HUNAN RESUN (SZSE:001218) has had a great run on the share market with its stock up by a significant 16% over the last week. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to HUNAN RESUN's ROE today.
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
See our latest analysis for HUNAN RESUN
How To Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for HUNAN RESUN is:
6.7% = CN¥134m ÷ CN¥2.0b (Based on the trailing twelve months to June 2022).
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.07 in profit.
Why Is ROE Important For Earnings Growth?
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. 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.
HUNAN RESUN's Earnings Growth And 6.7% ROE
On the face of it, HUNAN RESUN's ROE is not much to talk about. However, given that the company's ROE is similar to the average industry ROE of 7.4%, we may spare it some thought. On the other hand, HUNAN RESUN reported a moderate 17% net income growth over the past five years. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. For instance, the company has a low payout ratio or is being managed efficiently.
As a next step, we compared HUNAN RESUN's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 9.7%.
SZSE:001218 Past Earnings Growth September 23rd 2022
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about HUNAN RESUN's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is HUNAN RESUN Making Efficient Use Of Its Profits?
With a three-year median payout ratio of 47% (implying that the company retains 53% of its profits), it seems that HUNAN RESUN is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
Summary
Overall, we feel that HUNAN RESUN certainly does have some positive factors to consider. 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. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. 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.
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湖南RESUN(SZSE：001218)的股票在过去的一周里大幅上涨了16%。我们想知道，由于一家公司的长期基本面通常决定着市场结果，该公司的财务状况是否以及在价格变化中扮演了什么角色。特别是今天我们将关注湖南瑞信的净资产收益率。
股本回报率(ROE)是用来评估公司管理层利用公司资本效率的关键指标。简而言之，净资产收益率显示了每一美元相对于其股东投资产生的利润。
查看我们对湖南瑞顺的最新分析
如何计算股本回报率？
股本回报率可使用以下公式计算：
股本回报率=(持续经营的)净利润？股东权益
因此，根据上述公式，湖南RESUN的净资产收益率为：
6.7%=1.34亿元×20亿元(以截至2022年6月的12个月为基础)。
“回报”指的是企业在过去一年中获得的收入。一种概念化的方法是，公司每拥有1元人民币的股东资本，就会获得0.07元人民币的利润。
为什么净资产收益率对收益增长很重要？
到目前为止，我们了解到净资产收益率是衡量一家公司盈利能力的指标。根据公司将这些利润再投资或“保留”多少，以及这样做的效率如何，我们就能够评估一家公司的收益增长潜力。一般来说，在其他条件相同的情况下，股本回报率和利润留存较高的公司比不具备这些特征的公司有更高的增长率。
湖南瑞信的盈利增长和6.7%的净资产收益率
从表面上看，湖南RESUN的净资产收益率(ROE)并不值得谈论。然而，鉴于该公司的净资产收益率(ROE)与7.4%的行业平均ROE相似，我们或许可以省去一些思考。另一方面，湖南RESUN报告称，过去五年净收入温和增长17%。鉴于净资产收益率略低，很可能还有其他一些方面在推动这一增长。例如，该公司的派息率较低或管理效率较高。
下一步，我们将湖南RESUN的净收入增长与行业进行了比较，令人欣喜的是，我们发现该公司看到的增长高于行业平均9.7%的增长。
深交所：过去盈利增长001218 2022年9月23日
盈利增长是股票估值的一个重要因素。对于投资者来说，重要的是知道市场是否已经消化了公司预期的收益增长(或下降)。这样做将有助于他们确定该股的未来看起来是光明的还是不祥的。如果你想知道湖南RESUN的估值，看看这个衡量其市盈率的指标，与其行业相比。
湖南瑞信是否有效利用了利润？
三年的派息率中值为47%(这意味着该公司保留了53%的利润)，看起来湖南RESUN正在以一种高效的方式进行再投资，它看到了收益可观的增长，并支付了丰厚的股息。
摘要
总体而言，我们认为湖南瑞顺确实有一些积极的因素需要考虑。尽管回报率很低，但该公司将很高比例的利润再投资于业务，无疑是其高收益增长的原因。既然如此，最新的分析师预测显示，该公司的收益将继续增长。要了解更多有关该公司未来收益增长预测的信息，请查看以下内容免费报告分析师对该公司的预测，以了解更多信息。
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本文由Simply Wall St.撰写，具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论，我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议，也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意，我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。
