Is The Market Rewarding Shandong Mining Machinery Group Co., Ltd. (SZSE:002526) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
Is The Market Rewarding Shandong Mining Machinery Group Co., Ltd. (SZSE:002526) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
Shandong Mining Machinery Group (SZSE:002526) has had a rough three months with its share price down 13%. It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Fundamentals usually dictate market outcomes so it makes sense to study the company's financials. In this article, we decided to focus on Shandong Mining Machinery Group's ROE.
山東礦業機械集團(SZSE：002526)經歷了艱難的三個月，股價下跌了13%。市場可能忽視了該公司不同的財務狀況，決定向負面情緒傾斜。基本面通常決定市場結果，因此研究該公司的財務狀況是有意義的。在本文中，我們決定對山東礦機集團的淨資產收益率進行研究。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率(ROE)是對一家公司增值和管理投資者資金的效率的測試。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。
View our latest analysis for Shandong Mining Machinery Group
查看我們對山東礦機集團的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for return on equity is:
這個股本回報率公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率=(持續經營的)淨利潤？股東權益
So, based on the above formula, the ROE for Shandong Mining Machinery Group is:
因此，根據上述公式，山東礦機集團的淨資產收益率為：
6.5% = CN¥202m ÷ CN¥3.1b (Based on the trailing twelve months to June 2023).
6.5%=2.02億元×31億元(基於截至2023年6月的12個月)。
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.
“報稅表”是過去12個月的稅後收入。這意味著，股東權益每增加1元，公司就會產生0.07元的利潤。
Why Is ROE Important For Earnings Growth?
為什麼淨資產收益率對收益增長很重要？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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.
到目前為止，我們已經瞭解到淨資產收益率衡量的是一家公司創造利潤的效率。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。一般來說，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。
A Side By Side comparison of Shandong Mining Machinery Group's Earnings Growth And 6.5% ROE
山東礦機集團盈利增長與淨資產收益率6.5%的並列比較
When you first look at it, Shandong Mining Machinery Group's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.9%. But Shandong Mining Machinery Group saw a five year net income decline of 12% over the past five years. Bear in mind, the company does have a slightly low ROE. Hence, this goes some way in explaining the shrinking earnings.
乍一看，山東礦機集團的淨資產收益率看起來並沒有那麼誘人。然而，一項更仔細的研究表明，該公司的淨資產收益率與7.9%的行業平均水準相似。但過去五年，山東礦機集團的淨利潤下降了12%。請記住，該公司的淨資產收益率確實略低。因此，這在一定程度上解釋了收益縮水的原因。
That being said, we compared Shandong Mining Machinery Group's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 11% in the same 5-year period.
話雖如此，我們將山東礦機集團的業績與行業進行了比較，當我們發現該公司收益縮水的同時，該行業在相同的5年內以11%的速度增長了收益，這讓我們感到擔憂。
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. Is Shandong Mining Machinery Group fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增長是股票估值的一個重要因素。對於投資者來說，重要的是知道市場是否已經消化了公司預期的收益增長(或下降)。這樣做將有助於他們確定該股的未來看起來是光明的還是不祥的。與其他公司相比，山東礦機集團的估值是否公平？這3個估值指標可能會幫助你做出決定。
Is Shandong Mining Machinery Group Making Efficient Use Of Its Profits?
山東礦機集團是否有效利用了利潤？
While the company did payout a portion of its dividend in the past, it currently doesn't pay a dividend. This implies that potentially all of its profits are being reinvested in the business.
雖然該公司過去確實支付了一部分股息，但目前它不支付股息。這意味著，它的所有利潤可能都將再投資於該業務。
Summary
摘要
On the whole, we feel that the performance shown by Shandong Mining Machinery Group can be open to many interpretations. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. You can see the 2 risks we have identified for Shandong Mining Machinery Group by visiting our risks dashboard for free on our platform here.
總體來說，我們覺得山東礦機集團表現出的表現可以有多種解讀。雖然該公司的利潤留存率確實很高，但其低迴報率可能正在阻礙其收益增長。總而言之，我們將謹慎對待這家公司，其中一種方法是查看業務的風險概況。您可以通過訪問我們的網站查看我們為山東礦機集團確定的兩個風險風險控制面板在我們的平臺上是免費的。
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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.