Declining Stock and Decent Financials: Is The Market Wrong About Guoguang Electric Co.,Ltd.Chengdu (SHSE:688776)?
Declining Stock and Decent Financials: Is The Market Wrong About Guoguang Electric Co.,Ltd.Chengdu (SHSE:688776)?
With its stock down 34% over the past three months, it is easy to disregard Guoguang ElectricLtd.Chengdu (SHSE:688776). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to Guoguang ElectricLtd.Chengdu's ROE today.
國光電氣股份有限公司在過去三個月中下跌了34％，很容易忽視成都國光電氣有限公司（上海證券交易所代碼：688776）。但是，該公司的基本面看起來相當不錯，長期財務狀況通常與未來的市場價格走勢一致。特別是，我們今天將關注成都國光電氣股份有限公司的投資回報率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. 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對公司增值和管理投資者資金的有效性的考驗。換句話說，它揭示了公司成功地將股東投資轉化爲利潤。
How Do You Calculate Return On Equity?
你如何計算股本回報率？
The formula for return on equity is:
股本回報率的公式是：
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 Guoguang ElectricLtd.Chengdu is:
因此，根據上述公式，成都國光電氣有限公司的投資回報率爲：
5.0% = CN¥90m ÷ CN¥1.8b (Based on the trailing twelve months to December 2023).
5.0% = 9000萬元人民幣 ÷ 18億元人民幣（基於截至2023年12月的過去十二個月）。
The 'return' is the profit over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.05.
“回報” 是過去十二個月的利潤。因此，這意味着公司每投資1元人民幣，公司就會產生0.05元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要？
So far, we've learned that ROE is a measure of a company's profitability. 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. 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。根據公司選擇將多少利潤進行再投資或 “保留”，我們便能夠評估公司未來創造利潤的能力。假設其他條件都一樣，與功能不相同的公司相比，具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。
Guoguang ElectricLtd.Chengdu's Earnings Growth And 5.0% ROE
國光電氣有限公司成都的收益增長和5.0％的投資回報率
When you first look at it, Guoguang ElectricLtd.Chengdu's ROE doesn't look that attractive. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 7.1% either. Although, we can see that Guoguang ElectricLtd.Chengdu saw a modest net income growth of 15% over the past five years. 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.
當你第一次看時，成都國光電氣有限公司的投資回報率看起來並不那麼吸引人。一項快速的進一步研究表明，該公司的投資回報率與行業平均水平的7.1％相比也並不理想。但是，我們可以看到，成都國光電氣有限公司在過去五年中淨收入溫和增長了15％。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 Guoguang ElectricLtd.Chengdu's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 14% in the same period.
下一步，我們將成都國光電氣有限公司的淨收入增長與該行業的淨收入增長進行了比較，發現與同期14％的行業平均增長率相比，該公司的增長數字相似。
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. Is Guoguang ElectricLtd.Chengdu fairly valued compared to other companies? These 3 valuation measures might help you decide.
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。與其他公司相比，成都國光電氣有限公司的估值是否合理？這3種估值指標可能會幫助您做出決定。
Is Guoguang ElectricLtd.Chengdu Efficiently Re-investing Its Profits?
成都國光電氣有限公司是否有效地將利潤再投資？
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a regular dividend. We infer that the company has been reinvesting all of its profits to grow its business.
儘管該公司過去確實支付了部分股息，但目前不支付定期股息。我們推斷，該公司一直在將其所有利潤再投資以發展業務。
Conclusion
結論
In total, it does look like Guoguang ElectricLtd.Chengdu has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. 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.
總的來說，成都國光電氣有限公司的業務看起來確實有一些積極的方面。儘管回報率很低，但該公司將其利潤的很大一部分再投資於業務這一事實無疑促進了其高收益增長。話雖如此，從分析師目前的估計來看，我們發現該公司的收益有望增強。要了解有關公司未來收益增長預測的更多信息，請查看這份免費的分析師預測報告，以了解更多信息。
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