Should You Be Excited About China National Nuclear Power Co., Ltd.'s (SHSE:601985) 12% Return On Equity?
Should You Be Excited About China National Nuclear Power Co., Ltd.'s (SHSE:601985) 12% Return On Equity?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of China National Nuclear Power Co., Ltd. (SHSE:601985).
我們能夠真正獲益的最佳投資之一就是在自身的知識和技能方面作出努力。受此啓發,本文將詳細介紹我們如何使用淨資產收益率(roe)來更好地理解業務的情況。通過學以致用的方式,我們將以淨資產收益率爲切入點,更好地了解中國核電股份有限公司(SHSE:601985)。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或roe是一項關鍵指標,用於評估公司管理層使用公司資本的效率。換句話說,它揭示了公司將股東的投資轉化爲利潤的成功。
How Do You Calculate Return On Equity?
怎樣計算ROE?
The formula for return on equity is:
權益回報率的計算公式是:
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 China National Nuclear Power is:
所以,根據以上公式,中國核電的roe爲:
12% = CN¥20b ÷ CN¥169b (Based on the trailing twelve months to March 2024).
12% = 200億人民幣 ÷ 1690億人民幣(基於截至2024年3月的過去12個月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.12 in profit.
“回報”是稅後收益,與過去十二個月相比。換句話說,對於每一元的股本,公司能夠獲得0.12元的利潤。
Does China National Nuclear Power Have A Good Return On Equity?
中國核電淨資產收益率好嗎?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, China National Nuclear Power has a better ROE than the average (7.7%) in the Renewable Energy industry.
通過將公司的roe與其行業平均值進行比較,我們可以快速衡量其好壞。 這種方法的侷限性在於一些公司與其他公司相比具有很大差異,甚至在相同的行業分類中也是如此。 如下圖所示,中國核電的roe比可再生能源行業的平均值(7.7%)要好。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240722/0-7f596d0ed32d65aea97e7cb373d99e75-0-d5d3e98b741b82270295b32119708387.png/big)
That's clearly a positive. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. Our risks dashboardshould have the 2 risks we have identified for China National Nuclear Power.
這顯然是一個積極的信號。但請記住,高roe並不一定意味着高效益的利潤收益。特別是當公司使用大量債務來融資,這可能會提高其roe,但高槓杆會使公司面臨風險。我們的風險儀表板中應該有我們爲中國核電確定的2種風險。
How Does Debt Impact Return On Equity?
債務如何影響股東回報率?
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
幾乎所有公司都需要資金來投資業務以增加利潤。 投資的現金可以來自前年的利潤(留存收益),發行新股或借貸。 在前兩種選擇的情況下,roe將反映出這種用於增長的現金。 在後一種情況下,用於增長的債務將改善回報,但不會影響總股本。 這將使roe看起來比不使用債務的情況要好。
Combining China National Nuclear Power's Debt And Its 12% Return On Equity
結合中國核電的債務和其12%的淨資產收益率
It's worth noting the high use of debt by China National Nuclear Power, leading to its debt to equity ratio of 2.00. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是,中國核電使用大量債務,導致其資產負債比率爲2.00。即使使用了大量債務,其roe仍然相當低,這在我們看來不是一個好結果。債務增加了風險,並減少了公司未來的選擇,因此您通常希望從中獲得一些良好的回報。
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
企業獲得利潤並將其返還給股東的能力是企業能否賺錢的有用指標。如果一家公司可以在沒有債務的情況下實現較高的roe,那麼它可以被認爲是一家高質量的企業。如果兩家公司的roe相同,那麼我通常更喜歡負債較少的那一家公司。
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company.
但當一家公司是高品質的時,市場往往會將其競標至反映此事的價格。重要的是要考慮其他因素,例如未來的利潤增長——以及未來需要多少投資。因此,我認爲值得檢查一下關於分析師對該公司預測的免費報告。
Of course China National Nuclear Power may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
當然,中國核電可能不是最佳的購買股票。因此,您可能希望查看此免費收藏的其他具有高roe和低債務的公司。
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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。