Luxi Chemical Group Co., Ltd.'s (SZSE:000830) Has Been On A Rise But Financial Prospects Look Weak: Is The Stock Overpriced?
Luxi Chemical Group Co., Ltd.'s (SZSE:000830) Has Been On A Rise But Financial Prospects Look Weak: Is The Stock Overpriced?
Luxi Chemical Group (SZSE:000830) has had a great run on the share market with its stock up by a significant 25% over the last three months. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. In this article, we decided to focus on Luxi Chemical Group's ROE.
鲁西化工集团（SZSE: 000830）在股票市场上表现良好，其股票在过去三个月中大幅上涨了25％。但是，在本文中，我们决定重点关注其疲软的基本面，因为企业的长期财务表现是最终决定市场业绩的因素。在本文中，我们决定重点关注鲁西化工集团的投资回报率。
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
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。简而言之，它衡量公司相对于股东权益的盈利能力。
How Is ROE Calculated?
ROE 是如何计算的？
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 Luxi Chemical Group is:
因此，根据上述公式，鲁西化工集团的投资回报率为：
6.0% = CN¥1.1b ÷ CN¥18b (Based on the trailing twelve months to March 2024).
6.0% = 11亿元人民币 ÷ 180亿元人民币（基于截至2024年3月的过去十二个月）。
The 'return' is the income the business earned over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.06 in profit.
“回报” 是企业去年获得的收入。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0.06元的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要？
So far, we've learned that ROE is a measure of a company's profitability. 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.
到目前为止，我们已经了解到，投资回报率是衡量公司盈利能力的指标。根据公司选择将多少利润进行再投资或 “保留”，我们便能够评估公司未来创造利润的能力。一般而言，在其他条件相同的情况下，股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。
A Side By Side comparison of Luxi Chemical Group's Earnings Growth And 6.0% ROE
鲁西化工集团的收益增长和6.0％的投资回报率的并排比较
On the face of it, Luxi Chemical Group's ROE is not much to talk about. However, its ROE is similar to the industry average of 6.3%, so we won't completely dismiss the company. Having said that, Luxi Chemical Group has shown a meagre net income growth of 3.3% over the past five years. Bear in mind, the company's ROE is not very high . So this could also be one of the reasons behind the company's low growth in earnings.
从表面上看，鲁西化工集团的投资回报率没什么好谈的。但是，其投资回报率与行业平均水平的6.3％相似，因此我们不会完全解散该公司。话虽如此，鲁西化工集团在过去五年中表现出微弱的3.3％的净收入增长。请记住，该公司的投资回报率不是很高。因此，这也可能是该公司收益增长缓慢的原因之一。
Next, on comparing with the industry net income growth, we found that Luxi Chemical Group's reported growth was lower than the industry growth of 8.8% over the last few years, which is not something we like to see.
接下来，与行业净收入增长相比，我们发现鲁西化工集团报告的增长低于过去几年8.8％的行业增长，这不是我们希望看到的。
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. This then helps them determine if the stock is placed for a bright or bleak future. Is Luxi Chemical Group fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是股票估值的重要因素。无论如何，投资者应设法确定预期的收益增长或下降是否已计入其中。然后，这可以帮助他们确定股票是面向光明还是暗淡的未来。与其他公司相比，鲁西化工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 Luxi Chemical Group Using Its Retained Earnings Effectively?
鲁西化工集团是否在有效使用其留存收益？
Luxi Chemical Group has a three-year median payout ratio of 68% (implying that it keeps only 32% of its profits), meaning that it pays out most of its profits to shareholders as dividends, and as a result, the company has seen low earnings growth.
鲁西化工集团的三年派息率中位数为68％（这意味着它仅保留了32％的利润），这意味着它将大部分利润作为股息支付给股东，因此，该公司的收益增长缓慢。
In addition, Luxi Chemical Group has been paying dividends over a period of nine years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.
此外，鲁西化工集团在九年内一直在派发股息，这表明即使以牺牲业务增长为代价，维持股息支付对管理层来说也更为重要。
Summary
摘要
On the whole, Luxi Chemical Group's performance is quite a big let-down. Because the company is not reinvesting much into the business, and given the low ROE, it's not surprising to see the lack or absence of growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. 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，鲁西化工集团的表现相当令人失望。由于该公司对业务的再投资不多，而且鉴于投资回报率低，其收益缺乏或没有增长也就不足为奇了。话虽如此，从分析师目前的估计来看，我们发现该公司的收益有望增强。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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