Tianjin Yiyi Hygiene Products Co.,Ltd's (SZSE:001206) healthy profit numbers didn't contain any surprises for investors. We think this is due to investors looking beyond the statutory profits and being concerned with what they see.

The Impact Of Unusual Items On Profit

For anyone who wants to understand Tianjin Yiyi Hygiene ProductsLtd's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from CN¥19m worth of unusual items. 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. Which is hardly surprising, given the name. 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).

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Tianjin Yiyi Hygiene ProductsLtd's Profit Performance

Arguably, Tianjin Yiyi Hygiene ProductsLtd's statutory earnings have been distorted by unusual items boosting profit. Therefore, it seems possible to us that Tianjin Yiyi Hygiene ProductsLtd's true underlying earnings power is actually less than its statutory profit. But at least holders can take some solace from the 43% EPS growth in the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into Tianjin Yiyi Hygiene ProductsLtd, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Tianjin Yiyi Hygiene ProductsLtd and we think they deserve your attention.

Today we've zoomed in on a single data point to better understand the nature of Tianjin Yiyi Hygiene ProductsLtd's 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. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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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.