Statutory Earnings May Not Be The Best Way To Understand China Health Technology Group Holding's (HKG:1069) True Position
Statutory Earnings May Not Be The Best Way To Understand China Health Technology Group Holding's (HKG:1069) True Position
Despite posting strong earnings, China Health Technology Group Holding Company Limited's (HKG:1069) stock didn't move much over the last week. We looked deeper into the numbers and found that shareholders might be concerned with some underlying weaknesses.
尽管公布了强劲的收益,但中国健康科技集团控股有限公司(HKG: 1069)的股票在上周并没有太大波动。我们更深入地研究了这些数字,发现股东可能会担心一些潜在的弱点。
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A Closer Look At China Health Technology Group Holding's Earnings
仔细看看中国健康科技集团控股的收益
In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
在高金融领域,用于衡量公司将申报的利润转化为自由现金流(FCF)的效果的关键比率是应计比率(来自现金流)。简而言之,该比率从净利润中减去FCF,然后将该数字除以公司在此期间的平均运营资产。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. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
因此,负应计比率对公司来说是正数,而正应计比率是负数。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。这是因为一些学术研究表明,高应计率往往会导致利润下降或利润增长减弱。
China Health Technology Group Holding has an accrual ratio of 3.27 for the year to December 2023. Statistically speaking, that's a real negative for future earnings. To wit, the company did not generate one whit of free cashflow in that time. Even though it reported a profit of CN¥191.9m, a look at free cash flow indicates it actually burnt through CN¥21m in the last year. We saw that FCF was CN¥25m a year ago though, so China Health Technology Group Holding has at least been able to generate positive FCF in the past. However, that's not the end of the story. We must also consider the impact of unusual items on statutory profit (and thus the accrual ratio), as well as note the ramifications of the company issuing new shares. The good news for shareholders is that China Health Technology Group Holding's accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. Shareholders should look for improved cashflow relative to profit in the current year, if that is indeed the case.
截至2023年12月的一年中,中国健康科技集团控股的应计比率为3.27。从统计学上讲,这对未来的收益来说确实是负面的。换句话说,该公司在那段时间内没有产生一点自由现金流。尽管该公司公布了1.919亿加元的利润,但从自由现金流来看,它实际上在去年消耗了2100万加元人民币。但是,我们看到一年前的FCF为2500万元人民币,因此中国健康科技集团控股过去至少能够产生正的FCF。但是,这还不是故事的结局。我们还必须考虑不寻常项目对法定利润(以及应计比率)的影响,并注意公司发行新股的后果。对股东来说,好消息是,中健科技集团控股去年的应计比率要好得多,因此今年的糟糕数据可能只是利润与FCF之间短期不匹配的情况。如果确实如此,股东应寻求在本年度的现金流相对于利润的改善。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of China Health Technology Group Holding.
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中国健康科技集团控股的资产负债表分析。
In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, China Health Technology Group Holding increased the number of shares on issue by 550% over the last twelve months by issuing new shares. Therefore, each share now receives a smaller portion of profit. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of China Health Technology Group Holding's EPS by clicking here.
为了了解每股回报的可能性,必须考虑公司在多大程度上稀释了股东。实际上,中国健康科技集团控股通过发行新股,在过去十二个月中将已发行股票数量增加了550%。因此,每股现在获得的利润比例较小。在庆祝净收入的同时忽略稀释就像欢欣鼓舞,因为你只有一片更大的披萨,但却忽略了披萨现在被切成更多片的事实。您可以点击此处查看中国健康科技集团控股的每股收益图表。
A Look At The Impact Of China Health Technology Group Holding's Dilution On Its Earnings Per Share (EPS)
看看中国健康科技集团控股的稀释对其每股收益(EPS)的影响
Three years ago, China Health Technology Group Holding lost money. And even focusing only on the last twelve months, we don't have a meaningful growth rate because it made a loss a year ago, too. But mathematics aside, it is always good to see when a formerly unprofitable business come good (though we accept profit would have been higher if dilution had not been required). So you can see that the dilution has had a fairly significant impact on shareholders.
三年前,中国健康科技集团控股公司亏损。而且,即使只关注过去的十二个月,我们也没有一个有意义的增长率,因为它在一年前也出现了亏损。但是,抛开数学不谈,看看以前无利可图的企业何时好起来总是件好事(尽管我们承认,如果不要求稀释,利润本来会更高)。因此,你可以看到稀释对股东产生了相当重大的影响。
In the long term, if China Health Technology Group Holding's earnings per share can increase, then the share price should too. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit.
从长远来看,如果中国健康科技集团控股的收益 每股 可以上涨,那么股价也应该上涨。但另一方面,得知利润(但不是每股收益)在改善,我们就不那么兴奋了。对于普通零售股东来说,每股收益是检查您假设的公司利润 “份额” 的好方法。
The Impact Of Unusual Items On Profit
不寻常物品对利润的影响
Given the accrual ratio, it's not overly surprising that China Health Technology Group Holding's profit was boosted by unusual items worth CN¥244m in the last twelve months. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. Which is hardly surprising, given the name. We can see that China Health Technology Group Holding's positive unusual items were quite significant relative to its profit in the year to December 2023. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.
考虑到应计比率,在过去十二个月中,价值2.44亿元人民币的不寻常项目提振了中国健康科技集团控股的利润也就不足为奇了。虽然获得更高的利润总是件好事,但来自不寻常物品的巨额捐款有时会抑制我们的热情。我们统计了全球大多数上市公司的数字,不寻常的物品在自然界中很常见。考虑到这个名字,这并不奇怪。我们可以看到,相对于截至2023年12月的一年中,中国健康科技集团控股的正面不寻常项目相对于其利润相当可观。因此,我们可以推测,这些不寻常的物品使其法定利润明显高于原来的水平。
Our Take On China Health Technology Group Holding's Profit Performance
我们对中健科技集团控股盈利表现的看法
China Health Technology Group Holding didn't back up its earnings with free cashflow, but this isn't too surprising given profits were inflated by unusual items. The dilution means the results are weaker when viewed from a per-share perspective. On reflection, the above-mentioned factors give us the strong impression that China Health Technology Group Holding'sunderlying earnings power is not as good as it might seem, based on the statutory profit numbers. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. While conducting our analysis, we found that China Health Technology Group Holding has 4 warning signs and it would be unwise to ignore them.
中国健康科技集团控股公司没有用自由现金流来支持其收益,但鉴于不寻常的项目夸大了利润,这并不奇怪。稀释意味着从每股的角度来看,业绩会更弱。经过反思,上述因素给我们留下了强烈的印象,即根据法定利润数字,中健科技集团控股的潜在盈利能力并不像看起来的那么好。请记住,在分析股票时,值得注意所涉及的风险。在进行分析时,我们发现中健科技集团控股有4个警告信号,忽视它们是不明智的。
Our examination of China Health Technology Group Holding has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
我们对中健科技集团控股的审查侧重于某些可能使其收益看起来好于实际的因素。而且,在此基础上,我们有些怀疑。但是,还有很多其他方法可以让你对公司的看法。有些人认为高股本回报率是优质业务的好兆头。因此,你可能希望看到这份免费收藏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。
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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。