Declining Stock and Solid Fundamentals: Is The Market Wrong About Hangzhou Honghua Digital Technology Stock Company LTD. (SHSE:688789)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Hangzhou Honghua Digital Technology Stock Company LTD. (SHSE:688789)?
With its stock down 13% over the past three months, it is easy to disregard Hangzhou Honghua Digital Technology Stock (SHSE:688789). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Hangzhou Honghua Digital Technology Stock's ROE.
过去三个月股票下跌了13%,很容易忽视杭州红花数字科技股票(SHSE:688789)。 但是,仔细观察其良好的财务状况可能会让您再次思考。 由于基本面通常是长期市场结果的驱动力,因此值得关注该公司。 在本文中,我们决定重点关注杭州红花数字科技股票的roe。
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.
roe或权益回报率是评估公司有效利用股东投资产生回报效率的有用工具。简而言之,roe显示每个股东投资所产生的利润。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
The formula for ROE is:
roe的公式是:
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 Hangzhou Honghua Digital Technology Stock is:
因此,基于上述公式,杭州红花数字科技股票的roe为:
12% = CN¥358m ÷ CN¥3.0b (Based on the trailing twelve months to March 2024).
12%= CN¥3,5800万元 ÷ CN¥30亿(基于截至2024年3月的过去十二个月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.12 in profit.
“回报”是企业在过去一年中赚取的收入。这样来理解,对于每1元人民币的股东资本,公司获得了0.12元的利润。
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。
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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 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.
我们已经确认roe是一个有效的盈利指标,用于衡量公司未来的盈利能力。现在我们需要评估公司为未来增长重新投资或“保留”的利润有多少,这将给我们提供有关公司增长潜力的想法。假设其他一切相等,具有更高回报率和更高盈利保留的公司通常比没有同样特点的公司具有更高的增长率。
Hangzhou Honghua Digital Technology Stock's Earnings Growth And 12% ROE
杭州红花数字科技股票的盈利增长和12%roe
To begin with, Hangzhou Honghua Digital Technology Stock seems to have a respectable ROE. Especially when compared to the industry average of 6.9% the company's ROE looks pretty impressive. Probably as a result of this, Hangzhou Honghua Digital Technology Stock was able to see a decent growth of 17% over the last five years.
首先,与行业平均水平6.9%的公司roe相比,杭州红花数字科技股票似乎拥有可观的roe。 由于这一点,杭州红花数字科技股票在过去五年中能够看到17%的相当不错的增长。
Next, on comparing with the industry net income growth, we found that Hangzhou Honghua Digital Technology Stock's growth is quite high when compared to the industry average growth of 9.5% in the same period, which is great to see.
接下来,在将净利润增长与行业平均增长率9.5%进行比较后,我们发现杭州红花数字科技的增长相当高,这比同期行业平均增长率要高得多,这是非常好的。
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Earnings growth is a huge factor in stock valuation. 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 Hangzhou Honghua Digital Technology Stock is trading on a high P/E or a low P/E, relative to its industry.
盈利增长是股票估值的重要因素。 投资者知道市场是否已经定价了公司的预期盈利增长(或下降)非常重要。这样做,他们将了解该股票是否进入清晰的蓝水区域,或者是否等待沼泽水域。 预期盈利增长的一个良好指标是P/E比率,它根据其收益前景确定市场愿意为一支股票支付的价格。 所以,您可能需要查看杭州红花数字科技股票的P/E是高还是低,相对于其行业而言。
Is Hangzhou Honghua Digital Technology Stock Making Efficient Use Of Its Profits?
杭州红花数字科技股票是否有效利用其利润?
Hangzhou Honghua Digital Technology Stock's three-year median payout ratio to shareholders is 18% (implying that it retains 82% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business.
杭州红花数字科技股票的三年中位数股东红利支付比率为18%(表明其留存82%的收入),这是偏低的,因此看起来管理层正在大量重新投资以增长业务。
While Hangzhou Honghua Digital Technology Stock has been growing its earnings, it only recently started to pay dividends which likely means that the company decided to impress new and existing shareholders with a dividend.
尽管杭州红花数字科技股票一直在增长收益,但它仅最近开始支付股息,这可能意味着公司决定以股息印象新股东和现有股东。
Conclusion
结论
On the whole, we feel that Hangzhou Honghua Digital Technology Stock's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. 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.
总的来说,我们认为杭州红花数字科技的表现相当不错。 具体来说,我们喜欢该公司以高回报率重新投资其利润的大部分。 当然,这导致了公司利润的大幅增长。 尽管如此,在查看当前的分析师估计时,我们发现公司的收益预计将获得动力。 这些分析师预期是基于行业广泛预期,还是基于公司的基本面? 点击此处以访问有关公司的分析师预测页面。
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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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈?对内容感到担忧?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。