Is Sumec Corporation Limited's (SHSE:600710) Latest Stock Performance A Reflection Of Its Financial Health?
Is Sumec Corporation Limited's (SHSE:600710) Latest Stock Performance A Reflection Of Its Financial Health?
Sumec (SHSE:600710) has had a great run on the share market with its stock up by a significant 15% over the last three months. 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. Particularly, we will be paying attention to Sumec's ROE today.
蘇美克（SHSE: 600710）在股票市場上表現良好，其股票在過去三個月中大幅上漲了15％。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。特別是，我們今天將關注蘇美達的投資回報率。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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。換句話說，它是衡量公司股東提供的資本回報率的盈利比率。
How Is ROE Calculated?
ROE 是如何計算的？
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算：
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 Sumec is:
因此，根據上述公式，Sumec的投資回報率爲：
23% = CN¥3.1b ÷ CN¥14b (Based on the trailing twelve months to March 2024).
23% = 31億元人民幣 ÷ 140億元人民幣（基於截至2024年3月的過去十二個月）。
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.23 in profit.
“回報” 是過去十二個月的利潤。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0.23元人民幣的利潤。
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. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
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。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。假設其他一切保持不變，那麼與不一定具有這些特徵的公司相比，投資回報率和利潤保留率越高，公司的增長率就越高。
A Side By Side comparison of Sumec's Earnings Growth And 23% ROE
蘇美達的收益增長和23％的投資回報率的並排比較
To start with, Sumec's ROE looks acceptable. Especially when compared to the industry average of 6.2% the company's ROE looks pretty impressive. Probably as a result of this, Sumec was able to see a decent growth of 19% over the last five years.
首先，蘇美達的投資回報率似乎可以接受。特別是與6.2％的行業平均水平相比，該公司的投資回報率看起來相當可觀。可能是由於這個原因，Sumec得以在過去五年中實現了19％的可觀增長。
Next, on comparing with the industry net income growth, we found that Sumec's growth is quite high when compared to the industry average growth of 11% in the same period, which is great to see.
接下來，與行業淨收入增長相比，我們發現，與同期行業平均增長11％相比，蘇美達的增長相當高，這真是太好了。
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 Sumec 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，您可能需要檢查相對於其行業而言，Sumec的市盈率是高還是低。
Is Sumec Making Efficient Use Of Its Profits?
Sumec是否在有效利用其利潤？
Sumec has a three-year median payout ratio of 42%, which implies that it retains the remaining 58% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
蘇美達的三年派息率中位數爲42％，這意味着它保留了剩餘的58％的利潤。這表明其股息覆蓋範圍良好，鑑於該公司的可觀增長，管理層似乎正在有效地對其收益進行再投資。
Moreover, Sumec is determined to keep sharing its profits with shareholders which we infer from its long history of seven years of paying a dividend.
此外，蘇美達決心繼續與股東分享利潤，這是我們從其七年支付股息的長期歷史中推斷出來的。
Conclusion
結論
In total, we are pretty happy with Sumec's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總的來說，我們對Sumec的表現非常滿意。具體而言，我們喜歡該公司以高回報率再投資其利潤的很大一部分。當然，這導致該公司的收益大幅增長。在研究分析師當前的估計時，我們發現分析師預計該公司將繼續保持最近的增長勢頭。要詳細了解分析師對公司的最新預測，請查看該公司的分析師預測的可視化。
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