Electric Connector Technology Co., Ltd.'s (SZSE:300679) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Electric Connector Technology Co., Ltd.'s (SZSE:300679) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Electric Connector Technology's (SZSE:300679) stock is up by a considerable 14% over the past month. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Electric Connector Technology's ROE in this article.
電連接器科技(深圳證券交易所代碼:300679)的股票在過去一個月中上漲了14%。我們想知道公司的財務狀況在價格變動中是否起着什麼作用,因爲公司的長期基本面通常決定市場業績。具體而言,我們決定在本文中研究電氣連接器技術的投資回報率。
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 To Calculate Return On Equity?
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 Electric Connector Technology is:
因此,根據上述公式,電連接器技術的投資回報率爲:
6.4% = CN¥295m ÷ CN¥4.6b (Based on the trailing twelve months to September 2023).
6.4% = 2.95億元人民幣 ÷ 46億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.06.
“回報” 是過去十二個月的稅後收入。因此,這意味着公司每投資1元人民幣,公司就會產生0.06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?
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。
A Side By Side comparison of Electric Connector Technology's Earnings Growth And 6.4% ROE
電連接器科技的收益增長和6.4%的投資回報率的並排比較
At first glance, Electric Connector Technology's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 6.7%, we may spare it some thought. Even so, Electric Connector Technology has shown a fairly decent growth in its net income which grew at a rate of 15%. 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. 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.
乍一看,電連接器技術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6.7%的行業平均投資回報率相似,我們可以不加思索。即便如此,電連接器科技的淨收入仍表現出相當不錯的增長,增長率爲15%。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,公司的管理層可能做出了一些良好的戰略決策,或者公司的派息率很低。
We then compared Electric Connector 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 11% in the same 5-year period.
然後,我們將電連接器技術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11%的行業相比,該公司的增長數字更高。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240314/0-3415f3d31fb2dc3bf4921a6e2d93ccc8-0-0605906480ab38aede90cfa675348e7d.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for 300679? You can find out in our latest intrinsic value infographic research report.
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。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。然後,這可以幫助他們確定股票是面向光明還是暗淡的未來。市場在未來展望中是否定價爲300679美元?您可以在我們最新的內在價值信息圖研究報告中找到答案。
Is Electric Connector Technology Efficiently Re-investing Its Profits?
電連接器技術能否有效地將其利潤再投資?
Electric Connector Technology has a three-year median payout ratio of 30%, which implies that it retains the remaining 70% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
電連接器科技的三年派息率中位數爲30%,這意味着它保留了剩餘的70%的利潤。這表明其股息覆蓋範圍良好,鑑於該公司的可觀增長,管理層似乎正在有效地對其收益進行再投資。
Besides, Electric Connector Technology has been paying dividends over a period of six years. This shows that the company is committed to sharing profits with its shareholders.
此外,電氣連接器技術已經在六年內派發了股息。這表明該公司致力於與股東分享利潤。
Conclusion
結論
Overall, we feel that Electric Connector Technology certainly does have some positive factors to consider. 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. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總的來說,我們認爲電連接器技術確實有一些積極的因素需要考慮。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。話雖如此,最新的行業分析師預測顯示,該公司的收益有望加速。這些分析師的預期是基於對該行業的廣泛預期,還是基於公司的基本面?點擊此處進入我們分析師對公司的預測頁面。
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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。