Kwung's Holdings' (HKG:1925) Promising Earnings May Rest On Soft Foundations
Kwung's Holdings' (HKG:1925) Promising Earnings May Rest On Soft Foundations
Kwung's Holdings Limited's (HKG:1925) robust earnings report didn't manage to move the market for its stock. Our analysis suggests that this might be because shareholders have noticed some concerning underlying factors.
Kwung's Holdings Limited(HKG: 1925)强劲的收益报告未能推动其股票的市场走势。我们的分析表明,这可能是因为股东已经注意到了一些相关的潜在因素。
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A Closer Look At Kwung's Holdings' Earnings
仔细研究Kwung's Holdings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. This ratio tells us how much of a company's profit is not backed by free cashflow.
许多投资者尚未听说过现金流的应计比率,但它实际上是衡量公司在给定时期内自由现金流(FCF)在多大程度上支持利润的有用指标。应计比率从给定时期的利润中减去FCF,然后将结果除以该时间内公司的平均运营资产。这个比率告诉我们,一家公司的利润中有多少没有自由现金流的支持。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. 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. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
因此,负的应计比率对公司来说是正数,而正的应计比率是负数。尽管应计比率为正(表明非现金利润达到一定水平)不是问题,但高应计比率可以说是一件坏事,因为它表明纸质利润与现金流不匹配。那是因为一些学术研究表明,高应计比率往往会导致利润下降或利润增长放缓。
For the year to December 2023, Kwung's Holdings had an accrual ratio of 0.29. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, raising questions about how useful that profit figure really is. Over the last year it actually had negative free cash flow of CN¥9.7m, in contrast to the aforementioned profit of CN¥60.6m. We saw that FCF was CN¥65m a year ago though, so Kwung's Holdings has at least been able to generate positive FCF in the past. 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. One positive for Kwung's Holdings shareholders is that it's accrual ratio was significantly better last year, providing reason to believe that it may return to stronger cash conversion in the future. Shareholders should look for improved cashflow relative to profit in the current year, if that is indeed the case.
在截至2023年12月的一年中,Kwung's Holdings的应计比率为0.29。因此,我们知道它的自由现金流大大低于其法定利润,这引发了人们对该利润数字到底有多有用的质疑。在过去的一年里,它实际上有 负面的 自由现金流为970万元人民币,而上述利润为6,060万元人民币。但是,我们看到一年前的FCF为6500万元人民币,因此Kwung's Holdings过去至少能够产生正的FCF。但是,这还不是要考虑的全部。我们可以看到,不寻常的项目影响了其法定利润,从而影响了应计比率。对Kwung's Holdings股东来说,一个积极因素是,去年的应计比率明显改善,这使人们有理由相信其未来可能会恢复更强劲的现金转换。如果确实如此,股东应寻求在本年度的现金流相对于利润的改善。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Kwung's Holdings.
注意:我们始终建议投资者检查资产负债表的实力。点击此处查看我们对Kwung's Holdings的资产负债表分析。
The Impact Of Unusual Items On Profit
不寻常物品对利润的影响
Given the accrual ratio, it's not overly surprising that Kwung's Holdings' profit was boosted by unusual items worth CN¥6.8m in the last twelve months. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And, after all, that's exactly what the accounting terminology implies. 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).
考虑到应计比率,在过去十二个月中,Kwung's Holdings的利润因价值680万元人民币的不寻常项目而提振也就不足为奇了。虽然获得更高的利润总是件好事,但来自不寻常物品的巨额捐款有时会抑制我们的热情。我们统计了全球大多数上市公司的数字,不寻常的物品在自然界中很常见。而且,毕竟,这正是会计术语的含义。假设这些不寻常的项目在本年度不会再次出现,因此我们预计明年的利润将疲软(也就是说,在业务没有增长的情况下)。
Our Take On Kwung's Holdings' Profit Performance
我们对Kwung's Holdings盈利表现的看法
Summing up, Kwung's Holdings received a nice boost to profit from unusual items, but could not match its paper profit with free cash flow. For the reasons mentioned above, we think that a perfunctory glance at Kwung's Holdings' statutory profits might make it look better than it really is on an underlying level. If you'd like to know more about Kwung's Holdings as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 3 warning signs we've spotted with Kwung's Holdings (including 1 which shouldn't be ignored).
总而言之,Kwung's Holdings从不寻常的项目中获得了不错的利润提振,但其纸面利润无法与自由现金流相提并论。出于上述原因,我们认为,敷衍地看一眼Kwung's Holdings的法定利润可能会使其看起来比基础层面的实际利润要好。如果您想进一步了解Kwung's Holdings作为一家企业,请务必了解其面临的任何风险。为此,你应该了解我们在Kwung's Holdings身上发现的3个警告信号(包括一个不容忽视的警告信号)。
Our examination of Kwung's Holdings 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 are plenty of other ways to inform your opinion of a company. 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 that insiders are buying.
我们对Kwung's Holdings的审查侧重于某些可能使其收益看起来好于实际的因素。而且,在此基础上,我们有些怀疑。但是,还有很多其他方法可以让你对公司的看法。例如,许多人认为高股本回报率是有利的商业经济的标志,而另一些人则喜欢 “关注资金”,寻找内部人士正在买入的股票。因此,你可能希望看到这份免费收藏的拥有高股本回报率的公司,或者这份内部人士正在购买的股票清单。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。