RENHENG Enterprise Holdings' (HKG:3628) Earnings Are Weaker Than They Seem
RENHENG Enterprise Holdings' (HKG:3628) Earnings Are Weaker Than They Seem
RENHENG Enterprise Holdings Limited's (HKG:3628) robust earnings report didn't manage to move the market for its stock. We did some digging, and we found some concerning factors in the details.
RENHENG Enterprise Holdings Limited(HKG:3628)的强劲盈利报告并未能推动其股票市场。我们进行了一些调查,发现了一些细节中令人担忧的因素。
A Closer Look At RENHENG Enterprise Holdings' Earnings
深入了解RENHENG Enterprise Holdings的盈利情况
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,用于衡量公司将其报告利润转化为自由现金流(FCF)的关键比率是从现金流量中计算的应计率。简单点来说,这个比率从净利润中减去自由现金流,然后将这个数字除以公司在那段时间内的平均营业资产。从现金流来看,你可以把它看作是“非FCF利润率”。
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 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. 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,因为它表明公司带来的自由现金流比利润预示的要多。尽管应计比率高于零并不令人担忧,但我们认为值得注意的是,当公司应计比率相对较高时。引用Lewellen和Resutek 2014年的一篇论文:“应计较高的公司未来可能不那么有盈利能力”。
RENHENG Enterprise Holdings has an accrual ratio of 0.27 for the year to June 2024. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing. In fact, it had free cash flow of HK$8.5m in the last year, which was a lot less than its statutory profit of HK$20.3m. We note, however, that RENHENG Enterprise Holdings grew its free cash flow over the last year. The good news for shareholders is that RENHENG Enterprise Holdings' 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.
RENHENG Enterprise Holdings在截至2024年6月的一年中,准备比率为0.27。因此,我们知道其自由现金流明显低于其法定利润,这并不是一件好事。实际上,该公司在过去一年中的自由现金流为850万港元,远低于其2030万港元的法定利润。然而,我们注意到,RENHENG Enterprise Holdings在过去一年中增加了其自由现金流。对股东来说的好消息是,RENHENG Enterprise Holdings的准备比率去年要好得多,因此今年糟糕的数据可能只是利润和自由现金流之间短期不匹配的情况。如果情况确实如此,股东应该期待本年度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 RENHENG Enterprise Holdings.
备注:我们始终建议投资者检查资产负债表的实力。 点击这里查看我们对RENHENG Enterprise Holdings资产负债表分析。
Our Take On RENHENG Enterprise Holdings' Profit Performance
我们对任恒企业控股的利润表现进行分析
RENHENG Enterprise Holdings' accrual ratio for the last twelve months signifies cash conversion is less than ideal, which is a negative when it comes to our view of its earnings. Therefore, it seems possible to us that RENHENG Enterprise Holdings' true underlying earnings power is actually less than its statutory profit. But the happy news is that, while acknowledging we have to look beyond the statutory numbers, those numbers are still improving, with EPS growing at a very high rate over 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. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. When we did our research, we found 2 warning signs for RENHENG Enterprise Holdings (1 is concerning!) that we believe deserve your full attention.
任恒企业控股过去十二个月的应计比率表明,现金转换不理想,这在我们对其盈利的看法上是一个不利因素。因此,我们认为任恒企业控股的真实基本盈利能力实际上低于其法定利润。但令人欣慰的消息是,虽然我们承认必须超越法定数字,但这些数字仍在改善,EPS在过去一年增长速度非常快。最终,如果您希望正确了解该公司,就必须考虑更多因素。因此,如果您想深入了解这支股票,就要考虑它面临的任何风险。在我们进行研究时,我们发现了任恒企业控股的2个警示信号(其中1个令人担忧!),我们认为这值得您的注意。
This note has only looked at a single factor that sheds light on the nature of RENHENG Enterprise Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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.
这篇说明仅观察了揭示任恒企业控股利润本质的一个因素。但如果您能将注意力集中在细枝末节上,总会有更多发现。例如,许多人认为高净资产回报率是有利的商业经济迹象,而其他人则喜欢“跟着资金走”,寻找内部人员正在购买的股票。虽然这可能需要您进行一些研究,但您可能会发现这些拥有高净资产回报率的公司收集或者这些具有重要内部持股的股票清单是有用的。
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