Jiangsu Eastern Shenghong Co.,Ltd. (SZSE:000301) Delivered A Weaker ROE Than Its Industry
Jiangsu Eastern Shenghong Co.,Ltd. (SZSE:000301) Delivered A Weaker ROE Than Its Industry
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Jiangsu Eastern Shenghong Co.,Ltd. (SZSE:000301), by way of a worked example.
尽管一些投资者已经精通财务指标（帽子提示），但本文适用于那些想了解股本回报率（ROE）及其重要性的人。我们将使用投资回报率来考察江苏东方盛虹股份有限公司。，有限公司（深圳证券交易所股票代码：000301），举一个有效的例子。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。换句话说，它揭示了公司成功地将股东投资转化为利润。
Check out our latest analysis for Jiangsu Eastern ShenghongLtd
查看我们对江苏东方盛虹有限公司的最新分析
How Do You Calculate Return On Equity?
你如何计算股本回报率？
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 Jiangsu Eastern ShenghongLtd is:
因此，根据上述公式，江苏东方盛虹股份有限公司的投资回报率为：
3.8% = CN¥1.4b ÷ CN¥38b (Based on the trailing twelve months to September 2023).
3.8% = 14亿元人民币 ÷ 38亿元人民币（基于截至2023年9月的过去十二个月）。
The 'return' is the profit over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.04 in profit.
“回报” 是过去十二个月的利润。另一种思考方式是，公司每拥有价值1元人民币的股权，就能获得0.04元的利润。
Does Jiangsu Eastern ShenghongLtd Have A Good ROE?
江苏东方盛虹股份有限公司的投资回报率是否良好？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Jiangsu Eastern ShenghongLtd has a lower ROE than the average (6.9%) in the Chemicals industry classification.
可以说，评估公司投资回报率的最简单方法是将其与行业平均水平进行比较。但是，这种方法仅在粗略检查时有用，因为各公司在相同的行业分类中确实存在很大差异。如果你看下图，你可以看到江苏东方盛虹有限公司的投资回报率低于化工行业分类中的平均水平（6.9％）。
That's not what we like to see. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. You can see the 4 risks we have identified for Jiangsu Eastern ShenghongLtd by visiting our risks dashboard for free on our platform here.
这不是我们喜欢看到的。但是，低投资回报率并不总是坏事。如果公司的债务水平处于中等至低水平，那么仍然有可能通过使用财务杠杆来提高回报。当一家公司的投资回报率低但债务水平高时，我们会谨慎行事，因为所涉及的风险太高。您可以访问我们的 4 种风险来查看我们为江苏东方盛虹确定的 4 种风险 风险仪表板 在我们的平台上免费使用。
How Does Debt Impact Return On Equity?
债务如何影响股本回报率？
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
公司通常需要投资资金来增加利润。投资现金可以来自上一年的利润（留存收益）、发行新股或借款。在前两种情况下，ROE将利用这种资本来增长。在后一种情况下，增长所需的债务将提高回报，但不会影响股东权益。这将使投资回报率看起来比不使用债务时要好。
Combining Jiangsu Eastern ShenghongLtd's Debt And Its 3.8% Return On Equity
合并江苏东方盛虹股份有限公司的债务及其3.8％的股本回报率
We think Jiangsu Eastern ShenghongLtd uses a significant amount of debt to maximize its returns, as it has a significantly higher debt to equity ratio of 3.24. We consider it to be a negative sign when a company has a rather low ROE despite a rather high debt to equity.
我们认为，江苏东方盛虹股份有限公司使用大量债务来实现回报最大化，因为其负债权益比率要高得多，为3.24。我们认为，尽管负债与股本的比率相当高，但公司的投资回报率却相当低，这是一个负面信号。
Conclusion
结论
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
股本回报率是衡量企业创造利润并将其返还给股东的能力的有用指标。能够在没有债务的情况下实现高股本回报率的公司可以被视为高质量的企业。在其他条件相同的情况下，更高的投资回报率更好。
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.
但是，当企业质量很高时，市场通常会以反映这一点的价格对其进行出价。与股票价格所反映的预期相比，利润增长率尤其需要考虑。因此，我认为可能值得查看这份关于分析师对公司的预测的免费报告。
But note: Jiangsu Eastern ShenghongLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但请注意：江苏东方盛虹股份有限公司可能不是最好的买入股票。因此，来看看这份投资回报率高、债务低的有趣公司的免费清单。
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.
对这篇文章有反馈吗？对内容感到担忧？直接联系我们。 或者，给编辑团队 (at) simplywallst.com 发送电子邮件。
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。