Zhejiang Hengwei Battery's (SZSE:301222) Profits May Not Reveal Underlying Issues
Zhejiang Hengwei Battery's (SZSE:301222) Profits May Not Reveal Underlying Issues
The market for Zhejiang Hengwei Battery Co., Ltd.'s (SZSE:301222) stock was strong after it released a healthy earnings report last week. While the profit numbers were good, our analysis has found some concerning factors that shareholders should be aware of.
浙江恒威電池有限公司的市場s(深圳證券交易所股票代碼:301222)在上週發佈了健康的收益報告後,該股表現強勁。儘管利潤數字不錯,但我們的分析發現了一些股東應該注意的令人擔憂的因素。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240505/0-144c8a6b26794459e4a80f5fc26f5410-0-afa38b32fc8506e011c84fc9263e8361.png/big)
A Closer Look At Zhejiang Hengwei Battery's Earnings
仔細看看浙江恒威電池的收益
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. The ratio shows us how much a company's profit exceeds its FCF.
用於衡量公司將其利潤轉換爲自由現金流(FCF)的情況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,然後將該數字除以該時期公司的平均運營資產。該比率向我們顯示了公司的利潤超過其FCF的程度。
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. 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. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
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,但是如果應計比率爲正,則被認爲是一件壞事。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。那是因爲一些學術研究表明,高應計比率往往會導致利潤下降或利潤增長放緩。
Zhejiang Hengwei Battery has an accrual ratio of 0.50 for the year to March 2024. As a general rule, that bodes poorly for future profitability. To wit, the company did not generate one whit of free cashflow in that time. Over the last year it actually had negative free cash flow of CN¥23m, in contrast to the aforementioned profit of CN¥130.4m. It's worth noting that Zhejiang Hengwei Battery generated positive FCF of CN¥109m a year ago, so at least they've done it in the past.
截至2024年3月的一年中,浙江恒威電池的應計比率爲0.50。通常,這對未來的盈利能力來說是個壞兆頭。換句話說,該公司在那段時間內沒有產生一點自由現金流。在過去的一年裏,它實際上有 負面的 自由現金流爲2300萬元人民幣,而上述利潤爲1.304億元人民幣。值得注意的是,浙江恒威電池一年前創造了1.09億元人民幣的正FCF,因此至少他們過去曾這樣做過。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Zhejiang Hengwei Battery.
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浙江恒威電池的資產負債表分析。
Our Take On Zhejiang Hengwei Battery's Profit Performance
我們對浙江恒威電池盈利表現的看法
As we discussed above, we think Zhejiang Hengwei Battery's earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that Zhejiang Hengwei Battery's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. And we are pleased to note that EPS is at least heading in the right direction in the alst twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you'd like to know more about Zhejiang Hengwei Battery as a business, it's important to be aware of any risks it's facing. When we did our research, we found 2 warning signs for Zhejiang Hengwei Battery (1 makes us a bit uncomfortable!) that we believe deserve your full attention.
正如我們上面討論的那樣,我們認爲浙江恒威電池的收益沒有得到自由現金流的支持,這可能會讓一些投資者感到擔憂。出於這個原因,我們認爲浙江恒威電池的法定利潤可能不利於其潛在盈利能力,並可能給投資者留下過於積極的印象。我們高興地注意到,在過去的十二個月中,每股收益至少朝着正確的方向發展。當然,我們只是在分析其收益時才浮出水面;人們還可以考慮利潤率、預測增長和投資回報率等因素。如果您想進一步了解浙江恒威電池作爲一家企業,請務必了解其面臨的任何風險。當我們進行研究時,我們發現了浙江恒威電池的2個警告標誌(1個讓我們有點不舒服!)我們認爲值得你全神貫注。
This note has only looked at a single factor that sheds light on the nature of Zhejiang Hengwei Battery's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. 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.
本報告僅研究了揭示浙江恒威電池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。有些人認爲高股本回報率是優質業務的好兆頭。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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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。