Wuchan Zhongda GroupLtd (SHSE:600704) Is Reinvesting At Lower Rates Of Return
Wuchan Zhongda GroupLtd (SHSE:600704) Is Reinvesting At Lower Rates Of Return
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don't think Wuchan Zhongda GroupLtd (SHSE:600704) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
如果我們想要找到一個可以長期倍增的股票，我們該找哪些潛在的趨勢呢？理想情況下，一家企業會展現兩種趨勢；首先是不斷增長的資本僱用回報率（ROCE），其次是越來越多的資本僱用。如果你看到這種情況，通常意味着這是一家擁有優秀業務模式和豐富利潤再投資機會的公司。然而，簡短地過一遍數字後，我們並不認爲武昌中大集團股份有限公司（SHSE：600704）具備未來長期倍增的潛力，但讓我們來看看原因。
What Is Return On Capital Employed (ROCE)?
我們對 Enphase Energy 的資本僱用回報率的看法：正如我們上面看到的，Enphase Energy 的資本回報率沒有提高，但它正在重新投資於業務。投資者必須認爲未來會有更好的前景，因爲股票表現良好，使持股五年以上的股東獲得了 690% 的收益。最終，如果基本趨勢持續存在，我們不會對它成爲一隻多頭股持有期很久很有信心。
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Wuchan Zhongda GroupLtd is:
如果你以前沒有使用過ROCE，它是衡量公司從資本僱用中生成的「回報」（稅前利潤）的公式。在武昌中大集團股份有限公司的這個公式中，計算結果爲:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
資產僱用回報率（ROCE）是指企業利潤，即企業稅前利潤除以企業投入的總資本（負債加股權）。如果ROCE高於企業財務成本的承受能力，那麼企業就會創造出更多的價值。
0.077 = CN¥5.5b ÷ (CN¥204b - CN¥133b) (Based on the trailing twelve months to March 2024).
0.077 = CN¥55億 ÷ (CN¥2040億 - CN¥133b)（基於截至2024年3月的最近12個月）。
So, Wuchan Zhongda GroupLtd has an ROCE of 7.7%. On its own that's a low return, but compared to the average of 5.6% generated by the Retail Distributors industry, it's much better.
因此，武昌中大集團股份有限公司的ROCE爲7.7%。單看這個數字，回報率較低，但與零售分銷業的平均5.6%相比，要好得多。
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating Wuchan Zhongda GroupLtd's past further, check out this free graph covering Wuchan Zhongda GroupLtd's past earnings, revenue and cash flow.
雖然過去並不能代表未來，但了解一家公司歷史表現的情況有助於我們，這就是爲什麼我們有以上圖表來展示。如果你對研究武昌中大集團股份有限公司的歷史表現感興趣，可以查看這份涵蓋了武昌中大集團股份有限公司過去收入、營業額和現金流的免費圖表。
What Can We Tell From Wuchan Zhongda GroupLtd's ROCE Trend?
從武昌中大集團股份有限公司的ROCE趨勢圖中，我們沒有獲得太多信心。在過去的五年中，資本回報率從五年前的10%下降到了7.7%。另一方面，公司在過去一年中增加了更多的資本，但銷售額沒有相應提高，這可能意味着這些投資是長期的玩法。公司可能需要一段時間才能從這些投資中看到任何收益變化。
When we looked at the ROCE trend at Wuchan Zhongda GroupLtd, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 7.7% from 10% five years ago. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It may take some time before the company starts to see any change in earnings from these investments.
另外，值得一提的是，武昌中大集團股份有限公司的流動負債仍然相當高，佔總資產的65%。這可能會帶來一些風險，因爲公司基本上在較大程度上依賴其供應商或其他類型的短期債權人來運營。理想情況下，我們希望看到這種情況得到緩解，因爲這意味着承擔風險的義務越少越好。
On a side note, Wuchan Zhongda GroupLtd's current liabilities are still rather high at 65% of total assets. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.
關於武昌中大集團股份有限公司ROCE的結論是：
The Bottom Line On Wuchan Zhongda GroupLtd's ROCE
綜上所述，武昌中大集團股份有限公司正在向企業內再投資進行資金重啓，但不幸的是，銷售額還沒有明顯增長。不出所料，過去五年股東的總回報率基本持平。無論如何，這隻股票並沒有上述多倍增長的特徵，因此，如果你正在尋找這樣的股票，我們認爲你在其他地方會更幸運。
In summary, Wuchan Zhongda GroupLtd is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Unsurprisingly then, the total return to shareholders over the last five years has been flat. In any case, the stock doesn't have these traits of a multi-bagger discussed above, so if that's what you're looking for, we think you'd have more luck elsewhere.
總的來說，五暢中大集團有限公司正在將資金再投回業務以推動增長，但不幸的是，銷售額目前似乎並沒有增加很多。因此，在過去五年中，股東的總回報也一直保持平穩。無論如何，該股票不具備上面討論的翻倍潛力特徵，所以如果您在尋找這種股票，我們認爲您在其他地方會更幸運。
Wuchan Zhongda GroupLtd does come with some risks though, we found 3 warning signs in our investment analysis, and 2 of those can't be ignored...
然而，五暢中大集團有限公司確實存在一些風險，我們的投資分析中發現了3個警告信號，其中有2個是不能忽視的...
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果您想尋找財務狀況良好、回報卓越的實力強企業，可以免費查看以下公司列表。
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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。