Declining Stock and Decent Financials: Is The Market Wrong About Chengdu Olymvax Biopharmaceuticals Inc. (SHSE:688319)?
Declining Stock and Decent Financials: Is The Market Wrong About Chengdu Olymvax Biopharmaceuticals Inc. (SHSE:688319)?
Chengdu Olymvax Biopharmaceuticals (SHSE:688319) has had a rough three months with its share price down 45%. 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. Specifically, we decided to study Chengdu Olymvax Biopharmaceuticals' ROE in this article.
成都奧林巴克斯生物製藥（上海證券交易所代碼：688319）經歷了艱難的三個月，其股價下跌了45％。但是，如果你密切關注，你可能會發現其關鍵財務指標看起來相當不錯，考慮到市場通常會獎勵更具彈性的長期基本面，這可能意味着該股有可能在長期內上漲。具體而言，我們決定在本文中研究成都奧林巴克斯生物製藥的投資回報率。
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.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。換句話說，它揭示了公司成功地將股東投資轉化爲利潤。
How Is ROE Calculated?
ROE 是如何計算的？
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
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Chengdu Olymvax Biopharmaceuticals is:
因此，根據上述公式，成都奧林瓦克斯生物製藥的投資回報率爲：
1.9% = CN¥17m ÷ CN¥941m (Based on the trailing twelve months to December 2023).
1.9% = 1700萬元人民幣 ÷ 9.41億元人民幣（基於截至2023年12月的過去十二個月）。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.02.
“回報” 是每年的利潤。因此，這意味着其股東每投資1元人民幣，公司就會產生0.02CN的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
我們已經確定，投資回報率是衡量公司未來收益的有效盈利指標。然後，我們能夠評估公司的收益增長潛力，具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。假設其他一切保持不變，那麼與不一定具有這些特徵的公司相比，投資回報率和利潤保留率越高，公司的增長率就越高。
Chengdu Olymvax Biopharmaceuticals' Earnings Growth And 1.9% ROE
成都奧林巴克斯生物製藥的收益增長和1.9％的投資回報率
It is quite clear that Chengdu Olymvax Biopharmaceuticals' ROE is rather low. Even compared to the average industry ROE of 6.5%, the company's ROE is quite dismal. However, the moderate 16% net income growth seen by Chengdu Olymvax Biopharmaceuticals over the past five years is definitely a positive. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
很明顯，成都奧林瓦克斯生物製藥的投資回報率相當低。即使與6.5％的行業平均投資回報率相比，該公司的投資回報率也相當慘淡。但是，成都奧林瓦克斯生物製藥在過去五年中實現了16％的溫和淨收入增長，這絕對是積極的。我們認爲這裏可能還有其他因素在起作用。例如，公司的管理層可能做出了一些良好的戰略決策，或者公司的派息率很低。
As a next step, we compared Chengdu Olymvax Biopharmaceuticals' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%.
下一步，我們將成都奧林瓦克斯生物製藥的淨收入增長與該行業的淨收入增長進行了比較，令人高興的是，我們發現該公司的增長高於11％的行業平均增長。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Chengdu Olymvax Biopharmaceuticals''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
爲公司附加價值的基礎在很大程度上與其收益增長息息相關。無論如何，投資者應設法確定預期的收益增長或下降是否已計入其中。然後，這可以幫助他們確定股票是面向光明還是暗淡的未來。如果你想知道成都奧林巴克斯生物製藥的估值，可以看看這個衡量其市盈率與行業相比的指標。
Is Chengdu Olymvax Biopharmaceuticals Efficiently Re-investing Its Profits?
成都奧林巴克斯生物製藥是否有效地將其利潤再投資？
Given that Chengdu Olymvax Biopharmaceuticals doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鑑於成都奧林瓦克斯生物製藥不向其股東支付任何股息，我們推斷該公司一直在將所有利潤再投資以發展其業務。
Conclusion
結論
On the whole, we do feel that Chengdu Olymvax Biopharmaceuticals has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總的來說，我們確實認爲成都奧林匹克生物製藥具有一些積極的屬性。儘管投資回報率很低，但由於再投資率很高，該公司的收益實現了可觀的增長。既然如此，分析師的最新預測顯示，該公司的收益將繼續擴大。要詳細了解分析師對公司的最新預測，請查看該公司的分析師預測的可視化。
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