BHCC Holding's (HKG:1552) Anemic Earnings Might Be Worse Than You Think
BHCC Holding's (HKG:1552) Anemic Earnings Might Be Worse Than You Think
The subdued market reaction suggests that BHCC Holding Limited's (HKG:1552) recent earnings didn't contain any surprises. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
市场反应疲软,表明BHCC控股有限公司(HKG: 1552)最近的收益没有任何意外。我们的分析表明,除了疲软的利润数字外,投资者还应意识到这些数字中的其他一些潜在弱点。
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A Closer Look At BHCC Holding's Earnings
仔细研究BHCC Holding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. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow.
用于衡量公司将其利润转换为自由现金流(FCF)的情况的一个关键财务比率是应计比率。简而言之,该比率从净利润中减去FCF,然后将该数字除以该时期公司的平均运营资产。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。
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. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
这意味着负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超出了其利润所暗示的范围。尽管应计比率为正(表明非现金利润达到一定水平)不是问题,但高应计比率可以说是一件坏事,因为它表明纸质利润与现金流不匹配。值得注意的是,有一些学术证据表明,总的来说,高应计比率对短期利润来说是个坏兆头。
Over the twelve months to June 2024, BHCC Holding recorded an accrual ratio of 1.09. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. Even though it reported a profit of S$2.93m, a look at free cash flow indicates it actually burnt through S$52m in the last year. It's worth noting that BHCC Holding generated positive FCF of S$14m a year ago, so at least they've done it in the past. The good news for shareholders is that BHCC 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.
在截至2024年6月的十二个月中,BHCC Holding的应计比率为1.09。通常,这对未来的盈利能力来说是个坏兆头。事实上,在此期间,该公司没有产生任何自由现金流。尽管该公司公布了293万新元的利润,但从自由现金流来看,它实际上在去年消耗了5200万新元。值得注意的是,BHCC Holding一年前创造了1400万新元的正FCF,因此至少他们过去曾这样做过。对股东来说,好消息是,BHCC Holding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之间短期不匹配的例子。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 BHCC 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BHCC Holding的资产负债表分析。
Our Take On BHCC Holding's Profit Performance
我们对BHCC Holding盈利表现的看法
As we discussed above, we think BHCC Holding's earnings were not supported by free cash flow, which might concern some investors. As a result, we think it may well be the case that BHCC Holding's underlying earnings power is lower than its statutory profit. In further bad news, its earnings per share decreased in the last year. 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. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To help with this, we've discovered 4 warning signs (2 are significant!) that you ought to be aware of before buying any shares in BHCC Holding.
正如我们上面讨论的那样,我们认为BHCC Holding的收益没有得到自由现金流的支持,这可能会让一些投资者感到担忧。因此,我们认为BHCC Holding的基础盈利能力很可能低于其法定利润。另一个坏消息是,其每股收益在去年有所下降。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。请记住,在分析股票时,值得注意所涉及的风险。为了帮助解决这个问题,我们发现了 4 个警告信号(2 个很重要!)在购买BHCC Holding的任何股票之前,你应该注意这一点。
This note has only looked at a single factor that sheds light on the nature of BHCC Holding's profit. 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. 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 with significant insider holdings to be useful.
本报告仅研究了揭示BHCC Holding利润性质的单一因素。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。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,或者这份拥有大量内幕持股的股票清单很有用。
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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。