Earnings Troubles May Signal Larger Issues for Guizhou RedStar DevelopingLtd (SHSE:600367) Shareholders
Earnings Troubles May Signal Larger Issues for Guizhou RedStar DevelopingLtd (SHSE:600367) Shareholders
The market rallied behind Guizhou RedStar Developing Co.,Ltd.'s (SHSE:600367) stock, leading do a rise in the share price after its recent weak earnings report. While shareholders may be willing to overlook soft profit numbers, we believe that they should also be taking into account some other factors which may be cause for concern.
市場上漲,落後於貴州紅星發展有限公司。, Ltd. 's(上海證券交易所代碼:600367)股票在最近公佈疲軟的業績後股價上漲。儘管股東可能願意忽視疲軟的利潤數字,但我們認爲他們還應考慮其他一些可能令人擔憂的因素。
One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. In fact, Guizhou RedStar DevelopingLtd increased the number of shares on issue by 16% over the last twelve months by issuing new shares. As a result, its net income is now split between a greater number of shares. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. You can see a chart of Guizhou RedStar DevelopingLtd's EPS by clicking here.
評估收益質量的一個重要方面是研究一家公司在多大程度上稀釋了股東。實際上,貴州紅星發展股份有限公司通過發行新股,在過去十二個月中將已發行股票數量增加了16%。結果,其淨收入現在分成了更多的股票。在不注意每股收益的情況下談論淨收益,就是被大數字分散注意力,而忽略與之交談的較小數字 每股 價值。您可以點擊此處查看貴州紅星發展有限公司的每股收益圖表。
How Is Dilution Impacting Guizhou RedStar DevelopingLtd's Earnings Per Share (EPS)?
稀釋如何影響貴州紅星發展股份有限公司的每股收益(EPS)?
Unfortunately, Guizhou RedStar DevelopingLtd's profit is down 50% per year over three years. Even looking at the last year, profit was still down 67%. Like a sack of potatoes thrown from a delivery truck, EPS fell harder, down 66% in the same period. Therefore, the dilution is having a noteworthy influence on shareholder returns.
不幸的是,貴州紅星發展有限公司的利潤在三年內每年下降50%。即使從去年來看,利潤仍下降了67%。就像從送貨卡車上扔出一袋土豆一樣,每股收益的下降幅度更大,同期下降了66%。因此,稀釋對股東回報產生了顯著影響。
If Guizhou RedStar DevelopingLtd's EPS can grow over time then that drastically improves the chances of the share price moving in the same direction. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit.
如果貴州紅星發展有限公司的每股收益能夠隨着時間的推移而增長,那麼這將大大增加股價朝同一方向上漲的機會。但另一方面,得知利潤(但不是每股收益)在改善,我們就不那麼興奮了。對於普通零售股東來說,每股收益是檢查您假設的公司利潤 “份額” 的好方法。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Guizhou RedStar DevelopingLtd.
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貴州紅星發展有限公司的資產負債表分析
How Do Unusual Items Influence Profit?
不尋常的物品如何影響利潤?
Finally, we should also consider the fact that unusual items boosted Guizhou RedStar DevelopingLtd's net profit by CN¥20m over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is).
最後,我們還應該考慮這樣一個事實,即不尋常的項目使貴州紅星發展有限公司的淨利潤比去年增加了2000萬元人民幣。雖然獲得更高的利潤總是件好事,但來自不尋常物品的巨額捐款有時會抑制我們的熱情。當我們分析全球絕大多數上市公司時,我們發現重大不尋常的事項往往不會重演。而且,畢竟,這正是會計術語的含義。假設這些不尋常的項目在本年度不會再次出現,因此我們預計明年的利潤將疲軟(也就是說,在業務沒有增長的情況下)。
Our Take On Guizhou RedStar DevelopingLtd's Profit Performance
我們對貴州紅星發展有限公司盈利表現的看法
In its last report Guizhou RedStar DevelopingLtd benefitted from unusual items which boosted its profit, which could make the profit seem better than it really is on a sustainable basis. On top of that, the dilution means that its earnings per share performance is worse than its profit performance. For the reasons mentioned above, we think that a perfunctory glance at Guizhou RedStar DevelopingLtd's statutory profits might make it look better than it really is on an underlying level. So while earnings quality is important, it's equally important to consider the risks facing Guizhou RedStar DevelopingLtd at this point in time. You'd be interested to know, that we found 4 warning signs for Guizhou RedStar DevelopingLtd and you'll want to know about these.
在上一份報告中,貴州紅星發展有限公司受益於不尋常的項目,這些項目提高了利潤,在可持續的基礎上,這可能會使利潤看起來好於實際利潤。最重要的是,稀釋意味着其每股收益表現不如其盈利表現。出於上述原因,我們認爲,敷衍地看一眼貴州紅星開發有限公司的法定利潤可能會使其看起來比實際水平要好。因此,儘管收益質量很重要,但考慮貴州紅星發展有限公司目前面臨的風險同樣重要。你可能會有興趣知道,我們發現了貴州紅星發展有限公司的4個警告標誌,你會想知道的。
Our examination of Guizhou RedStar DevelopingLtd has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. 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.
我們對貴州紅星發展有限公司的審查側重於某些可能使其收益看起來好於實際的因素。而且,在此基礎上,我們有些懷疑。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。
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