Zhe Jiang Kangsheng Co.,Ltd.'s (SZSE:002418) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Zhe Jiang Kangsheng Co.,Ltd.'s (SZSE:002418) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity Zhe Jiang KangshengLtd (SZSE:002418) has had a rough three months with its share price down 26%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to Zhe Jiang KangshengLtd's ROE today.
浙江康森藥業股份有限公司（SZSE:002418）近三個月股價下跌26％。然而，該公司的基本面看起來相當不錯，長期財務狀況通常與未來市場價格走勢保持一致。今天特別關注浙江康森藥業股份有限公司的ROE。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
淨資產收益率（ROE）是衡量公司增值和管理投資者資金有效性的測試。換句話說，它是一種盈利能力比率，用於衡量公司股東提供的資金回報率。
How Is ROE Calculated?
淨資產收益率怎麼計算？
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤（從持續經營中獲得）÷ 股東權益
So, based on the above formula, the ROE for Zhe Jiang KangshengLtd is:
因此，根據以上公式，浙江康森藥業股份有限公司的ROE爲：
1.1% = CN¥17m ÷ CN¥1.5b (Based on the trailing twelve months to March 2024).
1.1％= CN¥1700萬 ÷ CN¥15億（截至2024年3月的過去十二個月）。
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.01 in profit.
“返回”是過去十二個月的利潤。這意味着對於每1元股東權益，該公司創造了0.01元利潤。
What Is The Relationship Between ROE And Earnings Growth?
ROE與盈利增長之間的關係是什麼？
So far, we've learned that ROE is a measure of a company's profitability. 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. 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.
到目前爲止，我們已經了解了roe是衡量公司盈利能力的一種指標。根據公司選擇重新投資或“保留”多少利潤，我們就能評估公司未來盈利的能力。一般來說，其他條件相同的情況下，具有高roe和盈利保留的公司比不具備這些屬性的公司增長率更高。
Zhe Jiang KangshengLtd's Earnings Growth And 1.1% ROE
浙江康晟有限公司的淨利潤增長和1.1%的roe
As you can see, Zhe Jiang KangshengLtd's ROE looks pretty weak. Even compared to the average industry ROE of 7.4%, the company's ROE is quite dismal. However, we we're pleasantly surprised to see that Zhe Jiang KangshengLtd grew its net income at a significant rate of 81% in the last five years. We believe that there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.
正如您所見，浙江康晟有限公司的roe看起來相當薄弱。即使與行業平均roe7.4%相比，該公司的roe也相當不盡人意。但是，我們欣喜地發現，在過去五年中，浙江康晟有限公司的淨利潤以顯着的81%的速度增長。我們認爲可能還有其他方面對公司的盈利增長產生了積極的影響。例如，公司具有低分紅比率或被有效管理。
As a next step, we compared Zhe Jiang KangshengLtd's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 12%.
接下來，我們將浙江康晟有限公司的淨收入增長與行業進行了比較，並令人高興的是，我們發現該公司的增長率高於行業平均增長率12%。
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Zhe Jiang KangshengLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益成長是股票估值的一個重要因素。投資者應該試圖確定預期的收益增長或下降（無論是哪種情況）是否已經定價。通過這樣做，他們會了解到股票是否進入了清晰的藍水區，還是等待着沼澤水域。與其他公司相比，浙江康晟有限公司的估值是否合理？這3個估值指標可能會幫助您做出決定。
Is Zhe Jiang KangshengLtd Using Its Retained Earnings Effectively?
浙江康森藥業股份有限公司是否有效利用其未分配利潤？
Given that Zhe Jiang KangshengLtd doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鑑於浙江康森藥業股份有限公司不向股東支付定期股息，我們推斷該公司一直在重新投資其所有利潤以擴大業務規模。
Conclusion
結論
In total, it does look like Zhe Jiang KangshengLtd has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. 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. You can see the 2 risks we have identified for Zhe Jiang KangshengLtd by visiting our risks dashboard for free on our platform here.
總體而言，浙江康晟有限公司在業務方面具有一些積極方面。儘管其回報率較低，但公司將其利潤的很大一部分再投資於業務，無疑有助於其高收益的增長。雖然我們不完全否定該公司，但我們會嘗試確定企業的風險，以做出更明智的決策。您可以通過訪問我們的網站查看我們爲浙江康晟有限公司確定的2個風險。 風險儀表板在瀏覽完所有相關因素確定股票購買價格後，ROE是一個有用的公司質量指標。此外，還需要考慮其他因素，例如未來盈利增長以及未來需要投入多少投資。因此，我認爲值得查看這份免費的詳細收益、營收和現金流圖表。
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對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論，只使用公正的方法論，我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議，也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意，我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
