Should Weakness in Zhejiang Yuejian Intelligent Equipment Co.,Ltd.'s (SHSE:603095) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Zhejiang Yuejian Intelligent Equipment Co.,Ltd.'s (SHSE:603095) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
With its stock down 15% over the past week, it is easy to disregard Zhejiang Yuejian Intelligent EquipmentLtd (SHSE:603095). 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. Particularly, we will be paying attention to Zhejiang Yuejian Intelligent EquipmentLtd's ROE today.
由於其股票在過去一週下跌了15％，人們很容易忽視浙江躍健智能設備有限公司（SHSE：603095）。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。特別是，我們今天將關注浙江越健智能設備有限公司的投資回報率。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. 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股東需要考慮的重要因素，因爲它可以告訴他們資本再投資的有效性。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 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 Zhejiang Yuejian Intelligent EquipmentLtd is:
因此，根據上述公式，浙江越健智能設備有限公司的投資回報率爲：
3.4% = CN¥86m ÷ CN¥2.5b (Based on the trailing twelve months to September 2023).
3.4% = 8600萬元人民幣 ÷ 25億元人民幣（基於截至2023年9月的過去十二個月）。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.03 in profit.
“回報” 是過去十二個月的稅後收入。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0.03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？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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，投資回報率衡量的是公司創造利潤的效率。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。
Zhejiang Yuejian Intelligent EquipmentLtd's Earnings Growth And 3.4% ROE
浙江躍健智能設備有限公司的收益增長和3.4％的投資回報率
As you can see, Zhejiang Yuejian Intelligent EquipmentLtd's ROE looks pretty weak. Not just that, even compared to the industry average of 7.5%, the company's ROE is entirely unremarkable. Despite this, surprisingly, Zhejiang Yuejian Intelligent EquipmentLtd saw an exceptional 25% net income growth over the past five years. Therefore, there could be other reasons behind this growth. For instance, the company has a low payout ratio or is being managed efficiently.
如你所見，浙江躍健智能設備有限公司的投資回報率看起來相當疲軟。不僅如此，即使與7.5％的行業平均水平相比，該公司的投資回報率也完全不引人注目。儘管如此，令人驚訝的是，浙江越健智能設備有限公司在過去五年中實現了25％的驚人淨收入增長。因此，這種增長背後可能還有其他原因。例如，該公司的派息率很低或管理得很高效。
We then compared Zhejiang Yuejian Intelligent EquipmentLtd'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 11% in the same 5-year period.
然後，我們將浙江躍健智能設備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5年同期增長率爲11％的行業相比，該公司的增長數字更高。
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. 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 Zhejiang Yuejian Intelligent EquipmentLtd is trading on a high P/E or a low P/E, relative to its industry.
收益增長是股票估值的重要因素。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。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水域在等着呢。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，您可能需要檢查一下相對於其行業，浙江躍健智能設備有限公司的交易市盈率是高還是低。
Is Zhejiang Yuejian Intelligent EquipmentLtd Using Its Retained Earnings Effectively?
浙江躍健智能設備有限公司是否在有效使用其留存收益？
Zhejiang Yuejian Intelligent EquipmentLtd has a three-year median payout ratio of 33% (where it is retaining 67% of its income) which is not too low or not too high. By the looks of it, the dividend is well covered and Zhejiang Yuejian Intelligent EquipmentLtd is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
浙江躍健智能設備有限公司的三年派息率中位數爲33％（保留了收入的67％），不太低或不太高。從表面上看，股息覆蓋範圍很大，浙江越健智能設備有限公司正在有效地對其利潤進行再投資，我們上面討論的其非凡增長就證明了這一點。
Besides, Zhejiang Yuejian Intelligent EquipmentLtd has been paying dividends over a period of three years. This shows that the company is committed to sharing profits with its shareholders.
此外，浙江越健智能設備有限公司已經在三年內派發了股息。這表明該公司致力於與股東分享利潤。
Conclusion
結論
In total, it does look like Zhejiang Yuejian Intelligent EquipmentLtd 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. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 3 risks we have identified for Zhejiang Yuejian Intelligent EquipmentLtd visit our risks dashboard for free.
總的來說，看起來浙江越健智能設備有限公司的業務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其業務這一事實無疑促進了其高收益增長。雖然我們不會完全解散公司，但我們要做的是努力確定業務的風險，以便在公司周圍做出更明智的決定。要了解我們爲浙江越健智能設備有限公司確定的三種風險，請免費訪問我們的風險儀表板。
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