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Hangzhou Kelin Electric Co., Ltd.'s (SHSE:688611) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?

Hangzhou Kelin Electric Co., Ltd.'s (SHSE:688611) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?

杭州科林電氣有限公司s(SHSE: 688611)股票走強但基本面看起來疲軟:這會對股票產生什麼影響?
Simply Wall St ·  05/11 07:49

Most readers would already be aware that Hangzhou Kelin Electric's (SHSE:688611) stock increased significantly by 79% over the past three months. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. Specifically, we decided to study Hangzhou Kelin Electric's ROE in this article.

大多數讀者已經意識到,杭州科林電氣(上海證券交易所代碼:688611)的股票在過去三個月中大幅增長了79%。但是,在本文中,我們決定重點關注其疲軟的基本面,因爲企業的長期財務表現是最終決定市場業績的因素。具體而言,我們決定在本文中研究杭州科林電氣的投資回報率。

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

ROE或股本回報率是評估公司如何有效地從股東那裏獲得的投資中獲得回報的有用工具。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?

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 Hangzhou Kelin Electric is:

因此,根據上述公式,杭州科林電氣的投資回報率爲:

4.5% = CN¥39m ÷ CN¥848m (Based on the trailing twelve months to March 2024).

4.5% = 3900萬元人民幣 ÷ 8.48億元人民幣(基於截至2024年3月的過去十二個月)。

The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.05 in profit.

“回報” 是指公司去年的收益。另一種思考方式是,公司每擁有價值1元人民幣的股權,就能獲得0.05元的利潤。

What Is The Relationship Between ROE And Earnings Growth?

投資回報率與收益增長之間有什麼關係?

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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.

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。一般而言,在其他條件相同的情況下,股本回報率和利潤留存率高的公司的增長率要高於不具有這些屬性的公司。

A Side By Side comparison of Hangzhou Kelin Electric's Earnings Growth And 4.5% ROE

杭州科林電氣的收益增長和4.5%的投資回報率的並排比較

It is quite clear that Hangzhou Kelin Electric's ROE is rather low. Not just that, even compared to the industry average of 6.9%, the company's ROE is entirely unremarkable. Therefore, it might not be wrong to say that the five year net income decline of 22% seen by Hangzhou Kelin Electric was possibly a result of it having a lower ROE. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For example, the business has allocated capital poorly, or that the company has a very high payout ratio.

很明顯,杭州科林電氣的投資回報率相當低。不僅如此,即使與6.9%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。因此,說杭州科林電氣五年淨收入下降22%可能是其投資回報率降低的結果,這可能沒有錯。我們認爲,可能還有其他方面對公司的盈利前景產生負面影響。例如,該企業的資本分配不佳,或者該公司的派息率非常高。

So, as a next step, we compared Hangzhou Kelin Electric's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 12% over the last few years.

因此,下一步,我們將杭州科林電氣的表現與行業的表現進行了比較,失望地發現,儘管該公司一直在縮減收益,但該行業在過去幾年中一直以12%的速度增長收益。

past-earnings-growth
SHSE:688611 Past Earnings Growth May 10th 2024
SHSE: 688611 過去的收益增長 2024 年 5 月 10 日

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). 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 Hangzhou Kelin Electric's's valuation, check out this gauge of its price-to-earnings ratio, as compared 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。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。如果你想知道杭州科林電氣的估值,可以看看這個衡量其市盈率與行業相比的指標。

Is Hangzhou Kelin Electric Efficiently Re-investing Its Profits?

杭州科林電氣是否有效地將利潤再投資?

With a high three-year median payout ratio of 57% (implying that 43% of the profits are retained), most of Hangzhou Kelin Electric's profits are being paid to shareholders, which explains the company's shrinking earnings. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. You can see the 5 risks we have identified for Hangzhou Kelin Electric by visiting our risks dashboard for free on our platform here.

杭州科林電氣的三年中位數派息率很高,爲57%(這意味着保留了43%的利潤),大部分利潤都支付給了股東,這解釋了該公司收益萎縮的原因。該企業只剩下少量資金可供再投資——從長遠來看,這種惡性循環對公司沒有好處。您可以訪問我們的 5 種風險來查看我們爲杭州科林電氣確定的五種風險 風險儀表板 在我們的平台上免費使用。

In addition, Hangzhou Kelin Electric only recently started paying a dividend so the management probably decided the shareholders prefer dividends even though earnings have been shrinking.

此外,杭州科林電氣直到最近才開始派發股息,因此,儘管收益一直在萎縮,但管理層可能還是決定股東更喜歡分紅。

Conclusion

結論

Overall, we would be extremely cautious before making any decision on Hangzhou Kelin Electric. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. So far, we've only made a quick discussion around the company's earnings growth. To gain further insights into Hangzhou Kelin Electric's past profit growth, check out this visualization of past earnings, revenue and cash flows.

總體而言,在就杭州科林電氣做出任何決定之前,我們將非常謹慎。由於投資回報率低且缺乏對該業務的再投資,該公司的收益增長率令人失望。到目前爲止,我們僅就公司的收益增長進行了簡短的討論。要進一步了解杭州科林電氣過去的利潤增長,請查看這份過去收益、收入和現金流的可視化圖表。

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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