Some Investors May Be Willing To Look Past Infinity Development Holdings' (HKG:640) Soft Earnings
Some Investors May Be Willing To Look Past Infinity Development Holdings' (HKG:640) Soft Earnings
The market for Infinity Development Holdings Company Limited's (HKG:640) shares didn't move much after it posted weak earnings recently. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.
无限发展控股有限公司(HKG: 640)在最近公布疲软的收益后,其股票市场没有太大波动。我们认为,较疲软的标题数字可能会被一些积极的潜在因素所抵消。
View our latest analysis for Infinity Development Holdings
查看我们对无限发展控股公司的最新分析
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240127/0-73f5517b3a45d682a5f85aa41f14135f-0-45a062738c6db12f571b56de2fce3775.png/big)
A Closer Look At Infinity Development Holdings' Earnings
仔细研究无限发展控股的收益
Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
许多投资者尚未听说过现金流的应计比率,但它实际上是衡量公司在给定时期内自由现金流(FCF)在多大程度上支持利润的有用指标。应计比率从给定时期的利润中减去FCF,然后将结果除以该时间内公司的平均运营资产。你可以将现金流的应计比率视为 “非FCF利润率”。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
因此,负应计比率对公司来说是正数,正应计比率是负数。这并不意味着我们应该担心应计比率为正,但值得注意的是,应计比率相当高的地方。引用Lewellen和Resutek在2014年发表的一篇论文,“应计额较高的公司未来的利润往往较低”。
Infinity Development Holdings has an accrual ratio of -0.44 for the year to September 2023. Therefore, its statutory earnings were very significantly less than its free cashflow. In fact, it had free cash flow of HK$205m in the last year, which was a lot more than its statutory profit of HK$67.1m. Notably, Infinity Development Holdings had negative free cash flow last year, so the HK$205m it produced this year was a welcome improvement.
截至2023年9月的一年中,Infinity Development Holdings的应计比率为-0.44。因此,其法定收入大大低于其自由现金流。实际上,它去年的自由现金流为2.05亿港元,远远超过其6,710万港元的法定利润。值得注意的是,Infinity Development Holdings去年的自由现金流为负,因此其今年的2.05亿港元是一个可喜的改善。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Infinity Development Holdings.
注意:我们始终建议投资者检查资产负债表的实力。点击此处查看我们对Infinity Development Holdings的资产负债表分析。
Our Take On Infinity Development Holdings' Profit Performance
我们对无限发展控股公司盈利表现的看法
As we discussed above, Infinity Development Holdings' accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Based on this observation, we consider it possible that Infinity Development Holdings' statutory profit actually understates its earnings potential! And on top of that, its earnings per share have grown at 22% per year over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - Infinity Development Holdings has 2 warning signs we think you should be aware of.
正如我们上面讨论的那样,Infinity Development Holdings的应计比率表明利润向自由现金流的强劲转换,这对公司来说是一个积极的利润。基于这一观察,我们认为Infinity Development Holdings的法定利润实际上可能低估了其盈利潜力!最重要的是,在过去三年中,其每股收益以每年22%的速度增长。归根结底,如果你想正确地了解公司,必须考虑的不仅仅是上述因素。考虑到这一点,除非我们对风险有透彻的了解,否则我们不会考虑投资股票。例如,Infinity Development Holdings有两个警告信号,我们认为你应该注意。
This note has only looked at a single factor that sheds light on the nature of Infinity Development Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.
本报告仅研究了揭示Infinity Development Holdings利润性质的单一因素。但是,如果你能够将注意力集中在细节上,总会有更多的事情需要发现。有些人认为高股本回报率是优质业务的好兆头。虽然可能需要你进行一些研究,但你可能会发现这份免费收集的拥有高股本回报率的公司,或者这份内部人士正在购买的股票清单很有用。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。