Declining Stock and Decent Financials: Is The Market Wrong About Shanghai Kelai Mechatronics Engineering Co.,Ltd. (SHSE:603960)?
Declining Stock and Decent Financials: Is The Market Wrong About Shanghai Kelai Mechatronics Engineering Co.,Ltd. (SHSE:603960)?
With its stock down 20% over the past three months, it is easy to disregard Shanghai Kelai Mechatronics EngineeringLtd (SHSE:603960). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study Shanghai Kelai Mechatronics EngineeringLtd's ROE in this article.
由於股票在過去三個月下跌了20%,容易忽略上海科萊機電工程有限公司(SHSE:603960)。然而,公司的基本面看起來相當不錯,長期的財務狀況通常與未來的市場價格走勢相一致。具體來說,我們決定在本文中研究上海科萊機電工程有限公司的ROE。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東權益回報率ROE是測試公司增值能力和管理股東投資的有效性的指標。更簡單地說,它衡量公司在股東權益中的盈利能力。
How Is ROE Calculated?
淨資產收益率怎麼計算?
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算:
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 Shanghai Kelai Mechatronics EngineeringLtd is:
因此,根據上述公式,上海科萊機電工程有限公司的ROE爲:
8.3% = CN¥91m ÷ CN¥1.1b (Based on the trailing twelve months to March 2024).
8.3%= CN¥9100萬÷CN¥11億(截至2024年3月的過去十二個月)。
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.08 in profit.
「回報」是每年的利潤。換句話說,對於每一元人民幣的股權,公司能夠賺取0.08元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定,roe作爲一種有效的盈利預測工具,可爲公司未來的盈利能力提供參考。基於公司選擇重新投資或「保留」的利潤比例,我們可以評估其未來盈利能力。總的來說,在其他條件相等的情況下,roe和利潤保留比例高的公司比那些不具備這些特點的公司增長速度更快。
Shanghai Kelai Mechatronics EngineeringLtd's Earnings Growth And 8.3% ROE
上海科萊機電工程有限公司的盈利增長和8.3%的ROE
At first glance, Shanghai Kelai Mechatronics EngineeringLtd's ROE doesn't look very promising. Although a closer study shows that the company's ROE is higher than the industry average of 6.9% which we definitely can't overlook. But seeing Shanghai Kelai Mechatronics EngineeringLtd's five year net income decline of 8.2% over the past five years, we might rethink that. Remember, the company's ROE is a bit low to begin with, just that it is higher than the industry average. Hence, this goes some way in explaining the shrinking earnings.
乍一看,上海科萊機電工程有限公司的ROE看起來並不是很有前途。儘管進一步研究表明,該公司的ROE高於6.9%的行業平均水平,這是我們絕對不能忽略的。但考慮到上海科萊機電工程有限公司在過去五年中的淨收入下降了8.2%,我們可能需要重新評估一下。請記住,該公司的ROE起點比較低,只是高於行業平均水平。因此,這在一定程度上解釋了收益減少的原因。
So, as a next step, we compared Shanghai Kelai Mechatronics EngineeringLtd's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 9.5% over the last few years.
因此,作爲下一步,我們將上海科萊機電工程有限公司的表現與行業進行了比較,很失望地發現,儘管該公司一直在收縮其收益,但行業的收益在過去幾年中以9.5%的速度增長。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. Is 603960 fairly valued? This infographic on the company's intrinsic value has everything you need to know.
賦予公司價值的基礎在很大程度上與其收益增長有關。 對於投資者來說,知道市場是否已經定價了公司預期的收益增長(或下降)非常重要。通過這樣做,他們會知道股票是前進到清澈的藍色水域還是面臨着泥濘的水域。603960是否定價合理?該公司的內在價值信息圖就有您想知道的一切。
Is Shanghai Kelai Mechatronics EngineeringLtd Efficiently Re-investing Its Profits?
上海科萊機電工程有限公司是否有效地再投資其利潤?
In spite of a normal three-year median payout ratio of 31% (that is, a retention ratio of 69%), the fact that Shanghai Kelai Mechatronics EngineeringLtd's earnings have shrunk is quite puzzling. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.
儘管普通三年中位數的股息支付比率爲31%(即留存比率爲69%),但上海科萊機電工程有限公司的收益萎縮還是令人困惑。 因此,可能有其他解釋。例如,該公司的業務可能正在惡化。
Additionally, Shanghai Kelai Mechatronics EngineeringLtd has paid dividends over a period of seven years, which means that the company's management is rather focused on keeping up its dividend payments, regardless of the shrinking earnings.
此外,上海科萊機電工程有限公司已經連續七年支付股息,這意味着該公司的管理層非常關注保持其股息支付,而不考慮收益的下降。
Conclusion
結論
On the whole, we do feel that Shanghai Kelai Mechatronics EngineeringLtd has some positive attributes. Although, we are disappointed to see a lack of growth in earnings even in spite of a moderate ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. 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.
總體而言,我們確實認爲上海科萊機電工程有限公司具有一些積極因素。儘管如此,我們對收益缺乏增長感到失望,即使ROE適中,再投資率也很高。我們認爲可能存在一些外部因素對業務產生了負面影響。話雖如此,根據當前的分析師預測,我們發現該公司的收益增長率有望大幅提高。要了解有關該公司未來收益增長預測的更多信息,請查看有關分析師預測的這份免費報告。
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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。