Keen Ocean International Holding's (HKG:8070) Solid Earnings Have Been Accounted For Conservatively
Keen Ocean International Holding's (HKG:8070) Solid Earnings Have Been Accounted For Conservatively
The market seemed underwhelmed by the solid earnings posted by Keen Ocean International Holding Limited (HKG:8070) recently. Our analysis suggests that there are some reasons for hope that investors should be aware of.
建洋國際控股有限公司(HKG: 8070)最近公佈的穩健收益似乎令市場不知所措。我們的分析表明,投資者應該意識到一些抱有希望的理由。
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Zooming In On Keen Ocean International Holding's Earnings
放大Keen Ocean 國際控股的收益
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. 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'.
許多投資者尚未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。應計比率從給定時期的利潤中減去FCF,然後將結果除以該時間內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”。
Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. 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.
因此,當公司的應計比率爲負時,這實際上被認爲是一件好事,但如果其應計比率爲正,則是一件壞事。雖然正應計比率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,因爲它表明紙面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,高應計率對短期利潤來說是個壞兆頭。
For the year to December 2023, Keen Ocean International Holding had an accrual ratio of -0.59. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. In fact, it had free cash flow of HK$71m in the last year, which was a lot more than its statutory profit of HK$17.2m. Keen Ocean International Holding's free cash flow improved over the last year, which is generally good to see. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio.
在截至2023年12月的一年中,Keen Ocean International Holding的應計比率爲-0.59。這意味着它的現金轉化率非常好,而且其去年的收益實際上大大低估了其自由現金流。實際上,它去年的自由現金流爲7100萬港元,遠遠超過其1720萬港元的法定利潤。Keen Ocean International Holding的自由現金流比去年有所改善,總體而言,這是值得期待的。但是,這還不是要考慮的全部。我們可以看到,不尋常的項目影響了其法定利潤,從而影響了應計比率。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Keen Ocean International 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Keen Ocean International Holding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?
Surprisingly, given Keen Ocean International Holding's accrual ratio implied strong cash conversion, its paper profit was actually boosted by HK$2.8m in 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. And, after all, that's exactly what the accounting terminology implies. If Keen Ocean International Holding doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year.
令人驚訝的是,鑑於Keen Ocean International Holding的應計比率意味着強勁的現金轉換,其票面利潤實際上是由280萬港元的不尋常項目提振的。雖然獲得更高的利潤總是件好事,但來自不尋常物品的巨額捐款有時會抑制我們的熱情。當我們分析全球絕大多數上市公司時,我們發現重大不尋常的事項往往不會重演。而且,畢竟,這正是會計術語的含義。如果Keen Ocean International Holding認爲這種捐款不會重演,那麼在其他條件相同的情況下,我們預計其本年度的利潤將下降。
Our Take On Keen Ocean International Holding's Profit Performance
我們對建洋國際控股盈利表現的看法
In conclusion, Keen Ocean International Holding's accrual ratio suggests its statutory earnings are of good quality, but on the other hand the profits were boosted by unusual items. Considering all the aforementioned, we'd venture that Keen Ocean International Holding's profit result is a pretty good guide to its true profitability, albeit a bit on the conservative side. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Be aware that Keen Ocean International Holding is showing 2 warning signs in our investment analysis and 1 of those can't be ignored...
總之,Keen Ocean International Holding的應計比率表明其法定收益質量良好,但另一方面,利潤是由不尋常的項目提振的。考慮到上述所有因素,我們認爲Keen Ocean International Holding的盈利業績可以很好地指導其真正的盈利能力,儘管有點保守。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。請注意,Keen Ocean International Holding在我們的投資分析中顯示了兩個警告信號,其中一個不容忽視...
In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. 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 that insiders are buying to be useful.
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,以此作爲企業的指南。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。