Should Weakness in Newonder Special Electric Co.,Ltd.'s (SZSE:301120) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Newonder Special Electric Co.,Ltd.'s (SZSE:301120) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
It is hard to get excited after looking at Newonder Special ElectricLtd's (SZSE:301120) recent performance, when its stock has declined 27% over the past three months. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Particularly, we will be paying attention to Newonder Special ElectricLtd's ROE today.
看了Newonder Special ElectricLtd(深圳證券交易所代碼:301120)最近的表現,很難感到興奮,當時其股票在過去三個月中下跌了27%。但是,如果你密切關注,你可能會發現其關鍵財務指標看起來相當不錯,考慮到市場通常會獎勵更具彈性的長期基本面,這可能意味着該股有可能在長期內上漲。特別是,我們今天將關注Newonder Special ElectricLtd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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
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中獲得回報的有用工具。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?
The formula for return on equity is:
股本回報率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Newonder Special ElectricLtd is:
因此,根據上述公式,Newonder 特種電氣有限公司的投資回報率爲:
5.3% = CN¥85m ÷ CN¥1.6b (Based on the trailing twelve months to September 2023).
5.3% = 8500萬元人民幣 ÷ 16億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the profit over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.05 in profit.
“回報” 是過去十二個月的利潤。另一種思考方式是,公司每擁有價值1元人民幣的股權,就能獲得0.05元的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定,投資回報率是衡量公司未來收益的有效盈利指標。然後,我們能夠評估公司的收益增長潛力,具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。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。
Newonder Special ElectricLtd's Earnings Growth And 5.3% ROE
Newonder 特種電氣有限公司的收益增長和5.3%的投資回報率
When you first look at it, Newonder Special ElectricLtd's ROE doesn't look that attractive. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 7.1% either. However, the moderate 12% net income growth seen by Newonder Special ElectricLtd over the past five years is definitely a positive. We reckon that there could be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.
當你第一次看時,Newonder Special ElectricLtd的投資回報率看起來並不那麼吸引人。一項快速的進一步研究表明,該公司的投資回報率與行業平均水平的7.1%相比也並不理想。但是,Newonder Special ElectricLtd在過去五年中實現了12%的溫和淨收入增長,這絕對是積極的。我們認爲這裏可能還有其他因素在起作用。例如,該公司的派息率較低或管理效率很高。
Next, on comparing Newonder Special ElectricLtd's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 14% over the last few years.
接下來,在將Newonder Special ElectricLtd的淨收入增長與該行業的淨收入增長進行比較時,我們發現該公司報告的增長與過去幾年14%的行業平均增長率相似。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240228/0-a3594a1bb92886d0af63fa880307704f-0-e0ea42dc3e089bc20adf1052cb981048.png/big)
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Newonder Special ElectricLtd is trading on a high P/E or a low P/E, relative to its industry.
收益增長是股票估值的重要因素。無論如何,投資者應設法確定預期的收益增長或下降是否已計入其中。通過這樣做,他們將知道股票是走向清澈的藍色海水還是沼澤水域在等着呢。衡量預期收益增長的一個很好的指標是市盈率,它根據收益前景決定了市場願意爲股票支付的價格。因此,你可能需要檢查一下與其行業相比,Newonder Special ElectricLtd的交易市盈率是高還是低。
Is Newonder Special ElectricLtd Efficiently Re-investing Its Profits?
Newonder 特種電氣有限公司是否有效地將其利潤再投資?
Newonder Special ElectricLtd has a healthy combination of a moderate three-year median payout ratio of 31% (or a retention ratio of 69%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.
Newonder Special ElectricLtd的三年中位派息率適中,爲31%(或69%的留存率),再加上我們在上面看到的可觀的收益增長,這意味着該公司一直在有效利用其利潤。
While Newonder Special ElectricLtd has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend.
儘管Newonder Special ElectricLtd的收益有所增長,但它直到最近才開始派發股息。該公司很可能決定通過分紅給新老股東留下深刻的印象。
Summary
摘要
In total, it does look like Newonder Special ElectricLtd has some positive aspects to its business. 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.
總的來說,看來Newonder Special ElectricLtd的業務確實有一些積極的方面。儘管回報率很低,但由於對業務進行了大量再投資,該公司的收益增長令人印象深刻。
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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。