Are LifeTech Scientific Corporation's (HKG:1302) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Are LifeTech Scientific Corporation's (HKG:1302) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity With its stock down 13% over the past three months, it is easy to disregard LifeTech Scientific (HKG:1302). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to LifeTech Scientific's ROE today.
股票下跌了13％，很容易忽略LifeTech Scientific (HKG:1302)。但是，股票价格通常由公司的财务长期推动，在这种情况下，财务状况看起来相当可观。特别是今天我们将关注LifeTech Scientific的roe。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或ROE是一项用于评估公司管理层如何利用公司资本的效率的关键指标。简而言之，它用于评估公司相对于其股本资本的盈利能力。
How To Calculate Return On Equity?
如何计算股东权益报酬率？
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 LifeTech Scientific is:
因此，根据上述公式，LifeTech Scientific的ROE为：
3.2% = CN¥107m ÷ CN¥3.3b (Based on the trailing twelve months to December 2023).
3.2％ = CN¥1.07亿 ÷ CN¥33亿（基于截至2023年12月的过去12个月）。
The 'return' refers to a company's earnings over the last year. That means that for every HK$1 worth of shareholders' equity, the company generated HK$0.03 in profit.
“回报”是指公司在上一年的收益。这意味着每港元股东权益的公司创造了HK$0.03的利润。
What Has ROE Got To Do With Earnings Growth?
ROE与盈利增长有什么关系？
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. 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.
我们已经确定，roe是一个有效的利润生成衡量标准，用于评估公司未来的盈利能力。根据公司再投资或“保留”这些利润的比例以及这样做的有效性，我们能够评估公司的盈利增长潜力。假设其他所有因素保持不变，roe和利润保留的比例越高，相对于没有这些特征的公司，公司的增长率就越高。
LifeTech Scientific's Earnings Growth And 3.2% ROE
LifeTech Scientific的盈利增长和3.2％的roe
As you can see, LifeTech Scientific's ROE looks pretty weak. Even compared to the average industry ROE of 8.6%, the company's ROE is quite dismal. Although, we can see that LifeTech Scientific saw a modest net income growth of 20% over the past five years. We believe that there might be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
可以看出，LifeTech Scientific的ROE看起来相当疲软。即使与平均行业ROE的8.6％进行比较，公司的ROE也相当糟糕。尽管如此，我们可以看到LifeTech Scientific在过去五年中的净利润增长了20％。我们认为可能存在其他积极影响公司收益增长的方面。例如——高收益保留或有效的管理。
As a next step, we compared LifeTech Scientific'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 11%.
作为下一步，我们将LifeTech Scientific的净利润增长与行业进行了比较，令人高兴的是，我们发现公司的增长高于平均行业增长11％。
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. This then helps them determine if the stock is placed for a bright or bleak future. Is LifeTech Scientific fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增长是股票估值的巨大因素。投资者应尽力确定预期的盈利增长或下降是否已定价。这有助于他们确定该股票是处于光明还是黯淡的未来。与其他公司相比，LifeTech Scientific的估值是否合理？这三个估值指标可能会帮助您做出决定。
Is LifeTech Scientific Using Its Retained Earnings Effectively?
LifeTech Scientific是否有效利用其保留收益？
LifeTech Scientific doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above.
LifeTech Scientific目前不支付任何定期股息，这意味着它一直将所有利润再投资到业务中。这肯定有助于我们上面讨论的不错的盈利增长数字。
Conclusion
结论
In total, it does look like LifeTech Scientific has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总的来说，LifeTech Scientific的业务具有一些积极因素。尽管ROE低，但以高比率再投资的情况下，公司设法实现了可观的收益增长。最新的行业分析师预测显示，该公司预计将保持其当前的增长率。要了解有关该公司未来盈利增长预测的更多信息，请查看有关该公司分析师预测的免费报告。
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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
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