Are Strong Financial Prospects The Force That Is Driving The Momentum In Livzon Pharmaceutical Group Inc.'s SZSE:000513) Stock?
Are Strong Financial Prospects The Force That Is Driving The Momentum In Livzon Pharmaceutical Group Inc.'s SZSE:000513) Stock?
Livzon Pharmaceutical Group's (SZSE:000513) stock is up by a considerable 13% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Livzon Pharmaceutical Group's ROE.
丽珠制药集团（深圳证券交易所代码：000513）的股票在过去三个月中上涨了13％。鉴于从长远来看，市场会奖励强劲的财务状况，我们想知道在这种情况下是否如此。在本文中，我们决定重点关注丽珠制药集团的投资回报率。
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.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键指标。换句话说，它是衡量公司股东提供的资本回报率的盈利比率。
How To Calculate Return On Equity?
如何计算股本回报率？
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算：
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 Livzon Pharmaceutical Group is:
因此，根据上述公式，丽珠制药集团的投资回报率为：
14% = CN¥2.0b ÷ CN¥14b (Based on the trailing twelve months to September 2023).
14% = 20亿元人民币 ÷ 140亿元人民币（基于截至2023年9月的过去十二个月）。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.14.
“回报” 是每年的利润。因此，这意味着该公司每投资1元人民币，就会产生0.14元人民币的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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。现在，我们需要评估公司再投资或 “保留” 了多少利润以用于未来的增长，从而使我们对公司的增长潜力有所了解。假设其他一切保持不变，那么与不一定具有这些特征的公司相比，投资回报率和利润保留率越高，公司的增长率就越高。
Livzon Pharmaceutical Group's Earnings Growth And 14% ROE
丽珠制药集团的收益增长和14％的投资回报率
At first glance, Livzon Pharmaceutical Group seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 8.3%. This probably laid the ground for Livzon Pharmaceutical Group's moderate 12% net income growth seen over the past five years.
乍一看，丽珠制药集团的投资回报率似乎不错。此外，该公司的投资回报率与行业平均水平的8.3％相比相当不错。这可能为丽珠制药集团在过去五年中实现12％的温和净收入增长奠定了基础。
We then performed a comparison between Livzon Pharmaceutical Group's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 11% in the same 5-year period.
然后，我们将丽珠制药集团的净收入增长与该行业进行了比较，结果显示该公司的增长与5年同期11％的行业平均增长率相似。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. Is Livzon Pharmaceutical Group fairly valued compared to other companies? These 3 valuation measures might help you decide.
为公司附加价值的基础在很大程度上与其收益增长息息相关。投资者接下来需要确定的是，预期的收益增长或缺乏收益是否已经包含在股价中。这样做将帮助他们确定股票的未来是乐观还是不祥的。与其他公司相比，丽珠制药集团的估值是否合理？这3种估值指标可能会帮助您做出决定。
Is Livzon Pharmaceutical Group Making Efficient Use Of Its Profits?
丽珠制药集团是否在有效利用其利润？
While Livzon Pharmaceutical Group has a three-year median payout ratio of 68% (which means it retains 32% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow.
尽管丽珠制药集团的三年派息率中位数为68％（这意味着它保留了32％的利润），但该公司过去的收益仍有相当大的增长，这意味着其高派息率并未阻碍其增长能力。
Besides, Livzon Pharmaceutical Group has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.
此外，丽珠制药集团已经派发股息至少十年或更长时间。这表明该公司致力于与股东分享利润。
Summary
摘要
On the whole, we feel that Livzon Pharmaceutical Group's performance has been quite good. Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. 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.
总体而言，我们认为丽珠制药集团的表现相当不错。尤其是高投资回报率，这为收益的惊人增长做出了贡献。尽管该公司仅将利润的一小部分再投资，但它仍然设法增加了收益，因此这是可观的。既然如此，对分析师最新预测的研究表明，预计该公司未来的收益增长将放缓。要了解有关公司未来收益增长预测的更多信息，请查看这份关于分析师预测的免费报告，以了解更多信息。
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