<div id="readability-page-1"><div><p>With its stock down 6.3% over the past month, it is easy to disregard Qingdao Port International (HKG:6198).   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.     In this article, we decided to focus on Qingdao Port International's  ROE.</p><p> 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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. </p><p>This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.</p><h2> How To Calculate Return On Equity? </h2><p> <strong>ROE can be calculated by using the formula:</strong> </p><p> Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity </p><p>So, based on the above formula, the ROE for Qingdao Port International is:</p><p>12% = CN¥6.0b ÷ CN¥50b (Based on the trailing twelve months to September 2025).</p><p> The 'return' is the yearly profit.  That means that for every HK$1 worth of shareholders' equity, the company generated HK$0.12 in profit. </p><p><span> Check out our latest analysis for Qingdao Port International </span></p> <h2> Why Is ROE Important For Earnings Growth? </h2><p> We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  We now need to evaluate how much profit the company reinvests or &#34;retains&#34; for future growth which then gives us an idea about the growth potential of the company.  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. </p><h2> A Side By Side comparison of Qingdao Port International's Earnings Growth And 12% ROE </h2><p> At first glance, Qingdao Port International seems to have a decent ROE.   On comparing with the average industry ROE of 6.9% the company's ROE looks pretty remarkable.   Probably as a result of this, Qingdao Port International was able to see a decent growth of 7.9% over the last five years.    </p><p> As a next step, we compared Qingdao Port International's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 2.1%.   </p><figure><img height="668" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/264504741-past-earnings-growth-1-dark-2/1765498928903?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1642" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/264504741-past-earnings-growth-1-dark-2/1765498928903"/><figcaption>SEHK:6198 Past Earnings Growth December 12th 2025</figcaption></figure><p> 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).   This then helps them determine if the stock is placed for a bright or bleak future.    One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Qingdao Port International is trading on a high P/E or a low P/E, relative to its industry.   </p><h2> Is Qingdao Port International Using Its Retained Earnings Effectively?  </h2> <p> Qingdao Port International has a healthy combination of a moderate three-year median payout ratio of 39% (or a retention ratio of 61%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.   </p> <p> Additionally, Qingdao Port International has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.      Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 41% of its profits over the next three years.   As a result, Qingdao Port International's ROE is not expected to change by much either, which we inferred from the analyst estimate of 10% for future ROE.    </p> <h2> Summary  </h2> <p>On the whole, we feel that Qingdao Port International's performance has been quite good.      In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings.       With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down.     Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.</p></div></div>

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<p>Qingdao Port International's stock has declined by 6.3% recently, but its strong financials, including a 12% ROE, suggest potential long-term value. The company's ROE is higher than the industry average, and it has shown decent earnings growth. Despite expected slower growth, its efficient use of retained earnings and consistent dividend payouts indicate solid financial management. Investors should consider these factors when evaluating the stock's future prospects.</p>

Simplywall

QDPI

QINGDAO PORT

Qingdao Port International Co., Ltd. (HKG:6198) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?