Declining Stock and Decent Financials: Is The Market Wrong About ShanDongDenghai Seeds Co.,Ltd (SZSE:002041)?
Declining Stock and Decent Financials: Is The Market Wrong About ShanDongDenghai Seeds Co.,Ltd (SZSE:002041)?
With its stock down 23% over the past three months, it is easy to disregard ShanDongDenghai SeedsLtd (SZSE:002041). 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 ShanDongDenghai SeedsLtd's ROE today.
山东登海种业有限公司(深圳证券交易所:002041)的股票在过去三个月中下跌了23%,这很容易被忽视。但是,如果你密切关注,你可能会发现其关键财务指标看起来相当不错,考虑到市场通常会奖励更具弹性的长期基本面,这可能意味着该股有可能在长期内上涨。特别是,我们今天将关注山东登海种业有限公司的投资回报率。
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. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
投资回报率或股本回报率是评估公司如何有效地从股东那里获得投资回报的有用工具。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 To Calculate Return On Equity?
如何计算股本回报率?
The formula for ROE is:
ROE 的公式是:
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 ShanDongDenghai SeedsLtd is:
因此,根据上述公式,山东登海种业有限公司的投资回报率为:
7.7% = CN¥283m ÷ CN¥3.7b (Based on the trailing twelve months to September 2023).
7.7% = 2.83亿元人民币 ÷ 37亿元人民币(基于截至2023年9月的过去十二个月)。
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¥0.08.
“回报” 是过去十二个月的税后收入。因此,这意味着公司每投资1元人民币,公司就会产生0.08元人民币的利润。
What Has ROE Got To Do With Earnings Growth?
投资回报率与收益增长有什么关系?
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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。现在,我们需要评估公司再投资或 “保留” 了多少利润以用于未来的增长,从而使我们对公司的增长潜力有所了解。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。
ShanDongDenghai SeedsLtd's Earnings Growth And 7.7% ROE
山东登海种业有限公司的收益增长和7.7%的投资回报率
On the face of it, ShanDongDenghai SeedsLtd's ROE is not much to talk about. However, its ROE is similar to the industry average of 9.0%, so we won't completely dismiss the company. Particularly, the exceptional 38% net income growth seen by ShanDongDenghai SeedsLtd over the past five years is pretty remarkable. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this 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.
从表面上看,山东登海种业有限公司的投资回报率没什么好说的。但是,其投资回报率与行业平均水平的9.0%相似,因此我们不会完全解散该公司。特别是,山东登海种业有限公司在过去五年中实现了38%的惊人净收入增长,这非常引人注目。鉴于投资回报率略低,可能还有其他一些方面推动这种增长。例如,公司的管理层可能做出了一些良好的战略决策,或者公司的派息率很低。
Next, on comparing with the industry net income growth, we found that ShanDongDenghai SeedsLtd's growth is quite high when compared to the industry average growth of 7.4% in the same period, which is great to see.
接下来,与行业净收入增长相比,我们发现山东登海种业有限公司的增长与同期7.4%的行业平均增长率相比相当高,这真是太好了。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240416/0-601719a34770ff9e5a879f0f726cd478-0-9219e19dbeb78caeab00a7f57fa35d43.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. Is ShanDongDenghai SeedsLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
为公司附加价值的基础在很大程度上与其收益增长息息相关。对于投资者来说,重要的是要知道市场是否对公司的预期收益增长(或下降)进行了定价。通过这样做,他们将知道股票是走向清澈的蓝色海水还是沼泽水域在等着呢。与其他公司相比,山东登海种业有限公司的估值是否合理?这3种估值指标可能会帮助您做出决定。
Is ShanDongDenghai SeedsLtd Using Its Retained Earnings Effectively?
山东登海种业有限公司是否在有效使用其留存收益?
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a regular dividend. This is likely what's driving the high earnings growth number discussed above.
尽管该公司过去确实支付了部分股息,但目前不支付定期股息。这可能是推动上述高收益增长数字的原因。
Conclusion
结论
On the whole, we do feel that ShanDongDenghai SeedsLtd has some positive attributes. 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. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总的来说,我们确实认为山东登海种业有限公司具有一些积极的属性。尽管回报率很低,但由于对业务进行了大量再投资,该公司的收益增长令人印象深刻。话虽如此,正如分析师目前的估计所预测的那样,该公司的收益增长预计将放缓。要详细了解分析师对公司的最新预测,请查看该公司的分析师预测的可视化。
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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。