Declining Stock and Solid Fundamentals: Is The Market Wrong About Top Energy Company Ltd.Shanxi (SHSE:600780)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Top Energy Company Ltd.Shanxi (SHSE:600780)?
Top Energy CompanyShanxi (SHSE:600780) has had a rough three months with its share price down 13%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Top Energy CompanyShanxi's ROE in this article.
頂級能源公司山西（SHSE: 600780）經歷了艱難的三個月，其股價下跌了13％。但是，仔細觀察其良好的財務狀況可能會讓你重新考慮。鑑於基本面通常會推動長期市場業績，該公司值得關注。具體而言，我們決定在本文中研究頂級能源公司山西的投資回報率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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，它是衡量公司股東提供的資本回報率的盈利比率。
How To Calculate Return On Equity?
如何計算股本回報率？
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算：
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 Top Energy CompanyShanxi is:
因此，根據上述公式，頂級能源公司山西的投資回報率爲：
9.5% = CN¥679m ÷ CN¥7.2b (Based on the trailing twelve months to September 2023).
9.5% = 6.79億元人民幣 ÷ 72億元人民幣（基於截至2023年9月的過去十二個月）。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.09 in profit.
“回報” 是企業在過去一年中獲得的收入。將其概念化的一種方法是，公司每擁有1元人民幣的股東資本，公司就會獲得0.09元的利潤。
What Has ROE Got To Do With Earnings Growth?
投資回報率與收益增長有什麼關係？
So far, we've learned that ROE is a measure of a company's profitability. 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.
到目前爲止，我們已經了解到，投資回報率是衡量公司盈利能力的指標。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。
Top Energy CompanyShanxi's Earnings Growth And 9.5% ROE
頂級能源公司山西的收益增長和9.5％的投資回報率
At first glance, Top Energy CompanyShanxi's ROE doesn't look very promising. However, the fact that the company's ROE is higher than the average industry ROE of 7.1%, is definitely interesting. Especially when you consider Top Energy CompanyShanxi's exceptional 30% net income growth over the past five years. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. Therefore, the growth in earnings could also be the result of other factors. For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.
乍一看，頂級能源公司山西的投資回報率看起來並不十分樂觀。但是，該公司的投資回報率高於7.1％的行業平均投資回報率，這一事實絕對很有趣。尤其是考慮到頂級能源公司山西在過去五年中實現了30％的驚人淨收入增長。請記住，該公司的投資回報率確實適度低。只是行業的投資回報率較低。因此，收益的增長也可能是其他因素的結果。例如，整個行業可能正在經歷高增長階段，或者該公司的派息率很低。
As a next step, we compared Top Energy CompanyShanxi's 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 6.4%.
下一步，我們將山西頂級能源公司的淨收入增長與該行業進行了比較，令人高興的是，我們發現該公司的增長高於行業平均增長6.4％。
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. If you're wondering about Top Energy CompanyShanxi's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增長是股票估值的重要因素。對於投資者來說，重要的是要知道市場是否對公司的預期收益增長（或下降）進行了定價。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。如果你想知道頂級能源公司山西的估值，可以看看這個衡量其市盈率與行業相比的指標。
Is Top Energy CompanyShanxi Using Its Retained Earnings Effectively?
頂級能源公司山西能否有效利用其留存收益？
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. This is likely what's driving the high earnings growth number discussed above.
儘管該公司過去確實支付了部分股息，但目前不支付股息。這可能是推動上述高收益增長數字的原因。
Conclusion
結論
On the whole, we feel that Top Energy CompanyShanxi's performance has been quite good. Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion.
總體而言，我們認爲頂級能源公司山西的表現相當不錯。具體而言，我們喜歡它一直在以適度的回報率再投資其很大一部分利潤，從而實現了收益的擴張。
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