Chongqing Zongshen Power Machinery Co.,Ltd's (SZSE:001696) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Chongqing Zongshen Power Machinery Co.,Ltd's (SZSE:001696) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Most readers would already be aware that Chongqing Zongshen Power MachineryLtd's (SZSE:001696) stock increased significantly by 5.5% over the past week. However, we decided to pay close attention to its weak financials as we are doubtful that the current momentum will keep up, given the scenario. In this article, we decided to focus on Chongqing Zongshen Power MachineryLtd's ROE.
大多数读者已经意识到，重庆宗申动力机械有限公司（SZSE：001696）的股票在过去一周大幅上涨了5.5％。但是，我们决定密切关注其疲软的财务状况，因为考虑到这种情况，我们怀疑当前的势头能否保持不变。在本文中，我们决定重点关注重庆宗申动力机械有限公司的投资回报率。
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.
股本回报率或投资回报率是股东需要考虑的重要因素，因为它可以告诉他们资本再投资的有效性。简而言之，它衡量公司相对于股东权益的盈利能力。
See our latest analysis for Chongqing Zongshen Power MachineryLtd
查看我们对重庆宗申动力机械有限公司的最新分析
How Is ROE Calculated?
ROE 是如何计算的？
Return on equity can be calculated by using the formula:
股本回报率可以使用以下公式计算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营业务）÷ 股东权益
So, based on the above formula, the ROE for Chongqing Zongshen Power MachineryLtd is:
因此，根据上述公式，重庆宗申动力机械有限公司的投资回报率为：
7.3% = CN¥387m ÷ CN¥5.3b (Based on the trailing twelve months to September 2023).
7.3% = 3.87亿元人民币 ¥53亿元人民币（基于截至2023年9月的过去十二个月）。
The 'return' is the amount earned after tax over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.07 in profit.
“回报” 是过去十二个月的税后收入。这意味着，每持有价值1元人民币的股权，公司就会产生0.07元人民币的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系？
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. 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.
到目前为止，我们已经了解到，投资回报率衡量的是公司创造利润的效率。然后，我们能够评估公司的收益增长潜力，具体取决于公司对这些利润进行再投资或 “保留” 了多少及其有效性。一般而言，在其他条件相同的情况下，股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。
A Side By Side comparison of Chongqing Zongshen Power MachineryLtd's Earnings Growth And 7.3% ROE
重庆宗申动力机械有限公司的收益增长和7.3％的投资回报率的并行比较
When you first look at it, Chongqing Zongshen Power MachineryLtd's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.4%. Still, Chongqing Zongshen Power MachineryLtd has seen a flat net income growth over the past five years. Bear in mind, the company's ROE is not very high. Hence, this provides some context to the flat earnings growth seen by the company.
当你第一次看的时候，重庆宗申动力机械有限公司的投资回报率看起来并不那么吸引人。然而，一项更仔细的研究表明，该公司的投资回报率与7.4％的行业平均水平相似。尽管如此，在过去五年中，重庆宗申动力机械有限公司的净收入增长持平。请记住，该公司的投资回报率不是很高。因此，这为该公司持平的收益增长提供了一些背景信息。
Next, on comparing with the industry net income growth, we found that Chongqing Zongshen Power MachineryLtd's reported growth was lower than the industry growth of 3.8% over the last few years, which is not something we like to see.
接下来，与行业净收入增长相比，我们发现重庆宗申动力机械有限公司报告的增长低于过去几年3.8％的行业增长，这是我们不希望看到的。
Earnings growth is an important metric to consider when valuing a stock. 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. Is Chongqing Zongshen Power MachineryLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是估值股票时要考虑的重要指标。对于投资者来说，重要的是要知道市场是否影响了公司的预期收益增长（或下降）。然后，这可以帮助他们确定股票是面向光明还是黯淡的未来。与其他公司相比，重庆宗申动力机械有限公司的估值是否公平？这三种估值指标可能有助于您做出决定。
Is Chongqing Zongshen Power MachineryLtd Efficiently Re-investing Its Profits?
重庆宗申动力机械有限公司是否有效地将其利润再投资？
Chongqing Zongshen Power MachineryLtd has a high three-year median payout ratio of 63% (or a retention ratio of 37%), meaning that the company is paying most of its profits as dividends to its shareholders. This does go some way in explaining why there's been no growth in its earnings.
重庆宗申动力机械有限公司的三年期中位数派息率很高，为63％（或留存率为37％），这意味着该公司将大部分利润作为股息支付给股东。这确实在某种程度上解释了为什么其收益没有增长。
Additionally, Chongqing Zongshen Power MachineryLtd has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth.
此外，重庆宗申动力机械有限公司已在至少十年的时间内派发了股息，这意味着即使这意味着收益增长微乎其微，公司管理层也决心支付股息。
Summary
摘要
In total, we would have a hard think before deciding on any investment action concerning Chongqing Zongshen Power MachineryLtd. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals. You can do your own research on Chongqing Zongshen Power MachineryLtd and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows.
总的来说，在决定对重庆宗申动力机械有限公司采取任何投资行动之前，我们会仔细考虑。由于投资回报率低以及对业务缺乏大量再投资，该公司的收益增长率令人失望。到目前为止，我们只是通过观察公司的基本面来了解公司过去的业绩。你可以自己研究重庆宗申动力机械有限公司，并通过查看这张免费的过去收益、收入和现金流详细图表来了解其过去的表现。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论，我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议，也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意，我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之，华尔街没有持有任何上述股票的头寸。