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Eastern Communications Co.,Ltd.'s (SHSE:600776) Stock Is Soaring But Financials Seem Inconsistent: Will The Uptrend Continue?

Eastern Communications Co.,Ltd.'s (SHSE:600776) Stock Is Soaring But Financials Seem Inconsistent: Will The Uptrend Continue?

東方通信公司, Ltd. 's (SHSE: 600776) 股價飆升但財務狀況似乎前後矛盾:上漲趨勢會持續嗎?
Simply Wall St ·  04/29 08:44

Eastern CommunicationsLtd (SHSE:600776) has had a great run on the share market with its stock up by a significant 6.3% over the last week. However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health. Specifically, we decided to study Eastern CommunicationsLtd's ROE in this article.

東方通信有限公司(上海證券交易所代碼:600776)在股市上表現良好,其股票上週大幅上漲了6.3%。但是,我們決定關注公司的基本面,這些基本面似乎並未給公司的財務狀況提供明確的信號。具體而言,我們決定在本文中研究東方通信有限公司的投資回報率。

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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.

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。簡而言之,它衡量公司相對於股東權益的盈利能力。

How Is ROE Calculated?

ROE 是如何計算的?

The formula for ROE is:

ROE 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 Eastern CommunicationsLtd is:

因此,根據上述公式,東方通信有限公司的投資回報率爲:

4.3% = CN¥150m ÷ CN¥3.5b (Based on the trailing twelve months to December 2023).

4.3% = 1.5億元人民幣 ÷ 35億元人民幣(基於截至2023年12月的過去十二個月)。

The 'return' is the income the business earned over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.04 in profit.

“回報” 是企業在過去一年中獲得的收入。這意味着,每獲得價值1元人民幣的股東權益,該公司就會產生0.04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?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.

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。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。

Eastern CommunicationsLtd's Earnings Growth And 4.3% ROE

東方通信有限公司的收益增長和4.3%的投資回報率

It is hard to argue that Eastern CommunicationsLtd's ROE is much good in and of itself. Even when compared to the industry average of 6.3%, the ROE figure is pretty disappointing. Thus, the low net income growth of 4.8% seen by Eastern CommunicationsLtd over the past five years could probably be the result of it having a lower ROE.

很難說東方通信有限公司的投資回報率本身就非常好。即使與6.3%的行業平均水平相比,投資回報率的數字也相當令人失望。因此,東方通信有限公司在過去五年中實現了4.8%的低淨收入增長,可能是其投資回報率較低的結果。

We then compared Eastern CommunicationsLtd's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 12% in the same 5-year period, which is a bit concerning.

然後,我們將東方通信有限公司的淨收入增長與該行業進行了比較,發現該公司的增長數字低於同期12%的行業平均增長率,這有點令人擔憂。

past-earnings-growth
SHSE:600776 Past Earnings Growth April 29th 2024
SHSE: 600776 過去的收益增長 2024 年 4 月 29 日

Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Eastern CommunicationsLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

收益增長是對股票進行估值時要考慮的重要指標。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。通過這樣做,他們將知道股票是走向清澈的藍色海水,還是沼澤的水域在等着你。如果你想知道東方通信有限公司的估值,可以看看這個衡量其與行業相比的市盈率指標。

Is Eastern CommunicationsLtd Making Efficient Use Of Its Profits?

東方通信有限公司是否在有效利用其利潤?

Despite having a normal three-year median payout ratio of 43% (or a retention ratio of 57% over the past three years, Eastern CommunicationsLtd has seen very little growth in earnings as we saw above. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.

儘管東方通信有限公司的三年派息率中位數正常爲43%(或過去三年的留存率爲57%),但如上所示,東方通信有限公司的收益幾乎沒有增長。因此,可能還有其他一些原因可以解釋這方面的不足。例如,業務可能會下滑。

In addition, Eastern CommunicationsLtd 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.

此外,東方通信有限公司至少十年來一直在派發股息,這表明即使以犧牲業務增長爲代價,繼續支付股息對管理層來說也更爲重要。

Conclusion

結論

In total, we're a bit ambivalent about Eastern CommunicationsLtd's performance. 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. To know the 1 risk we have identified for Eastern CommunicationsLtd visit our risks dashboard for free.

總的來說,我們對東方通信有限公司的表現有點矛盾。儘管該公司的利潤保留率確實很高,但其低迴報率可能會阻礙其收益增長。總而言之,我們將謹慎對待這家公司,其中一種方法是研究該業務的風險狀況。要了解我們爲東方通信有限公司確定的第一種風險,請免費訪問我們的風險控制面板。

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.

對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。

譯文內容由第三人軟體翻譯。


以上內容僅用作資訊或教育之目的,不構成與富途相關的任何投資建議。富途竭力但無法保證上述全部內容的真實性、準確性和原創性。
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