情況下，這看起來相當可觀。具體而言，我們決定在本文中研究江西特種電機有限公司的投資回報率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。簡而言之，它用於評估公司相對於其股權資本的盈利能力。
How Do You Calculate Return On Equity?
你如何計算股本回報率？
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Jiangxi Special Electric MotorLtd is:
因此，根據上述公式，江西特種電動機有限公司的投資回報率爲：
6.8% = CN¥282m ÷ CN¥4.2b (Based on the trailing twelve months to September 2023).
6.8% = 2.82億元人民幣 ¥42億元人民幣（基於截至2023年9月的過去十二個月）。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.07.
“回報” 是每年的利潤。因此，這意味着公司每投資1元人民幣，公司就會產生0.07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？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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，投資回報率衡量的是公司創造利潤的效率。根據公司選擇將多少利潤進行再投資或 “保留”，我們便能夠評估公司未來創造利潤的能力。一般而言，在其他條件相同的情況下，股本回報率和利潤留存率高的公司的增長率要高於不具有這些屬性的公司。
Jiangxi Special Electric MotorLtd's Earnings Growth And 6.8% ROE
江西特種電機有限公司的收益增長和6.8％的投資回報率
At first glance, Jiangxi Special Electric MotorLtd's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 7.2%, we may spare it some thought. Looking at Jiangxi Special Electric MotorLtd's exceptional 60% five-year net income growth in particular, we are definitely impressed. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
乍一看，江西特種電機有限公司的投資回報率看起來並不十分樂觀。但是，鑑於該公司的投資回報率與7.2％的平均行業投資回報率相似，我們可以不加思索。特別是江西特種電機有限公司驚人的 60% 的五年淨收入增長，我們肯定印象深刻。考慮到投資回報率適中，很可能還有其他一些方面對公司的收益增長產生積極影響。例如——高收益留存率或實行高效管理。
We then compared Jiangxi Special Electric MotorLtd'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 14% in the same 5-year period.
然後，我們將江西特種電機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5年同期增長率爲14％的行業相比，該公司的增長數字更高。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is Jiangxi Special Electric MotorLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
爲公司附加價值的基礎在很大程度上與其收益增長息息相關。對於投資者來說，重要的是要知道市場是否對公司的預期收益增長（或下降）進行了定價。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。與其他公司相比，江西特種電機有限公司的估值是否合理？這3種估值指標可能會幫助您做出決定。
Is Jiangxi Special Electric MotorLtd Efficiently Re-investing Its Profits?
江西特種電機有限公司是否有效地將利潤再投資？
Jiangxi Special Electric MotorLtd 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.
江西特種電機有限公司不向其股東支付任何股息，這意味着該公司已將其所有利潤再投資於該業務。這可能是推動上述高收益增長數字的原因。
Summary
摘要
In total, it does look like Jiangxi Special Electric MotorLtd 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. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. Our risks dashboard would have the 2 risks we have identified for Jiangxi Special Electric MotorLtd.
總的來說，江西特種電機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。雖然我們不會完全解散公司，但我們要做的是努力確定業務的風險，以便在公司周圍做出更明智的決定。我們的風險儀表板將包含我們爲江西特種電機有限公司確定的兩種風險。
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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根據歷史數據和分析師的預測提供評論，我們的文章無意作爲財務建議。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，我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之，華爾街沒有持有任何上述股票的頭寸。