Ningbo Construction Co., Ltd.'s (SHSE:601789) Stock Is Going Strong: Have Financials A Role To Play?
Ningbo Construction Co., Ltd.'s (SHSE:601789) Stock Is Going Strong: Have Financials A Role To Play?
Most readers would already be aware that Ningbo Construction's (SHSE:601789) stock increased significantly by 10% 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. Particularly, we will be paying attention to Ningbo Construction's ROE today.
大多数读者已经意识到,宁波建筑(SHSE: 601789)的股票在过去一个月中大幅增长了10%。我们想知道公司的财务状况在价格变动中是否起着什么作用,因为公司的长期基本面通常决定市场业绩。特别是,我们今天将关注宁波建设的投资回报率。
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 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用于评估公司管理层利用公司资本效率的关键指标。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?
Return on equity can be calculated by using the formula:
股本回报率可以使用以下公式计算:
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 Ningbo Construction is:
因此,根据上述公式,宁波建设的投资回报率为:
7.2% = CN¥370m ÷ CN¥5.2b (Based on the trailing twelve months to September 2023).
7.2% = 3.7亿元人民币 ÷ 52亿元人民币(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¥0.07 in profit.
“回报” 是指公司去年的收益。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 Has ROE Got To Do With Earnings Growth?
投资回报率与收益增长有什么关系?
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.
我们已经确定,投资回报率是衡量公司未来收益的有效盈利指标。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。一般而言,在其他条件相同的情况下,股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。
Ningbo Construction's Earnings Growth And 7.2% ROE
宁波建设的收益增长和7.2%的投资回报率
At first glance, Ningbo Construction's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 7.7%, we may spare it some thought. Even so, Ningbo Construction has shown a fairly decent growth in its net income which grew at a rate of 13%. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看,宁波建设的投资回报率看起来并不十分乐观。但是,鉴于该公司的投资回报率与7.7%的平均行业投资回报率相似,我们可以不加思索。即便如此,宁波建设的净收入仍表现出相当不错的增长,增长率为13%。考虑到投资回报率不是特别高,我们认为还可能有其他因素在起作用,这些因素可能会影响公司的增长。例如,该公司的派息率很低或管理得很高效。
We then compared Ningbo Construction'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 8.4% in the same 5-year period.
然后,我们将宁波建设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8.4%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/7781/20240326/0-9d0f9795e030e86cc8ee4366911ac9f6-0-e05490d5ff0c189ccb7e17de176c37ad.png/big)
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Is Ningbo Construction fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是对股票进行估值时要考虑的重要指标。无论如何,投资者应设法确定预期的收益增长或下降是否已计入其中。这样做将帮助他们确定股票的未来是乐观还是不祥的。与其他公司相比,宁波建设的估值是否合理?这3种估值指标可能会帮助您做出决定。
Is Ningbo Construction Making Efficient Use Of Its Profits?
宁波建设在有效利用利润吗?
Ningbo Construction has a healthy combination of a moderate three-year median payout ratio of 34% (or a retention ratio of 66%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.
正如我们在上面看到的,宁波建设的三年中位数派息率适中,为34%(或66%的留存率),以及可观的收益增长,这意味着该公司一直在有效利用其利润。
Besides, Ningbo Construction 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,宁波建设已经分红了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 Ningbo Construction certainly does have some positive factors to consider. 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. To know the 1 risk we have identified for Ningbo Construction visit our risks dashboard for free.
总的来说,我们认为宁波建设确实有一些积极的因素需要考虑。尽管投资回报率很低,但由于再投资率很高,该公司的收益实现了可观的增长。虽然我们不会完全解散公司,但我们要做的是努力确定业务的风险,以便在公司周围做出更明智的决定。要了解我们为宁波建设确定的一种风险,请免费访问我们的风险仪表板。
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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。