Are Want Want China Holdings Limited's (HKG:151) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Are Want Want China Holdings Limited's (HKG:151) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Want Want China Holdings (HKG:151) has had a rough week with its share price down 7.4%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Particularly, we will be paying attention to Want Want China Holdings' ROE today.
中国旺旺控股(HKG:151)上周股价下跌了7.4%。但是,如果你仔细观察,可能会发现它的主要财务指标看起来相当不错,这意味着股票在长期内可能会上涨,因为市场通常会奖励那些长期基本面更为强劲的股票。特别是,我们将关注中国旺旺控股今天的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股东权益回报率(ROE)是检验公司增加其价值和管理投资者资金有效性的测试。简而言之,ROE显示每个美元的利润与其股东的投资有关。
How Is ROE Calculated?
净资产收益率怎么计算?
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 Want Want China Holdings is:
因此,根据上述公式,中国旺旺控股的roe为:
24% = CN¥4.0b ÷ CN¥16b (Based on the trailing twelve months to March 2024).
24%= CN¥40亿 ÷ CN¥160亿(基于截至2024年3月的过去十二个月)
The 'return' is the yearly profit. One way to conceptualize this is that for each HK$1 of shareholders' capital it has, the company made HK$0.24 in profit.
'回报'是年度利润。一个概念化的方式是,对于每一港元的股东资本,公司创造了0.24港元的利润。
What Is The Relationship Between ROE And Earnings Growth?
ROE与盈利增长之间的关系是什么?
So far, we've learned that ROE is a measure of a company's profitability. 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.
到目前为止,我们已经了解到roe是衡量公司盈利能力的指标。我们现在需要评估公司重新投资或“保留”的利润量,从而给我们提供有关公司增长潜力的想法。其他条件相同的情况下,roe和利润保留率均较高的公司通常是增长率比没有这些特征的公司高的公司。
Want Want China Holdings' Earnings Growth And 24% ROE
中国旺旺控股的盈利增长和24%的roe
First thing first, we like that Want Want China Holdings has an impressive ROE. Second, a comparison with the average ROE reported by the industry of 9.0% also doesn't go unnoticed by us. However, we are curious as to how the high returns still resulted in a flat growth for Want Want China Holdings in the past five years. So, there could be some other aspects that could potentially be preventing the company from growing. These include low earnings retention or poor allocation of capital
首先,我们喜欢中国旺旺控股有印象深刻的roe。其次,与行业报告的平均roe 9.0%相比,我们也目不转睛地关注。然而,我们对于高回报仍导致中国旺旺控股在过去五年内盈利增长停滞感到好奇。所以,可能有一些其他方面可能阻止公司增长。这些包括低盈利保留或资本配置不善
Next, we compared Want Want China Holdings' performance against the industry and found that the industry shrunk its earnings at 1.1% in the same period, which suggests that the company's earnings have been shrinking at a slower rate than its industry, This does offer shareholders some relief
接下来,我们将中国旺旺控股的表现与行业进行了比较,并发现行业在同期内收益下降了1.1%,这表明公司的盈利相对于行业的下降速度较缓,这的确为股东带来了一些缓解
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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. 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 Want Want China Holdings 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一个重要因素。投资者应该试着确定预期的盈利增长或下降是否已经计价进去。通过这样做,他们将有一个想法,这支股票是朝着清澈的蓝水前进还是即将陷入泥泞的境地。一个好的预期盈利增长指标是市盈率,它根据股票的盈利前景决定市场愿意为其支付的价格。因此,您可以查看中国旺旺控股的市盈率是高还是低,相对于其所在的行业。
Is Want Want China Holdings Making Efficient Use Of Its Profits?
中国旺旺控股是否有效利用了其利润?
Want Want China Holdings has a high three-year median payout ratio of 53% (or a retention ratio of 47%), meaning that the company is paying most of its profits as dividends to its shareholders. This does go some way in explaining why there's been no growth in its earnings.
中国旺旺控股三年的中位数支付比率为53%(保留比率为47%),这意味着公司将大部分利润作为股息支付给股东。这在一定程度上解释了为什么其盈利没有增长。
In addition, Want Want China Holdings has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 76% over the next three years. However, the company's ROE is not expected to change by much despite the higher expected payout ratio.
此外,中国旺旺控股已经连续支付股息至少十年,这表明即使以牺牲业务增长为代价,保持股息的支付对管理层来说更加重要。从当前的分析师一致数据来看,我们可以看到公司未来的支付比率预计将在未来三年内上升到76%。然而,尽管预期支付比率较高,公司的roe预计不会有太大变化。
Summary
总的来说,我们对伟明环保的表现非常满意。具体而言,我们喜欢公司以高回报率再投资了其利润的很大一部分。当然,这导致公司的收益大幅增长。但是,最新的行业分析师预测表明,该公司的收益预计将加速增长。
In total, it does look like Want Want China Holdings has some positive aspects to its business. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE. Bear in mind, the company reinvests a small portion of its profits, which means that investors aren't reaping the benefits of the high rate of return. 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.
总的来说,中国旺旺控股有些积极的业务方面。尽管业绩增长不高,ROE也高,但我们对公司利润不断增长的缺乏感到失望。需要注意的是,公司将其利润的一小部分再投资,这意味着投资者无法获得高投资回报率的益处。尽管如此,根据当前分析师预测,我们发现公司的盈利增长率有望大幅改善。要了解更多关于公司未来盈利增长预测的信息,请查看此份关于该公司分析师预测的免费报告。
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