We Think That There Are Some Issues For Innovation New Material Technology (SHSE:600361) Beyond Its Promising Earnings
We Think That There Are Some Issues For Innovation New Material Technology (SHSE:600361) Beyond Its Promising Earnings
The market for Innovation New Material Technology Co., Ltd.'s (SHSE:600361) stock was strong after it released a healthy earnings report last week. Despite this, our analysis suggests that there are some factors weakening the foundations of those good profit numbers.
創新新材料科技有限公司的市場s(上海證券交易所代碼:600361)在上週發佈了健康的收益報告後,該股表現強勁。儘管如此,我們的分析表明,有一些因素削弱了這些良好利潤數字的基礎。
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A Closer Look At Innovation New Material Technology's Earnings
仔細研究創新新材料科技的收益
Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
許多投資者還沒有聽說過現金流的應計比率,但它實際上是衡量公司在給定時期內自由現金流(FCF)在多大程度上支持利潤的有用指標。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。你可以將現金流的應計比率視爲 “非FCF利潤率”。
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, Innovation New Material Technology had an accrual ratio of 0.34. We can therefore deduce that its free cash flow fell well short of covering its statutory profit, suggesting we might want to think twice before putting a lot of weight on the latter. In the last twelve months it actually had negative free cash flow, with an outflow of CN¥3.7b despite its profit of CN¥973.9m, mentioned above. We also note that Innovation New Material Technology's free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of CN¥3.7b. Unfortunately for shareholders, the company has also been issuing new shares, diluting their share of future earnings.
在截至2024年3月的一年中,創新新材料技術的應計比率爲0.34。因此,我們可以推斷出其自由現金流遠不足以支付其法定利潤,這表明在對後者進行大量考慮之前,我們可能需要三思而後行。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9.739億元人民幣,但流出37億元人民幣,如上所述。我們還注意到,創新新材料科技去年的自由現金流實際上也是負的,因此我們可以理解股東是否被其37億元人民幣的流出所困擾。對於股東來說,不幸的是,該公司也一直在發行新股,稀釋了他們在未來收益中所佔的份額。
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.
這可能會讓你想知道分析師對未來盈利能力的預測。幸運的是,您可以單擊此處查看根據他們的估計描繪未來盈利能力的交互式圖表。
To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. As it happens, Innovation New Material Technology issued 8.3% more new shares over the last year. That means its earnings are split among a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of Innovation New Material Technology's EPS by clicking here.
要了解公司收益增長的價值,必須考慮削弱股東的利益。碰巧的是,創新新材料科技發行的新股比去年增加了8.3%。這意味着其收益將分配給更多的股票。在慶祝淨收入的同時忽略稀釋就像歡欣鼓舞,因爲你只有一片更大的披薩,但卻忽略了披薩現在被切成更多片的事實。您可以點擊此處查看創新新材料科技的每股收益圖表。
A Look At The Impact Of Innovation New Material Technology's Dilution On Its Earnings Per Share (EPS)
看看創新新材料科技的稀釋對其每股收益(EPS)的影響
Innovation New Material Technology has improved its profit over the last three years, with an annualized gain of 1,243% in that time. In comparison, earnings per share only gained 124% over the same period. While we did see a very small increase, net profit was basically flat over the last year. While EPS growth was also pretty flat, but no prizes for guessing that it looked worse than the net income. And so, you can see quite clearly that dilution is influencing shareholder earnings.
創新新材料科技在過去三年中提高了利潤,同期年化增長了1,243%。相比之下,收益 每股 同期僅上漲了124%。儘管我們確實看到了很小的增長,但淨利潤與去年基本持平。儘管每股收益的增長也相當平緩,但猜測它看起來比淨收入差是沒有好處的。因此,你可以清楚地看到稀釋正在影響股東收益。
In the long term, earnings per share growth should beget share price growth. So Innovation New Material Technology shareholders will want to see that EPS figure continue to increase. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit.
從長遠來看,收益 每股 增長應該帶來股價的增長。因此,創新新材料科技的股東們將希望看到每股收益的數字繼續增加。但另一方面,得知利潤(但不是每股收益)在改善,我們就不那麼興奮了。對於普通零售股東來說,每股收益是檢查您假設的公司利潤 “份額” 的好方法。
Our Take On Innovation New Material Technology's Profit Performance
我們對創新的看法新材料技術的利潤表現
In conclusion, Innovation New Material Technology has weak cashflow relative to earnings, which indicates lower quality earnings, and the dilution means its earnings per share growth is weaker than its profit growth. Considering all this we'd argue Innovation New Material Technology's profits probably give an overly generous impression of its sustainable level of profitability. So while earnings quality is important, it's equally important to consider the risks facing Innovation New Material Technology at this point in time. Be aware that Innovation New Material Technology is showing 4 warning signs in our investment analysis and 2 of those are a bit concerning...
總之,Innovation New Material Technology的現金流相對於收益較弱,這表明收益質量較低,而稀釋意味着其每股收益增長弱於其利潤增長。考慮到所有這些,我們認爲創新新材料技術的利潤可能給人留下了對其可持續盈利水平的過於慷慨的印象。因此,儘管收益質量很重要,但考慮創新新材料技術目前面臨的風險同樣重要。請注意,創新新材料技術在我們的投資分析中顯示出4個警告信號,其中2個有點令人擔憂...
Our examination of Innovation New Material Technology has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. 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. 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.
我們對創新新材料技術的研究側重於某些可能使其收益看起來好於實際的因素。而且,在此基礎上,我們有些懷疑。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。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。
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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。