Olympic Circuit Technology's (SHSE:603920) Solid Earnings Are Supported By Other Strong Factors
Olympic Circuit Technology's (SHSE:603920) Solid Earnings Are Supported By Other Strong Factors
The subdued stock price reaction suggests that Olympic Circuit Technology Co., Ltd's (SHSE:603920) strong earnings didn't offer any surprises. Investors are probably missing some underlying factors which are encouraging for the future of the company.
股价反应疲软,表明奥林匹克赛道技术有限公司(SHSE: 603920)的强劲收益并未带来任何意外。投资者可能遗漏了一些对公司未来来说令人鼓舞的潜在因素。
A Closer Look At Olympic Circuit Technology's Earnings
仔细看看奥运巡回科技的收益
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF.
用于衡量公司将其利润转化为自由现金流(FCF)的效果的一个关键财务比率是应计比率。为了获得应计比率,我们首先从一段时间内的利润中减去FCF,然后将该数字除以该期间的平均运营资产。该比率向我们显示了公司的利润超过其FCF的程度。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
这意味着负的应计比率是一件好事,因为它表明该公司带来的自由现金流比其利润所暗示的要多。尽管应计比率为正并不成问题,表示非现金利润达到一定水平,但高应计比率可以说是一件坏事,因为它表明票面利润与现金流不匹配。引用Lewellen和Resutek在2014年发表的一篇论文,“应计收入较高的公司将来的利润往往会降低”。
For the year to December 2023, Olympic Circuit Technology had an accrual ratio of -0.24. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of CN¥1.2b, well over the CN¥495.5m it reported in profit. Notably, Olympic Circuit Technology had negative free cash flow last year, so the CN¥1.2b it produced this year was a welcome improvement. Notably, the company has issued new shares, thus diluting existing shareholders and reducing their share of future earnings.
在截至2023年12月的一年中,奥林匹克赛道科技公司的应计比率为-0.24。这意味着它的现金转化率非常好,而且其去年的收益实际上大大低估了其自由现金流。事实上,在过去的十二个月中,它报告的自由现金流为12亿元人民币,远远超过其公布的利润4.955亿元人民币。值得注意的是,奥林匹克赛道科技公司去年的自由现金流为负,因此其今年的12亿元人民币是一个可喜的改善。值得注意的是,该公司发行了新股,从而稀释了现有股东并减少了他们在未来收益中所占的份额。
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
这可能会让你想知道分析师对未来盈利能力的预测。幸运的是,您可以单击此处查看根据他们的估计描绘未来盈利能力的交互式图表。
In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, Olympic Circuit Technology increased the number of shares on issue by 24% over the last twelve months by issuing new shares. Therefore, each share now receives a smaller portion of profit. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. Check out Olympic Circuit Technology's historical EPS growth by clicking on this link.
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,奥林匹克赛道科技通过发行新股,在过去十二个月中将已发行股票数量增加了24%。因此,每股现在获得的利润比例较小。在不注意每股收益的情况下谈论净收益,就是被大数字分散注意力,而忽略与之交谈的较小数字 每股 价值。点击此链接,查看奥林匹克赛道科技公司的历史每股收益增长情况。
A Look At The Impact Of Olympic Circuit Technology's Dilution On Its Earnings Per Share (EPS)
看看奥林匹克巡回科技的稀释对其每股收益(EPS)的影响
As you can see above, Olympic Circuit Technology has been growing its net income over the last few years, with an annualized gain of 63% over three years. And over the last 12 months, the company grew its profit by 14%. But in comparison, EPS only increased by 14% over the same period. So you can see that the dilution has had a fairly significant impact on shareholders.
如上所示,奥林匹克赛道科技在过去几年中一直在增长其净收入,三年内年化增长63%。在过去的12个月中,该公司的利润增长了14%。但相比之下,同期每股收益仅增长了14%。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, earnings per share growth should beget share price growth. So it will certainly be a positive for shareholders if Olympic Circuit Technology can grow EPS persistently. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow.
从长远来看,收益 每股 增长应该带来股价的增长。因此,如果奥林匹克赛道科技能够持续增长每股收益,这对股东来说肯定是利好的。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。出于这个原因,你可以说从长远来看,每股收益比净收入更重要,前提是目标是评估公司的股价是否可能上涨。
Our Take On Olympic Circuit Technology's Profit Performance
我们对奥运赛道科技盈利表现的看法
In conclusion, Olympic Circuit Technology has strong cashflow relative to earnings, which indicates good quality earnings, but the dilution means its earnings per share growth is weaker than its profit growth. Based on these factors, we think that Olympic Circuit Technology's profits are a reasonably conservative guide to its underlying profitability. If you'd like to know more about Olympic Circuit Technology as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for Olympic Circuit Technology and we think they deserve your attention.
总之,相对于收益而言,奥林匹克赛道科技的现金流强劲,这表明收益质量良好,但摊薄意味着其每股收益增长弱于其利润增长。基于这些因素,我们认为奥林匹克赛道科技的利润是衡量其潜在盈利能力的相当保守的指南。如果您想进一步了解奥林匹克赛道技术作为一家企业,请务必了解其面临的任何风险。在Simply Wall St,我们发现了两个奥运巡回技术警示标志,我们认为它们值得你关注。
Our examination of Olympic Circuit Technology has focussed on certain factors that can make its earnings look better than they are. 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. 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.
我们对奥林匹克巡回技术的审查侧重于某些可能使其收益看起来好于实际的因素。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。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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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.
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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。