With its stock down 10% over the past week, it is easy to disregard Vinda International Holdings (HKG:3331). But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Vinda International Holdings' ROE today.
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.
See our latest analysis for Vinda International Holdings
How Is ROE Calculated?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Vinda International Holdings is:
10% = HK$1.3b ÷ HK$13b (Based on the trailing twelve months to June 2022).
The 'return' is the yearly profit. So, this means that for every HK$1 of its shareholder's investments, the company generates a profit of HK$0.10.
What Has ROE Got To Do With Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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.
Vinda International Holdings' Earnings Growth And 10% ROE
To begin with, Vinda International Holdings seems to have a respectable ROE. On comparing with the average industry ROE of 8.1% the company's ROE looks pretty remarkable. This probably laid the ground for Vinda International Holdings' significant 24% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
We then compared Vinda International Holdings' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 16% in the same period.
SEHK:3331 Past Earnings Growth September 11th 2022
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Vinda International Holdings fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Vinda International Holdings Making Efficient Use Of Its Profits?
The three-year median payout ratio for Vinda International Holdings is 30%, which is moderately low. The company is retaining the remaining 70%. By the looks of it, the dividend is well covered and Vinda International Holdings is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
Moreover, Vinda International Holdings is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 35%. However, Vinda International Holdings' ROE is predicted to rise to 13% despite there being no anticipated change in its payout ratio.
Summary
Overall, we are quite pleased with Vinda International Holdings' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. 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.
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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.
在過去一週股價下跌10%的情況下,很容易忽視維達國際控股(HKG:3331)。但如果你仔細觀察,你可能會猜到,它強勁的財務狀況可能意味着,考慮到市場通常會獎勵財務狀況良好的公司,該股可能會在長期內增值。特別是,我們今天將關注維達國際控股公司的淨資產收益率。
股本回報率或淨資產收益率是股東要考慮的一個重要因素,因為它告訴他們他們的資本再投資的效率。簡而言之,它衡量的是一家公司相對於股東權益的盈利能力。
查看我們對維達國際控股的最新分析
淨資產收益率是如何計算的?
這個股本回報率公式是:
股本回報率=(持續經營的)淨利潤?股東權益
因此,根據上述公式,維達國際控股的淨資產收益率為:
10%=13億港元×130億港元(根據截至2022年6月的過去12個月計算)。
“回報”就是年度利潤。因此,這意味着股東每投資1港元,公司就會產生0.10港元的利潤。
淨資產收益率與盈利增長有什麼關係?
我們已經證實,淨資產收益率是一家公司未來收益的有效盈利指標。根據公司選擇再投資或“保留”多少利潤,我們就能夠評估一家公司未來產生利潤的能力。一般來説,在其他條件相同的情況下,股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
維達國際控股的盈利增長和10%的淨資產收益率
首先,維達國際控股似乎擁有令人尊敬的淨資產收益率。與8.1%的行業平均淨資產收益率相比,該公司的淨資產收益率看起來相當可觀。這可能為維達國際控股在過去五年中實現24%的顯著淨利潤增長奠定了基礎。我們認為,可能還有其他方面正在積極影響公司的收益增長。例如-高收益留存或有效的管理到位。
然後,我們將維達國際控股的淨收入增長與行業進行了比較,我們很高興地看到,與同期16%的行業增長率相比,該公司的增長數字更高。
聯交所:3331過去盈利增長2022年9月11日
盈利增長是股票估值的一個重要因素。投資者應該嘗試確定預期的收益增長或下降是否已計入價格,無論是哪種情況。通過這樣做,他們將知道股票是將進入清澈的藍色水域,還是等待沼澤水域。與其他公司相比,維達國際控股的估值是否公平?這3個估值指標可能會幫助你做出決定。
維達國際控股公司是否在有效利用其利潤?
維達國際控股的三年派息率中值為30%,略低。該公司將保留剩餘的70%。從表面上看,股息得到了很好的覆蓋,維達國際控股公司正在有效地將其利潤進行再投資,這一點從我們上面討論的非凡增長中可見一斑。
此外,維達國際控股公司決心繼續與股東分享其利潤,這是我們從其至少十年來支付股息的長期歷史中推斷出來的。我們最新的分析師數據顯示,該公司未來三年的派息率預計約為35%。然而,維達國際控股的淨資產收益率預計將上升至13%,儘管其派息率沒有預期的變化。
摘要
總體而言,我們對維達國際控股的表現相當滿意。特別是,我們喜歡該公司對其業務進行大量再投資,並以高回報率進行投資。不出所料,這導致了令人印象深刻的收益增長。在研究了分析師目前的預測後,我們發現,分析師預計該公司將繼續最近的增長勢頭。要了解更多分析師對該公司的最新預測,請查看分析師對該公司預測的可視化。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。