Long Young Electronic (Kunshan) Co., Ltd.'s (SZSE:301389) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Long Young Electronic (Kunshan) Co., Ltd.'s (SZSE:301389) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Long Young Electronic (Kunshan)'s (SZSE:301389) stock is up by a considerable 29% over the past three months. We, however wanted to have a closer look at its key financial indicators as the markets usually pay for long-term fundamentals, and in this case, they don't look very promising. Specifically, we decided to study Long Young Electronic (Kunshan)'s ROE in this article.
隆扬电子（昆山）（深圳证券交易所代码：301389）的股票在过去三个月中大幅上涨了29％。但是，我们想仔细研究其关键财务指标，因为市场通常会为长期基本面买单，在这种情况下，它们看起来并不十分乐观。具体而言，我们决定在本文中研究隆扬电子（昆山）的投资回报率。
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 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股东需要考虑的重要因素，因为它可以告诉他们资本再投资的有效性。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 Long Young Electronic (Kunshan) is:
因此，根据上述公式，隆扬电子（昆山）的投资回报率为：
4.4% = CN¥95m ÷ CN¥2.2b (Based on the trailing twelve months to March 2024).
4.4% = 9500万元人民币 ÷ 22亿元人民币（基于截至2024年3月的过去十二个月）。
The 'return' is the profit 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¥0.04.
“回报” 是过去十二个月的利润。因此，这意味着公司每投资1元人民币，公司就会产生0.04元人民币的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系？
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。
Long Young Electronic (Kunshan)'s Earnings Growth And 4.4% ROE
隆扬电子（昆山）的收益增长和4.4％的投资回报率
It is hard to argue that Long Young Electronic (Kunshan)'s ROE is much good in and of itself. Even when compared to the industry average of 6.3%, the ROE figure is pretty disappointing. For this reason, Long Young Electronic (Kunshan)'s five year net income decline of 6.1% is not surprising given its lower ROE. We reckon that there could also be other factors at play here. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
很难说隆扬电子（昆山）的投资回报率本身就非常好。即使与6.3％的行业平均水平相比，投资回报率的数字也相当令人失望。出于这个原因，鉴于投资回报率较低，隆扬电子（昆山）五年净收入下降6.1％并不奇怪。我们认为，这里可能还有其他因素在起作用。例如，该公司的派息率非常高，或者面临竞争压力。
So, as a next step, we compared Long Young Electronic (Kunshan)'s performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 6.4% over the last few years.
因此，下一步，我们将隆扬电子（昆山）的表现与行业进行了比较，失望地发现，尽管该公司一直在缩减收益，但该行业在过去几年中一直以6.4％的速度增长收益。
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. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Long Young Electronic (Kunshan)'s's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
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。然后，这可以帮助他们确定股票是面向光明还是暗淡的未来。如果你想知道隆扬电子（昆山）的估值，可以看看这个衡量其与行业相比的市盈率指标。
Is Long Young Electronic (Kunshan) Using Its Retained Earnings Effectively?
隆扬电子（昆山）是否有效地使用了其留存收益？
Long Young Electronic (Kunshan)'s very high three-year median payout ratio of 105% over the last three years suggests that the company is paying its shareholders more than what it is earning and this explains the company's shrinking earnings. Paying a dividend beyond their means is usually not viable over the long term. You can see the 2 risks we have identified for Long Young Electronic (Kunshan) by visiting our risks dashboard for free on our platform here.
隆扬电子（昆山）在过去三年中非常高的三年派息率中位数为105％，这表明该公司向股东支付的薪水超过了收入，这解释了该公司收益萎缩的原因。从长远来看，超出其承受能力的股息通常是不可行的。您可以访问我们的 2 种风险来查看我们为隆扬电子（昆山）确定的两种风险 风险仪表板 在我们的平台上免费使用。
Additionally, Long Young Electronic (Kunshan) started paying a dividend only recently. So it looks like the management may have perceived that shareholders favor dividends even though earnings have been in decline.
此外，隆扬电子（昆山）最近才开始派发股息。因此，看来管理层可能已经认为，尽管收益有所下降，但股东还是偏爱分红。
Summary
摘要
On the whole, Long Young Electronic (Kunshan)'s performance is quite a big let-down. Particularly, its ROE is a huge disappointment, not to mention its lack of proper reinvestment into the business. As a result its earnings growth has also been quite disappointing. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总体而言，隆扬电子（昆山）的表现相当令人失望。特别是，其投资回报率令人非常失望，更不用说缺乏对该业务的适当再投资了。因此，其收益增长也相当令人失望。话虽如此，我们研究了分析师的最新预测，发现尽管该公司过去曾缩减收益，但分析师预计其未来收益将增长。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。