Should Weakness in Tianjin Chase Sun Pharmaceutical Co.,Ltd's (SZSE:300026) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Tianjin Chase Sun Pharmaceutical Co.,Ltd's (SZSE:300026) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Tianjin Chase Sun PharmaceuticalLtd (SZSE:300026) has had a rough three months with its share price down 14%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Tianjin Chase Sun PharmaceuticalLtd's ROE today.
天津大通药业有限公司（深圳证券交易所代码：300026）经历了艰难的三个月，其股价下跌了14％。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。特别是，我们今天将关注天津大通制药有限公司的投资回报率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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指标。换句话说，它是衡量公司股东提供的资本回报率的盈利比率。
How To Calculate Return On Equity?
如何计算股本回报率？
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 Tianjin Chase Sun PharmaceuticalLtd is:
因此，根据上述公式，天津大通太阳制药有限公司的投资回报率为：
7.5% = CN¥663m ÷ CN¥8.9b (Based on the trailing twelve months to September 2023).
7.5% = 6.63亿元人民币 ÷ 89亿元人民币（基于截至2023年9月的过去十二个月）。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.07 in profit.
“回报” 是每年的利润。这意味着，公司每获得价值1元人民币的股东权益，就会产生0.07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？
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. 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，投资回报率是衡量公司盈利能力的指标。根据公司选择将多少利润进行再投资或 “保留”，我们便能够评估公司未来创造利润的能力。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。
Tianjin Chase Sun PharmaceuticalLtd's Earnings Growth And 7.5% ROE
天津大通制药有限公司的收益增长和7.5％的投资回报率
At first glance, Tianjin Chase Sun PharmaceuticalLtd'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. On the other hand, Tianjin Chase Sun PharmaceuticalLtd reported a moderate 17% net income growth over the past five years. 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，天津大通药业有限公司的投资回报率看起来并不十分乐观。但是，其投资回报率与行业平均水平的8.5％相似，因此我们不会完全解散该公司。另一方面，天津大通药业有限公司报告称，过去五年净收入温和增长了17％。考虑到投资回报率适中，很可能还有其他一些方面对公司的收益增长产生积极影响。例如——高收益留存率或实行高效管理。
As a next step, we compared Tianjin Chase Sun PharmaceuticalLtd's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%.
下一步，我们将天津大通制药有限公司的净收入增长与该行业进行了比较，令人高兴的是，我们发现该公司的增长高于11％的行业平均增长。
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. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Tianjin Chase Sun PharmaceuticalLtd'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。这样做将帮助他们确定股票的未来是乐观还是不祥的。如果你想知道天津大通制药有限公司的估值，可以看看这个衡量其市盈率与行业相比的指标。
Is Tianjin Chase Sun PharmaceuticalLtd Efficiently Re-investing Its Profits?
天津大通制药有限公司是否有效地将利润再投资？
In Tianjin Chase Sun PharmaceuticalLtd's case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 17% (or a retention ratio of 83%), which suggests that the company is investing most of its profits to grow its business.
以天津大通制药有限公司为例，其可观的收益增长可以用其三年低的派息率中位数17％（或83％的留存率）来解释，这表明该公司正在将大部分利润投资于业务增长。
Besides, Tianjin Chase Sun PharmaceuticalLtd has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.
此外，天津大通药业有限公司已经派发股息至少十年或更长时间。这表明该公司致力于与股东分享利润。
Summary
摘要
Overall, we feel that Tianjin Chase Sun PharmaceuticalLtd certainly does have some positive factors to consider. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总的来说，我们认为天津大通药业有限公司确实有一些积极的因素需要考虑。尽管回报率很低，但该公司将其利润的很大一部分再投资于其业务这一事实无疑促进了其高收益增长。最新的行业分析师预测显示，预计该公司将保持目前的增长率。要了解有关公司未来收益增长预测的更多信息，请查看这份关于分析师预测的免费报告，以了解更多信息。
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