Some Investors May Be Willing To Look Past Infinity Development Holdings' (HKG:640) Soft Earnings
Some Investors May Be Willing To Look Past Infinity Development Holdings' (HKG:640) Soft Earnings
The market for Infinity Development Holdings Company Limited's (HKG:640) shares didn't move much after it posted weak earnings recently. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.
無限發展控股有限公司(HKG: 640)在最近公佈疲軟的收益後,其股票市場沒有太大波動。我們認爲,較疲軟的標題數字可能會被一些積極的潛在因素所抵消。
View our latest analysis for Infinity Development Holdings
查看我們對無限發展控股公司的最新分析
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240127/0-73f5517b3a45d682a5f85aa41f14135f-0-45a062738c6db12f571b56de2fce3775.png/big)
A Closer Look At Infinity Development Holdings' Earnings
仔細研究無限發展控股的收益
Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
許多投資者尚未聽說過現金流的應計比率,但它實際上是衡量公司在給定時期內自由現金流(FCF)在多大程度上支持利潤的有用指標。應計比率從給定時期的利潤中減去FCF,然後將結果除以該時間內公司的平均運營資產。你可以將現金流的應計比率視爲 “非FCF利潤率”。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
因此,負應計比率對公司來說是正數,正應計比率是負數。這並不意味着我們應該擔心應計比率爲正,但值得注意的是,應計比率相當高的地方。引用Lewellen和Resutek在2014年發表的一篇論文,“應計額較高的公司未來的利潤往往較低”。
Infinity Development Holdings has an accrual ratio of -0.44 for the year to September 2023. Therefore, its statutory earnings were very significantly less than its free cashflow. In fact, it had free cash flow of HK$205m in the last year, which was a lot more than its statutory profit of HK$67.1m. Notably, Infinity Development Holdings had negative free cash flow last year, so the HK$205m it produced this year was a welcome improvement.
截至2023年9月的一年中,Infinity Development Holdings的應計比率爲-0.44。因此,其法定收入大大低於其自由現金流。實際上,它去年的自由現金流爲2.05億港元,遠遠超過其6,710萬港元的法定利潤。值得注意的是,Infinity Development Holdings去年的自由現金流爲負,因此其今年的2.05億港元是一個可喜的改善。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Infinity Development Holdings.
注意:我們始終建議投資者檢查資產負債表的實力。點擊此處查看我們對Infinity Development Holdings的資產負債表分析。
Our Take On Infinity Development Holdings' Profit Performance
我們對無限發展控股公司盈利表現的看法
As we discussed above, Infinity Development Holdings' accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Based on this observation, we consider it possible that Infinity Development Holdings' statutory profit actually understates its earnings potential! And on top of that, its earnings per share have grown at 22% per year over the last three years. 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. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - Infinity Development Holdings has 2 warning signs we think you should be aware of.
正如我們上面討論的那樣,Infinity Development Holdings的應計比率表明利潤向自由現金流的強勁轉換,這對公司來說是一個積極的利潤。基於這一觀察,我們認爲Infinity Development Holdings的法定利潤實際上可能低估了其盈利潛力!最重要的是,在過去三年中,其每股收益以每年22%的速度增長。歸根結底,如果你想正確地了解公司,必須考慮的不僅僅是上述因素。考慮到這一點,除非我們對風險有透徹的了解,否則我們不會考慮投資股票。例如,Infinity Development Holdings有兩個警告信號,我們認爲你應該注意。
This note has only looked at a single factor that sheds light on the nature of Infinity Development Holdings' profit. 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. 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 that insiders are buying to be useful.
本報告僅研究了揭示Infinity Development Holdings利潤性質的單一因素。但是,如果你能夠將注意力集中在細節上,總會有更多的事情需要發現。有些人認爲高股本回報率是優質業務的好兆頭。雖然可能需要你進行一些研究,但你可能會發現這份免費收集的擁有高股本回報率的公司,或者這份內部人士正在購買的股票清單很有用。
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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的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。