Are Robust Financials Driving The Recent Rally In Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd's (SHSE:603227) Stock?
Are Robust Financials Driving The Recent Rally In Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd's (SHSE:603227) Stock?
Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd (SHSE:603227) has had a great run on the share market with its stock up by a significant 14% over the last month. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd's ROE.
新疆雪峯科技（集團）股份有限公司（SHSE: 603227）在股票市場上表現良好，其股票上個月大幅上漲了14％。由於市場通常會爲公司的長期基本面買單，因此我們決定研究公司的關鍵績效指標，看看它們是否會影響市場。在這篇文章中，我們決定重點關注新疆雪峯科技（集團）股份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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
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，它用於評估公司相對於其股權資本的盈利能力。
How Is ROE Calculated?
ROE 是如何計算的？
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 Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd is:
因此，根據上述公式，新疆雪峯科技（集團）股份有限公司的投資回報率爲：
16% = CN¥838m ÷ CN¥5.2b (Based on the trailing twelve months to September 2023).
16% = 8.38億元人民幣 ÷ 52億元人民幣（基於截至2023年9月的過去十二個月）。
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.16.
“回報” 是指公司去年的收益。因此，這意味着，其股東每投資1元人民幣，公司就會產生0.16元人民幣的利潤。
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 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。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。
Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd's Earnings Growth And 16% ROE
新疆雪峯科技（集團）有限公司的收益增長和16％的投資回報率
At first glance, Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd seems to have a decent ROE. On comparing with the average industry ROE of 7.0% the company's ROE looks pretty remarkable. This certainly adds some context to Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd's exceptional 55% net income growth seen over the past five years. However, there could also be other causes behind this growth. 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.
乍一看，新疆雪峯科技（集團）有限公司的投資回報率似乎不錯。與行業平均投資回報率7.0％相比，該公司的投資回報率看起來相當可觀。這無疑爲新疆雪峯科技（集團）股份有限公司在過去五年中實現了55％的驚人淨收入增長增添了一些背景信息。但是，這種增長背後可能還有其他原因。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。
We then compared Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 12% in the same 5-year period.
然後，我們將新疆雪峯科技（集團）股份有限公司的淨收入增長與該行業進行了比較，我們很高興地看到，與同期5年同期增長12％的行業相比，該公司的增長數字更高。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. 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 Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd is trading on a high P/E or a low P/E, relative 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。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。然後，這可以幫助他們確定股票是爲光明還是暗淡的未來而佈局。衡量預期收益增長的一個很好的指標是市盈率，它根據收益前景決定了市場願意爲股票支付的價格。因此，您可能需要檢查新疆雪峯科技（集團）股份有限公司相對於其行業是高市盈率還是低市盈率。
Is Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd Making Efficient Use Of Its Profits?
新疆雪峯科技（集團）股份有限公司是否在有效利用其利潤？
Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd has a really low three-year median payout ratio of 19%, meaning that it has the remaining 81% left over to reinvest into its business. So it looks like Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd is reinvesting profits heavily to grow its business, which shows in its earnings growth.
新疆雪峯科技（集團）股份有限公司的三年中位數派息率非常低，爲19％，這意味着其剩餘的81％可以再投資於其業務。因此，看來新疆雪峯科技（集團）有限公司正在大量將利潤再投資以發展其業務，這體現在其收益增長上。
Moreover, Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd is determined to keep sharing its profits with shareholders which we infer from its long history of eight years of paying a dividend.
此外，新疆雪峯科技（集團）股份有限公司決心繼續與股東分享利潤，這是我們從其八年派息的悠久歷史中推斷出來的。
Conclusion
結論
Overall, we are quite pleased with Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. 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.
總體而言，我們對新疆雪峯科技（集團）有限公司的表現非常滿意。特別是，很高興看到該公司正在對其業務進行大量投資，再加上高回報率，這爲其收益帶來了可觀的增長。既然如此，對分析師最新預測的研究表明，預計該公司未來的收益增長將放緩。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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