Hebei Huatong Wires and Cables Group Co., Ltd.'s (SHSE:605196) Stock's On An Uptrend: Are Strong Financials Guiding The Market?
Hebei Huatong Wires and Cables Group Co., Ltd.'s (SHSE:605196) Stock's On An Uptrend: Are Strong Financials Guiding The Market?
Hebei Huatong Wires and Cables Group (SHSE:605196) has had a great run on the share market with its stock up by a significant 24% over the last three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Hebei Huatong Wires and Cables Group's ROE.
河北華通電線電纜集團(SHSE: 605196)在股票市場上表現良好,其股票在過去三個月中大幅上漲了24%。由於市場通常會爲公司的長期基本面買單,因此我們決定研究公司的關鍵績效指標,看看它們是否會影響市場。在本文中,我們決定重點關注河北華通電線電纜集團的投資回報率。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回報率或投資回報率是股東需要考慮的重要因素,因爲它可以告訴他們資本再投資的有效性。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
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 Hebei Huatong Wires and Cables Group is:
因此,根據上述公式,河北華通電線電纜集團的投資回報率爲:
14% = CN¥376m ÷ CN¥2.8b (Based on the trailing twelve months to September 2023).
14% = 3.76億元人民幣 ÷ 28億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.14 in profit.
“回報” 是指公司去年的收益。另一種思考方式是,每持有價值人民幣1元的股權,該公司就能賺取0.14元人民幣的利潤。
What Has ROE Got To Do With Earnings Growth?
投資回報率與收益增長有什麼關係?
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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
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。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。
A Side By Side comparison of Hebei Huatong Wires and Cables Group's Earnings Growth And 14% ROE
河北華通電線電纜集團的收益增長和14%的投資回報率的並排比較
To start with, Hebei Huatong Wires and Cables Group's ROE looks acceptable. On comparing with the average industry ROE of 7.1% the company's ROE looks pretty remarkable. This certainly adds some context to Hebei Huatong Wires and Cables Group's exceptional 30% net income growth seen over the past five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
首先,河北華通電線電纜集團的投資回報率似乎可以接受。與7.1%的行業平均投資回報率相比,該公司的投資回報率看起來相當可觀。這無疑爲河北華通電線電纜集團在過去五年中實現的驚人30%的淨收入增長增添了一些背景信息。我們認爲,這裏可能還有其他因素在起作用。例如——高收益留存率或實行高效管理。
We then compared Hebei Huatong Wires and Cables Group'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,我們將河北華通電線電纜集團的淨收入增長與該行業進行了比較,我們很高興地看到,與同期同期增長14%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/7781/20240411/0-52dc479ad7029383a83ba273616677a8-0-a057e471b823dab273341bf59c4359d0.png/big)
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). 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 Hebei Huatong Wires and Cables Group is trading on a high P/E or a low P/E, relative to its industry.
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。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,您可能需要檢查河北華通電線電纜集團相對於其行業是高市盈率還是低市盈率。
Is Hebei Huatong Wires and Cables Group Efficiently Re-investing Its Profits?
河北華通電線電纜集團是否有效地將其利潤再投資?
Hebei Huatong Wires and Cables Group's ' three-year median payout ratio is on the lower side at 9.0% implying that it is retaining a higher percentage (91%) of its profits. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number.
河北華通電線電纜集團的三年中位數派息率處於較低水平,爲9.0%,這意味着其利潤比例更高(91%)。因此,管理層似乎正在將利潤大量再投資以發展業務,這反映在其收益增長數字上。
While Hebei Huatong Wires and Cables Group 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.
儘管河北華通電線電纜集團的收益有所增長,但直到最近才開始派息。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
Overall, we are quite pleased with Hebei Huatong Wires and Cables Group's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. 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,我們對河北華通電線電纜集團的表現非常滿意。特別是,很高興看到該公司正在對其業務進行大量投資,再加上高回報率,這爲其收益帶來了可觀的增長。既然如此,對分析師最新預測的研究表明,預計該公司未來的收益增長將放緩。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。