Statutory Profit Doesn't Reflect How Good Shun Wo Group Holdings' (HKG:1591) Earnings Are
Statutory Profit Doesn't Reflect How Good Shun Wo Group Holdings' (HKG:1591) Earnings Are
The subdued stock price reaction suggests that Shun Wo Group Holdings Limited's (HKG:1591) strong earnings didn't offer any surprises. We think that investors have missed some encouraging factors underlying the profit figures.
淡定的股價反應表明汛和集團控股有限公司(HKG:1591)的強勁收益沒有帶來任何意外。我們認爲,投資者忽略了獲利數據背後的一些令人鼓舞的因素。
Examining Cashflow Against Shun Wo Group Holdings' Earnings
對比汛和集團控股的現金流與收益
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. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
正如財務迷們已經知道的那樣,從現金流量的應計比率是一個判斷公司自由現金流(FCF)與盈利匹配情況的關鍵指標。應計比率是將某一段時間內的FCF從利潤中減去,然後將結果除以公司在那段時間內的平均營運資產。你可以將從現金流量中計算的應計比率看作「非FCF盈利比例」。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. 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".
這意味着負的應計比率是一件好事,因爲它顯示公司帶來的自由現金流比其利潤所暗示的要多。雖然擁有正的應計比率不是問題,表明一定水平的非現金利潤,但高的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 2014年的一篇論文「具有更高應計的公司趨向於在未來盈利更少」。
For the year to March 2024, Shun Wo Group Holdings had an accrual ratio of -0.12. That indicates that its free cash flow was a fair bit more than its statutory profit. Indeed, in the last twelve months it reported free cash flow of HK$46m, well over the HK$39.5m it reported in profit. Shun Wo Group Holdings shareholders are no doubt pleased that free cash flow improved over the last twelve months.
截至2024年3月,汛和集團控股的計提比率爲-0.12。這表明其自由現金流比其法定利潤要高得多。事實上,在過去的十二個月中,其自由現金流爲4600萬港幣,遠高於3950萬港幣的利潤。汛和集團控股的股東們毫無疑問會對過去十二個月的自由現金流改善感到高興。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Shun Wo Group Holdings.
注意:我們始終建議投資者檢查資產負債表的實力。單擊此處,以查看我們對汛和集團控股的資產負債表分析。
Our Take On Shun Wo Group Holdings' Profit Performance
我們對汛和集團控股的盈利表現的看法
Shun Wo Group Holdings' accrual ratio is solid, and indicates strong free cash flow, as we discussed, above. Because of this, we think Shun Wo Group Holdings' earnings potential is at least as good as it seems, and maybe even better! And on top of that, its earnings per share have grown at an extremely impressive rate over the last year. 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. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. In terms of investment risks, we've identified 1 warning sign with Shun Wo Group Holdings, and understanding it should be part of your investment process.
正如我們上面討論的那樣,汛和集團控股的計提比率很好,表明其自由現金流強勁。因此,我們認爲汛和集團控股的盈利潛力至少與表面相當,甚至可能更好!此外,其每股盈利在過去一年中增長了非常驚人的速度。當然,當涉及到分析其盈利時,我們僅是觸及了表面;其他因素還包括邊際、預測增長和投資回報等。基於此,除非我們深入了解風險,否則我們不會考慮投資股票。就投資風險而言,我們已經發現了汛和集團控股的1個警告信號,並且理解它應成爲您投資流程的一部分。
This note has only looked at a single factor that sheds light on the nature of Shun Wo Group Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. 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 with significant insider holdings to be useful.
本筆記錄僅考慮了揭示汛和集團控股盈利性質的單個因素。但是,如果您能集中注意力,總是有更多東西可以發現的。例如,許多人認爲高淨資產回報率是良好的商業經濟的指示,而其他人則喜歡「跟蹤資金」,尋找內部人員正在購買的股票。儘管您可能需要進行一些研究,但您可能會發現此免費公司收集高淨資產回報率的收藏,或此具有重要內部持股的股票清單很有用。
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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。