Weak Statutory Earnings May Not Tell The Whole Story For Sino-High (China) (SZSE:301076)
Weak Statutory Earnings May Not Tell The Whole Story For Sino-High (China) (SZSE:301076)
Last week's earnings announcement from Sino-High (China) Co., Ltd. (SZSE:301076) was disappointing to investors, with a sluggish profit figure. Our analysis has found some reasons to be concerned, beyond the weak headline numbers.
上週中華(中國)有限公司(深圳證券交易所股票代碼:301076)的業績令投資者失望,盈利數字低迷。我們的分析發現,除了疲軟的標題數字外,還有一些令人擔憂的理由。
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Zooming In On Sino-High (China)'s Earnings
放大Sino-High(中國)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. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
用於衡量公司將其利潤轉化爲自由現金流(FCF)的效果的一個關鍵財務比率是應計比率。簡而言之,該比率從淨利潤中減去FCF,然後將該數字除以公司在此期間的平均運營資產。你可以將現金流的應計比率視爲 “非FCF利潤率”。
Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. 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. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
因此,當公司的應計比率爲負時,這實際上被認爲是一件好事,但如果其應計比率爲正,則是一件壞事。雖然正應計比率表明非現金利潤達到一定水平不是問題,但高應計比率可以說是一件壞事,因爲它表明紙面利潤與現金流不匹配。引用Lewellen和Resutek在2014年發表的一篇論文,“應計額較高的公司將來的利潤往往會降低”。
Sino-High (China) has an accrual ratio of 0.31 for the year to December 2023. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, raising questions about how useful that profit figure really is. Even though it reported a profit of CN¥93.3m, a look at free cash flow indicates it actually burnt through CN¥48m in the last year. It's worth noting that Sino-High (China) generated positive FCF of CN¥39m a year ago, so at least they've done it in the past.
中高(中國)截至2023年12月的一年度的應計比率爲0.31。因此,我們知道它的自由現金流大大低於其法定利潤,這引發了人們對該利潤數字到底有多有用的質疑。儘管該公司報告的利潤爲9,330萬元人民幣,但從自由現金流來看,它實際上在去年消耗了4,800萬元人民幣。值得注意的是,Sino-High(中國)一年前創造了3900萬元人民幣的正FCF,因此至少他們過去曾這樣做過。
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
這可能會讓你想知道分析師對未來盈利能力的預測。幸運的是,您可以單擊此處查看根據他們的估計描繪未來盈利能力的交互式圖表。
Our Take On Sino-High (China)'s Profit Performance
我們對Sino-High(中國)盈利表現的看法
Sino-High (China)'s 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 Sino-High (China)'s true underlying earnings power is actually less 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. If you'd like to know more about Sino-High (China) as a business, it's important to be aware of any risks it's facing. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Sino-High (China).
Sino-High(中國)過去十二個月的應計比率表明現金轉換不理想,從我們對收益的看法來看,這是負數。因此,在我們看來,Sino-High(中國)的真正潛在盈利能力實際上可能低於其法定利潤。另一個壞消息是,其每股收益在去年有所下降。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。如果您想進一步了解Sino-High(中國)作爲一家企業,請務必了解其面臨的任何風險。例如,我們發現了兩個警告信號,爲了更好地了解Sino-High(中國),你應該仔細檢查一下。
This note has only looked at a single factor that sheds light on the nature of Sino-High (China)'s profit. But there are plenty of other ways to inform your opinion of a company. 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.
這份報告只研究了揭示中高(中國)利潤性質的單一因素。但是,還有很多其他方法可以讓你對公司的看法。例如,許多人認爲高股本回報率是有利的商業經濟的標誌,而另一些人則喜歡 “關注資金”,尋找內部人士正在買入的股票。因此,你可能希望看到這份免費收藏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。
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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。