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.
麗珠製藥集團（深圳證券交易所代碼：000513）的股票在過去三個月中上漲了13％。鑑於從長遠來看，市場會獎勵強勁的財務狀況，我們想知道在這種情況下是否如此。在本文中，我們決定重點關注麗珠製藥集團的投資回報率。
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.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。換句話說，它是衡量公司股東提供的資本回報率的盈利比率。
How To Calculate Return On Equity?
如何計算股本回報率？
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Livzon Pharmaceutical Group is:
因此，根據上述公式，麗珠製藥集團的投資回報率爲：
14% = CN¥2.0b ÷ CN¥14b (Based on the trailing twelve months to September 2023).
14% = 20億元人民幣 ÷ 140億元人民幣（基於截至2023年9月的過去十二個月）。
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.
“回報” 是每年的利潤。因此，這意味着該公司每投資1元人民幣，就會產生0.14元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報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. 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.
到目前爲止，我們已經了解到，投資回報率衡量的是公司創造利潤的效率。現在，我們需要評估公司再投資或 “保留” 了多少利潤以用於未來的增長，從而使我們對公司的增長潛力有所了解。假設其他一切保持不變，那麼與不一定具有這些特徵的公司相比，投資回報率和利潤保留率越高，公司的增長率就越高。
Livzon Pharmaceutical Group's Earnings Growth And 14% ROE
麗珠製藥集團的收益增長和14％的投資回報率
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，麗珠製藥集團的投資回報率似乎不錯。此外，該公司的投資回報率與行業平均水平的8.3％相比相當不錯。這可能爲麗珠製藥集團在過去五年中實現12％的溫和淨收入增長奠定了基礎。
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.
然後，我們將麗珠製藥集團的淨收入增長與該行業進行了比較，結果顯示該公司的增長與5年同期11％的行業平均增長率相似。
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.
爲公司附加價值的基礎在很大程度上與其收益增長息息相關。投資者接下來需要確定的是，預期的收益增長或缺乏收益是否已經包含在股價中。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。與其他公司相比，麗珠製藥集團的估值是否合理？這3種估值指標可能會幫助您做出決定。
Is Livzon Pharmaceutical Group Making Efficient Use Of Its Profits?
麗珠製藥集團是否在有效利用其利潤？
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.
儘管麗珠製藥集團的三年派息率中位數爲68％（這意味着它保留了32％的利潤），但該公司過去的收益仍有相當大的增長，這意味着其高派息率並未阻礙其增長能力。
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，麗珠製藥集團已經派發股息至少十年或更長時間。這表明該公司致力於與股東分享利潤。
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.
總體而言，我們認爲麗珠製藥集團的表現相當不錯。尤其是高投資回報率，這爲收益的驚人增長做出了貢獻。儘管該公司僅將利潤的一小部分再投資，但它仍然設法增加了收益，因此這是可觀的。既然如此，對分析師最新預測的研究表明，預計該公司未來的收益增長將放緩。要了解有關公司未來收益增長預測的更多信息，請查看這份關於分析師預測的免費報告，以了解更多信息。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論，我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議，也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意，我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之，華爾街沒有持有任何上述股票的頭寸。