Hangzhou Alltest Biotech (SHSE:688606) Shareholders Should Be Cautious Despite Solid Earnings
Hangzhou Alltest Biotech (SHSE:688606) Shareholders Should Be Cautious Despite Solid Earnings
Following the release of a positive earnings report recently, Hangzhou Alltest Biotech Co., Ltd.'s (SHSE:688606) stock performed well. Despite this, we feel that there are some reasons to be cautious with these earnings.
继最近发布正面收益报告后,杭州奥测生物技术有限公司s (SHSE: 688606) 股票表现良好。尽管如此,我们认为有一些理由对这些收益持谨慎态度。
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Zooming In On Hangzhou Alltest Biotech's Earnings
放大杭州Alltest Biotech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). 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. This ratio tells us how much of a company's profit is not backed by free cashflow.
在高级财务中,用于衡量公司将报告的利润转换为自由现金流(FCF)的关键比率是应计比率(来自现金流)。为了获得应计比率,我们首先从一段时期的利润中减去FCF,然后将该数字除以该期间的平均运营资产。这个比率告诉我们,一家公司的利润中有多少没有自由现金流的支持。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. 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。虽然应计比率高于零并不令人担忧,但我们确实认为,当公司的应计比率相对较高时,值得注意。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。
Over the twelve months to June 2024, Hangzhou Alltest Biotech recorded an accrual ratio of 0.39. As a general rule, that bodes poorly for future profitability. To wit, the company did not generate one whit of free cashflow in that time. Over the last year it actually had negative free cash flow of CN¥147m, in contrast to the aforementioned profit of CN¥233.3m. Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of CN¥147m, this year, indicates high risk. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part.
在截至2024年6月的十二个月中,杭州奥泰生物科技的应计比率为0.39。通常,这对未来的盈利能力来说是个坏兆头。换句话说,该公司在那段时间内没有产生一点自由现金流。去年,它的自由现金流实际上为负14700万元人民币,而上述利润为23330万元人民币。在去年自由现金流为负的背景下,我们想象一些股东可能会怀疑其今年14700万元的现金消耗是否表明存在高风险。话虽如此,故事还有更多。应计比率至少部分反映了不寻常项目对法定利润的影响。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Hangzhou Alltest Biotech.
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杭州奥特生物科技的资产负债表分析。
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 Hangzhou Alltest Biotech's profit was boosted by unusual items worth CN¥44m in the last twelve months. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And that's as you'd expect, given these boosts are described as 'unusual'. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is).
考虑到应计比率,在过去的十二个月中,杭州奥泰生物科技的利润因价值4400万元人民币的不寻常项目而提振也就不足为奇了。我们不能否认更高的利润通常会让我们感到乐观,但如果利润是可持续的,我们更愿意这样做。当我们计算数千家上市公司的数字时,我们发现,特定年份中不寻常的项目所带来的提振通常不会在第二年重演。这正如你所预料的那样,因为这些增强被描述为 “不寻常”。假设这些不寻常的项目在本年度不会再次出现,因此我们预计明年的利润将疲软(也就是说,在业务没有增长的情况下)。
Our Take On Hangzhou Alltest Biotech's Profit Performance
我们对杭州奥特生物科技盈利表现的看法
Hangzhou Alltest Biotech had a weak accrual ratio, but its profit did receive a boost from unusual items. For the reasons mentioned above, we think that a perfunctory glance at Hangzhou Alltest Biotech's statutory profits might make it look better than it really is on an underlying level. If you'd like to know more about Hangzhou Alltest Biotech as a business, it's important to be aware of any risks it's facing. For instance, we've identified 3 warning signs for Hangzhou Alltest Biotech (2 can't be ignored) you should be familiar with.
杭州奥泰生物科技的应计比率较低,但其利润确实受到不寻常项目的提振。出于上述原因,我们认为,敷衍地看一眼杭州奥特生物科技的法定利润可能会使其看起来比实际水平要好。如果您想进一步了解杭州奥泰生物科技的业务,请务必了解其面临的任何风险。例如,我们已经确定了你应该熟悉的杭州奥测生物科技的3个警告信号(其中2个不容忽视)。
Our examination of Hangzhou Alltest Biotech 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 with high insider ownership.
我们对杭州Alltest Biotech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拥有高股本回报率的公司的免费集合,或者这份内部所有权高的股票清单。
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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。