Wenzhou Hongfeng Electrical Alloy's (SZSE:300283) Problems Go Beyond Poor Profit
Wenzhou Hongfeng Electrical Alloy's (SZSE:300283) Problems Go Beyond Poor Profit
Wenzhou Hongfeng Electrical Alloy Co., Ltd.'s (SZSE:300283) lackluster earnings announcement last week disappointed investors. We think there is more to the story than simply soft profit numbers. Our analysis shows that there are some other factors of concern.
溫州宏豐電合金有限公司's(深圳證券交易所股票代碼:300283)上週公佈的乏善可陳的業績令投資者失望。我們認爲,這個故事不僅僅是軟利潤數字。我們的分析表明,還有其他一些令人擔憂的因素。
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The Power Of Non-Operating Revenue
非營業收入的力量
Companies will classify their revenue streams as either operating revenue or other revenue. Where possible, we prefer rely on operating revenue to get a better understanding of how the business is functioning. However, we note that when non-operating revenue increases suddenly, it will sometimes generate an unsustainable boost to profit. Notably, Wenzhou Hongfeng Electrical Alloy had a significant increase in non-operating revenue over the last year. Indeed, its non-operating revenue rose from CN¥162.4m last year to CN¥595.5m this year. If that non-operating revenue fails to manifest in the current year, then there's a real risk the bottom line profit result will be impacted negatively. In order to better understand a company's profit result, it can sometimes help to consider whether the result would be very different without a sudden increase in non-operating revenue.
各公司將把其收入來源歸類爲營業收入或其他收入。在可能的情況下,我們更願意依靠營業收入來更好地了解業務的運作方式。但是,我們注意到,當非營業收入突然增加時,有時會產生不可持續的利潤增長。值得注意的是,溫州宏豐電合金的非營業收入比去年大幅增加。事實上,其營業外收入從去年的1.624億元人民幣增加到今年的5.955億元人民幣。如果非營業收入未能在本年度顯現,那麼利潤業績確實有可能受到負面影響。爲了更好地了解公司的利潤結果,有時可以考慮在不突然增加營業外收入的情況下結果是否會有很大不同。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Wenzhou Hongfeng Electrical Alloy.
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溫州宏豐電子合金的資產負債表分析。
How Do Unusual Items Influence Profit?
不尋常的物品如何影響利潤?
Alongside that spike in non-operating revenue, it's also important to note that Wenzhou Hongfeng Electrical Alloy'sprofit was boosted by unusual items worth CN¥19m in the last twelve months. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And, after all, that's exactly what the accounting terminology implies. Wenzhou Hongfeng Electrical Alloy had a rather significant contribution from unusual items relative to its profit to December 2023. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.
除了營業外收入的激增外,還需要注意的是,在過去的十二個月中,價值1900萬元人民幣的不尋常項目提振了溫州宏豐電氣合金的利潤。雖然我們希望看到利潤增加,但當不尋常的物品做出重大貢獻時,我們往往會更加謹慎一些。當我們計算數千家上市公司的數字時,我們發現,特定年份中不尋常的項目所帶來的提振通常不會在第二年重演。而且,畢竟,這正是會計術語的含義。截至2023年12月,溫州宏豐電合金從不尋常的項目中獲得了相當大的利潤。在其他條件相同的情況下,這可能會使法定利潤成爲衡量潛在盈利能力的不良指導。
Our Take On Wenzhou Hongfeng Electrical Alloy's Profit Performance
我們對溫州宏豐電合金盈利表現的看法
In the last year Wenzhou Hongfeng Electrical Alloy's non-operating revenue really gave it a boost, but not in a way that is necessarily going to be sustained. And on top of that, it also saw an unusual item boost its profit, suggesting that next year might see a lower profit number, if these events are not repeated and everything else is equal. On reflection, the above-mentioned factors give us the strong impression that Wenzhou Hongfeng Electrical Alloy'sunderlying earnings power is not as good as it might seem, based on the statutory profit numbers. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 4 warning signs for Wenzhou Hongfeng Electrical Alloy (of which 1 makes us a bit uncomfortable!) you should know about.
去年,溫州宏豐電工合金的營業外收入確實爲其帶來了提振,但其表現不一定能持續下去。最重要的是,它還看到一個不尋常的項目提高了利潤,這表明如果這些事件不重演,其他一切都一樣,明年的利潤數字可能會降低。經過反思,上述因素給我們留下了強烈的印象,即根據法定利潤數字,溫州宏豐電工合金的潛在盈利能力並不像看上去那麼好。考慮到這一點,除非我們對風險有透徹的了解,否則我們不會考慮投資股票。每家公司都有風險,我們已經發現了溫州宏豐電合金的4個警告標誌(其中1個讓我們有點不舒服!)你應該知道。
In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there is always more to discover if you are capable of focussing your mind on minutiae. 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.
在這篇文章中,我們研究了許多可能損害利潤數字效用的因素,我們採取了謹慎的態度。但是,如果你能夠將注意力集中在細節上,總會有更多的事情需要發現。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。