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.
浙江康森药业股份有限公司（SZSE:002418）近三个月股价下跌26％。然而，该公司的基本面看起来相当不错，长期财务状况通常与未来市场价格走势保持一致。今天特别关注浙江康森药业股份有限公司的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.
净资产收益率（ROE）是衡量公司增值和管理投资者资金有效性的测试。换句话说，它是一种盈利能力比率，用于衡量公司股东提供的资金回报率。
How Is ROE Calculated?
净资产收益率怎么计算？
ROE can be calculated by using the formula:
净资产收益率可以使用以下公式进行计算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润（从持续经营中获得）÷ 股东权益
So, based on the above formula, the ROE for Zhe Jiang KangshengLtd is:
因此，根据以上公式，浙江康森药业股份有限公司的ROE为：
1.1% = CN¥17m ÷ CN¥1.5b (Based on the trailing twelve months to March 2024).
1.1％= CN¥1700万 ÷ CN¥15亿（截至2024年3月的过去十二个月）。
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”是过去十二个月的利润。这意味着对于每1元股东权益，该公司创造了0.01元利润。
What Is The Relationship Between ROE And Earnings Growth?
既然我们已经确定ROE是一种有效的利润生成标准，用于评估公司未来的盈利能力，我们现在需要评估公司“保留”为未来增长而重新投资的利润多少，这使我们对公司的增长潜力有了一个了解。一般而言，在其他条件相等的情况下，ROE和利润留存高的公司，增长率比没有这些属性的公司要高。
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.
到目前为止，我们已经了解了ROE是衡量公司盈利能力的一种指标。根据公司选择重新投资或“保留”的利润数量，我们能够评估公司未来产生利润的能力。一般而言，其他条件相等的情况下，具有高股东回报率和利润保留能力的公司比不具备这些属性的公司具有更高的增长率。
Zhe Jiang KangshengLtd's Earnings Growth And 1.1% ROE
浙江康森药业股份有限公司的盈利增长和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.
正如您所看到的，浙江康森药业股份有限公司的ROE看起来相当疲软。即使与平均行业ROE的7.4％相比，该公司的ROE也相当糟糕。但是，我们很高兴看到，在过去五年中，浙江康森药业股份有限公司的净收入以显着的81％的速度增长。我们相信可能存在其他积极影响公司盈利增长的方面。例如，公司有低的派息比率或正在有效地管理。
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%.
作为下一步，我们将浙江康森药业股份有限公司的净收入增长与行业进行了比较，并令人欣喜的是，我们发现公司的增长超过了平均行业增长的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.
盈利增长是股票估值的重要因素。投资者应尝试确定预期的盈利增长或下降，无论哪种情况，是否已经定价。通过这样做，他们将了解股票是否正在进入清澈的蓝色水域，或者等待泥泞的水域。与其他公司相比，浙江康森药业股份有限公司是否公平定价？这3个估值措施可能会帮助您决定。
Is Zhe Jiang KangshengLtd Using Its Retained Earnings Effectively?
浙江康森药业股份有限公司是否有效利用其未分配利润？
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.
鉴于浙江康森药业股份有限公司不向股东支付定期股息，我们推断该公司一直在重新投资其所有利润以扩大业务规模。
Conclusion
结论
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.
总的来说，浙江康森药业股份有限公司的业务确实具有一些积极因素。尽管其收益率较低，但该公司转投资了其大部分利润以扩大业务规模，无疑促进了其高增长。虽然我们不会完全否认该公司，但我们会尝试确定业务风险以做出更明智的决策。您可以通过访问我们的报告来了解我们确定的2个风险，这些风险可能会影响您对该公司的投资决策：风险仪表板在浏览完所有相关因素确定股票购买价格后，ROE是一个有用的公司质量指标。此外，还需要考虑其他因素，例如未来盈利增长以及未来需要投入多少投资。因此，我认为值得查看这份免费的详细收益、营收和现金流图表。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对本文有反馈？关于内容有所顾虑？直接和我们联系。或者，发送电子邮件至editorial-team (at) simplywallst.com。
这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论，只使用公正的方法论，我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议，也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意，我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
