We Think That There Are More Issues For Changzhou Shichuang EnergyLtd (SHSE:688429) Than Just Sluggish Earnings
We Think That There Are More Issues For Changzhou Shichuang EnergyLtd (SHSE:688429) Than Just Sluggish Earnings
The subdued market reaction suggests that Changzhou Shichuang Energy Co.,Ltd.'s (SHSE:688429) recent earnings didn't contain any surprises. However, we believe that investors should be aware of some underlying factors which may be of concern.
疲軟的市場反應表明,常州世創能源有限公司, Ltd. 's(上海證券交易所代碼:688429)最近的業績沒有任何意外。但是,我們認爲,投資者應注意一些可能令人擔憂的潛在因素。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240507/0-4f6718d1bd31ab03d80d88895d1923ef-0-17d085e763ad35ef55ce7c741c40e2fe.png/big)
A Closer Look At Changzhou Shichuang EnergyLtd's Earnings
仔細看看常州世創能源有限公司的收益
As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. 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. The ratio shows us how much a company's profit exceeds its FCF.
正如財務愛好者已經知道的那樣,現金流的應計比率是評估公司自由現金流(FCF)與其利潤相匹配程度的關鍵指標。應計比率從給定時期的利潤中減去FCF,然後將結果除以公司在該時期內的平均運營資產。該比率向我們顯示了公司的利潤超過其FCF的程度。
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. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
因此,負應計比率對公司來說是正數,而正應計比率是負數。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。值得注意的是,有一些學術證據表明,總的來說,高應計率對短期利潤來說是個壞兆頭。
For the year to March 2024, Changzhou Shichuang EnergyLtd had an accrual ratio of 0.44. 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. In the last twelve months it actually had negative free cash flow, with an outflow of CN¥442m despite its profit of CN¥54.2m, mentioned above. It's worth noting that Changzhou Shichuang EnergyLtd generated positive FCF of CN¥405m a year ago, so at least they've done it in the past. The good news for shareholders is that Changzhou Shichuang EnergyLtd's accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. As a result, some shareholders may be looking for stronger cash conversion in the current year.
在截至2024年3月的一年中,常州世創能源有限公司的應計比率爲0.44。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。在過去的十二個月裏,它實際上有 負面的 自由現金流,儘管利潤爲5.42億元人民幣,但流出量仍爲4.42億元人民幣,如上所述。值得注意的是,常州世創能源有限公司一年前創造了4.05億元人民幣的正FCF,因此至少他們過去曾這樣做過。對股東來說,好消息是,常州世創能源有限公司去年的應計比率要好得多,因此今年的糟糕數據可能只是利潤與FCF之間短期不匹配的情況。因此,一些股東可能希望在本年度實現更強的現金轉換。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Changzhou Shichuang EnergyLtd.
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常州世創能源有限公司的資產負債表分析。
Our Take On Changzhou Shichuang EnergyLtd's Profit Performance
我們對常州世創能源有限公司盈利表現的看法
As we have made quite clear, we're a bit worried that Changzhou Shichuang EnergyLtd didn't back up the last year's profit with free cashflow. As a result, we think it may well be the case that Changzhou Shichuang EnergyLtd's underlying earnings power is lower than its statutory profit. Sadly, its EPS was down over the last 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. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. To that end, you should learn about the 2 warning signs we've spotted with Changzhou Shichuang EnergyLtd (including 1 which makes us a bit uncomfortable).
正如我們已經明確指出的那樣,我們有點擔心常州世創能源有限公司沒有用自由現金流來支持去年的利潤。因此,我們認爲常州世創能源有限公司的潛在盈利能力很可能低於其法定利潤。不幸的是,在過去的十二個月中,其每股收益有所下降。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。因此,如果你想更深入地研究這隻股票,那麼考慮它面臨的任何風險至關重要。爲此,你應該了解我們在常州世創能源有限公司發現的兩個警告標誌(包括一個讓我們有點不舒服的警示標誌)。
This note has only looked at a single factor that sheds light on the nature of Changzhou Shichuang EnergyLtd'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. 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.
這份報告只研究了揭示常州世創能源有限公司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。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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。