Wei Yuan Holdings Limited's (HKG:1343) recent weak earnings report didn't cause a big stock movement. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
See our latest analysis for Wei Yuan Holdings
SEHK:1343 Earnings and Revenue History October 3rd 2022
The Impact Of Unusual Items On Profit
For anyone who wants to understand Wei Yuan Holdings' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from S$2.4m worth of unusual items. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. Wei Yuan Holdings had a rather significant contribution from unusual items relative to its profit to June 2022. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Wei Yuan Holdings.
Our Take On Wei Yuan Holdings' Profit Performance
As we discussed above, we think the significant positive unusual item makes Wei Yuan Holdings' earnings a poor guide to its underlying profitability. For this reason, we think that Wei Yuan Holdings' statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. Sadly, its EPS was down over the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing Wei Yuan Holdings at this point in time. When we did our research, we found 4 warning signs for Wei Yuan Holdings (2 can't be ignored!) that we believe deserve your full attention.
This note has only looked at a single factor that sheds light on the nature of Wei Yuan 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. 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.
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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.
偉源控股有限公司 (HKG: 1343) 近期疲軟的盈利報告並沒有引起大股市波動。我們的分析表明,除了軟利潤數字外,投資者還應注意這些數字中的其他潛在弱點。
查看我們有關偉源控股的最新分析
聯交所代碼:1343 年十月三日收益及收入歷史記錄
不尋常的項目對利潤的影響
對於任何想了解偉源控股的利潤超出法定數字的人士,請務必注意,在過去十二個月內,法定利潤從價值 2.4 億新加坡元的不尋常物品中獲得。我們不能否認,更高的利潤通常會讓我們樂觀,但如果利潤是可持續的,我們更願意這樣做。我們在全球大多數上市公司上市公司都有數字,而不尋常的項目本質上一次性是很常見的。這就是你所期望的,因為這些提升被描述為「不尋常」。偉源控股從不尋常項目相對於其利潤到 2022 年 6 月的貢獻相當顯著。因此,我們可以推測,這些不尋常的項目正在使其法定利潤比其他方面明顯強大。
注意: 我們始終建議投資者檢查資產負債表強度。點擊這裡被帶到我們對偉源控股的資產負債表分析。
我們對偉元控股的利潤表現
正如我們上面討論的那樣,我們認為偉元控股的重要不尋常項目使得偉元控股的盈利能力成為其潛在盈利能力的差指南。出於這個原因,我們認為偉源控股的法定利潤可能是其基礎盈利能力的不良指南,可能會給投資者帶來公司過於積極的印象。可悲的是,在過去的十二個月裡,它的每股收益下降了。本文的目標是評估我們可以如何依靠法定收益來反映公司的潛力,但還有很多要考慮的事情。因此,儘管收益質量很重要,但同樣重要的是要考慮偉源控股在此時所面臨的風險。當我們做我們的研究,我們發現 威源控股的 4 個警告標誌 (2 不能忽視!)我們相信值得您全面關注。
本說明僅研究了一個單一因素,該因素揭示了偉源控股的利潤性質。但總是有更多的發現,如果你有能力把你的思想集中在分鐘.例如,許多人認為股權回報率高,作為有利的商業經濟學的指示,而其他人則喜歡「跟隨錢」並搜索內部人士正在購買的股票。所以大家不妨看看這個 自由 集合擁有高股權回報率的公司, 或這個名單的股票,內部人士正在購買.
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這篇文章由簡單牆聖是一般性質. 我們僅使用公正的方法,根據歷史數據和分析師預測提供評論,我們的文章並不打算作為財務建議。 它並不構成購買或出售任何股票的建議,也不會考慮您的目標或您的財務狀況。我們的目標是為您帶來由基本數據驅動的長期集中分析。請注意,我們的分析可能不會考慮最新的價格敏感公司公告或定性材料。簡易華街在提及的任何股票中都沒有倉位。