share_log

Shanghai New World Co., Ltd (SHSE:600628) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?

Shanghai New World Co., Ltd (SHSE:600628) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?

新世界有限公司(上交所代碼:600628)股票表現強勁,但基本面看起來不確定:未來會怎樣?
Simply Wall St ·  2024/12/19 22:45

Most readers would already be aware that Shanghai New World's (SHSE:600628) stock increased significantly by 49% over the past three months. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to Shanghai New World's ROE today.

大多數讀者可能已經意識到,新世界(SHSE:600628)股票在過去三個月內大幅上漲了49%。然而,我們想知道該公司的財務不一致是否會對當前的股票價格動向產生任何不利影響。特別是,我們今天將關注新世界的ROE。

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.

ROE或股本回報率是一個有用的工具,用於評估公司如何有效地利用其股東投入的資金來產生回報。換句話說,它是一個衡量公司股東所提供資本的回報率的盈利能力比率。

How Do You Calculate Return On Equity?

如何計算股本回報率?

ROE can be calculated by using the formula:

ROE可以通過以下公式計算:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

股東權益回報率 = 凈利潤(來自持續運營)÷ 股東權益

So, based on the above formula, the ROE for Shanghai New World is:

所以,基於上述公式,新世界的ROE爲:

1.1% = CN¥45m ÷ CN¥4.2b (Based on the trailing twelve months to September 2024).

1.1% = CN¥4500萬 ÷ CN¥42億(基於截至2024年9月的過去十二個月)。

The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.01 in profit.

'回報'是過去十二個月的利潤。一種理解方式是,對於每CN¥1的股東資本,公司獲得了CN¥0.01的利潤。

What Is The Relationship Between ROE And Earnings Growth?

What Is The Relationship Between ROE And Earnings Growth?

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 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.

到目前爲止,我們已經了解了ROE是衡量公司盈利能力的一個指標。我們現在需要評估公司再投資或「保留」未來增長的利潤量,以此給我們提供公司增長潛力的想法。假設其他所有因素保持不變,ROE和利潤保留率越高,相比不具備這些特徵的公司,這些公司的增長率就越高。

Shanghai New World's Earnings Growth And 1.1% ROE

新世界的盈利增長及1.1% ROE

It is quite clear that Shanghai New World's ROE is rather low. Even when compared to the industry average of 7.7%, the ROE figure is pretty disappointing. Given the circumstances, the significant decline in net income by 7.7% seen by Shanghai New World over the last five years is not surprising. However, there could also be other factors causing the earnings to decline. Such as - low earnings retention or poor allocation of capital.

顯然,新世界的ROE相當低。即使與行業平均水平7.7%相比,ROE數據也是相當失望的。在這種情況下,新世界在過去五年中凈利潤下降7.7%並不令人驚訝。然而,也可能還有其他因素導致盈利下降,比如低盈利留存或資本配置不當。

However, when we compared Shanghai New World's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 9.1% in the same period. This is quite worrisome.

然而,當我們將新世界的增長與行業進行比較時,我們發現雖然公司的盈利一直在減少,但同期行業的盈利增長達到了9.1%。這非常令人擔憂。

big
SHSE:600628 Past Earnings Growth December 20th 2024
SHSE:600628 過去的盈利增長 2024年12月20日

Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. 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 Shanghai New World is trading on a high P/E or a low P/E, relative to its industry.

盈利增長在股票估值中是一個重要因素。投資者需要了解市場是否已經爲公司預期的盈利增長(或下降)定價。這將幫助他們判斷股票的未來是有希望的還是不妙的。一個良好的預期盈利增長指標是市盈率,它決定了市場願意爲股票支付的價格,基於其盈利前景。因此,您可能想檢查一下新世界相對於其行業是在高市盈率還是低市盈率交易。

Is Shanghai New World Using Its Retained Earnings Effectively?

新世界有效利用其留存收益嗎?

In spite of a normal three-year median payout ratio of 48% (that is, a retention ratio of 52%), the fact that Shanghai New World's earnings have shrunk is quite puzzling. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.

儘管過去三年的中位數分紅比率正常爲48%(即保留比率爲52%),但新世界的盈利縮水確實令人困惑。似乎可能有其他原因解釋在這方面的缺乏。例如,業務可能正在下滑。

Moreover, Shanghai New World has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth.

此外,新世界已經至少支付了十年的分紅,這表明管理層可能認爲股東更喜歡分紅而不是盈利增長。

Summary

總結

Overall, we have mixed feelings about Shanghai New World. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. You can see the 2 risks we have identified for Shanghai New World by visiting our risks dashboard for free on our platform here.

總體而言,我們對新世界的看法有些混合。雖然該公司的利潤留存率很高,但其低迴報率可能正在阻礙其盈利增長。總結一下,我們對這家公司需要謹慎行事,而一種方法是查看其業務的風險狀況。您可以通過訪問我們平台上的風險儀表板,免費查看我們爲新世界識別的兩個風險。

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.

對本文有反饋?對內容有疑慮?請直接與我們聯繫。或者,發送電子郵件至 editorial-team (at) simplywallst.com。
這篇來自Simply Wall ST的文章是一般性的。我們根據歷史數據和分析師預測提供評論,採用無偏見的方法,我們的文章並不旨在提供財務建議。它不構成對任何股票的買入或賣出建議,也未考慮到您的目標或財務狀況。我們旨在爲您提供以基本數據驅動的長期分析。請注意,我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall ST在提到的任何股票中均沒有持倉。

声明:本內容僅用作提供資訊及教育之目的,不構成對任何特定投資或投資策略的推薦或認可。 更多信息
    搶先評論