BHCC Holding's (HKG:1552) Anemic Earnings Might Be Worse Than You Think
BHCC Holding's (HKG:1552) Anemic Earnings Might Be Worse Than You Think
The subdued market reaction suggests that BHCC Holding Limited's (HKG:1552) recent earnings didn't contain any surprises. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
市場反應疲軟,表明BHCC控股有限公司(HKG: 1552)最近的收益沒有任何意外。我們的分析表明,除了疲軟的利潤數字外,投資者還應意識到這些數字中的其他一些潛在弱點。
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A Closer Look At BHCC Holding's Earnings
仔細研究BHCC Holding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. This ratio tells us how much of a company's profit is not backed by free cashflow.
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。這個比率告訴我們,一家公司的利潤中有多少沒有自由現金流的支持。
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. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
這意味着負應計比率是一件好事,因爲它表明該公司帶來的自由現金流超出了其利潤所暗示的範圍。儘管應計比率爲正(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,因爲它表明紙質利潤與現金流不匹配。值得注意的是,有一些學術證據表明,總的來說,高應計比率對短期利潤來說是個壞兆頭。
Over the twelve months to June 2024, BHCC Holding recorded an accrual ratio of 1.09. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. Even though it reported a profit of S$2.93m, a look at free cash flow indicates it actually burnt through S$52m in the last year. It's worth noting that BHCC Holding generated positive FCF of S$14m a year ago, so at least they've done it in the past. The good news for shareholders is that BHCC Holding'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. Shareholders should look for improved cashflow relative to profit in the current year, if that is indeed the case.
在截至2024年6月的十二個月中,BHCC Holding的應計比率爲1.09。通常,這對未來的盈利能力來說是個壞兆頭。事實上,在此期間,該公司沒有產生任何自由現金流。儘管該公司公佈了293萬新元的利潤,但從自由現金流來看,它實際上在去年消耗了5200萬新元。值得注意的是,BHCC Holding一年前創造了1400萬新元的正FCF,因此至少他們過去曾這樣做過。對股東來說,好消息是,BHCC Holding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之間短期不匹配的例子。如果確實如此,股東應尋求在本年度的現金流相對於利潤的改善。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of BHCC Holding.
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BHCC Holding的資產負債表分析。
Our Take On BHCC Holding's Profit Performance
我們對BHCC Holding盈利表現的看法
As we discussed above, we think BHCC Holding's earnings were not supported by free cash flow, which might concern some investors. As a result, we think it may well be the case that BHCC Holding's underlying earnings power is lower 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. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To help with this, we've discovered 4 warning signs (2 are significant!) that you ought to be aware of before buying any shares in BHCC Holding.
正如我們上面討論的那樣,我們認爲BHCC Holding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。因此,我們認爲BHCC Holding的基礎盈利能力很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。請記住,在分析股票時,值得注意所涉及的風險。爲了幫助解決這個問題,我們發現了 4 個警告信號(2 個很重要!)在購買BHCC Holding的任何股票之前,你應該注意這一點。
This note has only looked at a single factor that sheds light on the nature of BHCC Holding'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. 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.
本報告僅研究了揭示BHCC Holding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。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,或者這份擁有大量內幕持股的股票清單很有用。
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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。