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Are Zhong Fu Tong Group Co., Ltd.'s (SZSE:300560) Mixed Financials Driving The Negative Sentiment?

Are Zhong Fu Tong Group Co., Ltd.'s (SZSE:300560) Mixed Financials Driving The Negative Sentiment?

是中富通集團有限公司嗎?'s (SZSE: 300560) 金融業喜憂參半推動負面情緒?
Simply Wall St ·  01/18 17:12

Zhong Fu Tong Group (SZSE:300560) has had a rough week with its share price down 13%. It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Fundamentals usually dictate market outcomes so it makes sense to study the company's financials. Specifically, we decided to study Zhong Fu Tong Group's ROE in this article.

中富通集團(深圳證券交易所代碼:300560)經歷了艱難的一週,其股價下跌了13%。看來市場可能完全忽視了公司基本面的積極方面,並決定更多地考慮負面方面。基本面通常決定市場結果,因此研究公司的財務狀況是有意義的。具體而言,我們決定在本文中研究中富通集團的投資回報率。

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.

股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。換句話說,它揭示了公司成功地將股東投資轉化爲利潤。

Check out our latest analysis for Zhong Fu Tong Group

查看我們對中富通集團的最新分析

How To Calculate Return On Equity?

如何計算股本回報率?

The formula for return on equity is:

股本回報率的公式是:

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 Zhong Fu Tong Group is:

因此,根據上述公式,中富通集團的投資回報率爲:

3.3% = CN¥39m ÷ CN¥1.2b (Based on the trailing twelve months to September 2023).

3.3% = 3900萬元人民幣 ÷ 12億元人民幣(基於截至2023年9月的過去十二個月)。

The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.03 in profit.

“回報” 是過去十二個月的利潤。這意味着,公司每獲得價值1元人民幣的股東權益,就會產生0.03CN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?

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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

我們已經確定,投資回報率是衡量公司未來收益的有效盈利指標。根據公司選擇將多少利潤進行再投資或 “保留”,我們便能夠評估公司未來創造利潤的能力。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。

Zhong Fu Tong Group's Earnings Growth And 3.3% ROE

中富通集團的收益增長和3.3%的投資回報率

As you can see, Zhong Fu Tong Group's ROE looks pretty weak. Even compared to the average industry ROE of 13%, the company's ROE is quite dismal. Given the circumstances, the significant decline in net income by 4.2% seen by Zhong Fu Tong Group over the last five years is not surprising. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For example, the business has allocated capital poorly, or that the company has a very high payout ratio.

如你所見,中富通集團的投資回報率看起來相當疲軟。即使與13%的行業平均投資回報率相比,該公司的投資回報率也相當慘淡。在這種情況下,中富通集團在過去五年中淨收入大幅下降了4.2%,這並不奇怪。我們認爲,可能還有其他方面對公司的盈利前景產生負面影響。例如,該企業的資本分配不佳,或者該公司的派息率非常高。

So, as a next step, we compared Zhong Fu Tong Group's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 13% over the last few years.

因此,下一步,我們將中富通集團的表現與行業進行了比較,失望地發現,儘管該公司一直在縮減收益,但該行業在過去幾年中一直以13%的速度增長收益。

past-earnings-growth
SZSE:300560 Past Earnings Growth January 18th 2024
SZSE: 300560 過去的收益增長 2024 年 1 月 18 日

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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 Zhong Fu Tong 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。無論情況如何,投資者都應設法確定預期的收益增長或下降是否已計入其中。然後,這可以幫助他們確定股票是爲光明還是暗淡的未來而佈局。與其他公司相比,中富通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 Zhong Fu Tong Group Making Efficient Use Of Its Profits?

中富通集團是否在有效利用其利潤?

Looking at its three-year median payout ratio of 30% (or a retention ratio of 70%) which is pretty normal, Zhong Fu Tong Group's declining earnings is rather baffling as one would expect to see a fair bit of growth when a company is retaining a good portion of its profits. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.

縱觀其三年派息率中位數爲30%(或70%的留存率),這很正常,中富通集團的收益下降相當令人困惑,因爲人們預計,當一家公司保留很大一部分利潤時,將會出現相當大的增長。看來可能還有其他一些原因可以解釋這方面的不足。例如,業務可能會下滑。

Moreover, Zhong Fu Tong Group has been paying dividends for seven years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer consistent dividends even though earnings have been shrinking.

此外,中富通集團已經派發股息七年了,這是相當長的時間,這表明管理層一定已經意識到,儘管收益一直在萎縮,但股東更喜歡持續的分紅。

Summary

摘要

On the whole, we feel that the performance shown by Zhong Fu Tong Group can be open to many interpretations. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. 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. To know the 4 risks we have identified for Zhong Fu Tong Group visit our risks dashboard for free.

總的來說,我們認爲中富通集團表現出的表現可以有多種解讀。儘管鑑於投資回報率低,它似乎保留了大部分利潤,但投資者畢竟可能無法從所有這些再投資中受益。低收入增長表明我們的理論是正確的。總而言之,我們將謹慎對待這家公司,其中一種方法是研究該業務的風險狀況。要了解我們爲中富通集團確定的四種風險,請免費訪問我們的風險控制面板。

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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.

對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。

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