Investors Can Find Comfort In Tsui Wah Holdings' (HKG:1314) Earnings Quality
Investors Can Find Comfort In Tsui Wah Holdings' (HKG:1314) Earnings Quality
The market for Tsui Wah Holdings Limited's (HKG:1314) shares didn't move much after it posted weak earnings recently. We did some digging, and we believe the earnings are stronger than they seem.
最近,翠華控股有限公司(HKG:1314)的股票收市價格沒有怎麼變化,這是由於其近期業績表現不佳。我們進行了一些調查,並且我們認爲其盈利要強於表面看起來的數據。
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Examining Cashflow Against Tsui Wah Holdings' Earnings
檢查翠華控股的現金流與盈利情況
As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow.
正如財務專業人士所知,從現金流量計算出的應計比率是評估一家公司自由現金流(FCF)是否與其利潤相匹配的關鍵指標。換句話說,該比率將自由現金流從淨利潤中減去,然後將該數字除以該期間公司的平均營運資產。該比率告訴我們公司的多少利潤不是由F C F支持的。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. 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. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
這意味着負的應計比率是一件好事,因爲它顯示公司帶來的自由現金流比其利潤所暗示的要多。雖然擁有正的應計比率不是問題,表明一定水平的非現金利潤,但高的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。引用Lewellen和Resutek 2014年的一篇論文“具有更高應計的公司趨向於在未來盈利更少”。
For the year to March 2024, Tsui Wah Holdings had an accrual ratio of -0.45. That indicates that its free cash flow quite significantly exceeded its statutory profit. Indeed, in the last twelve months it reported free cash flow of HK$151m, well over the HK$39.1m it reported in profit. Tsui Wah Holdings' free cash flow improved over the last year, which is generally good to see. Having said that, there is more to the story. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio.
對於截至2024年3月的財年,翠華控股的計提比率爲-0.45. 這表明它的自由現金流大大超過了其法定利潤。實際上,在過去的十二個月中,其報告的自由現金流爲1.51億港元,遠超過它報告的3.91億港元利潤。翠華控股的自由現金流在過去一年有所改善,這通常是一個好的跡象。儘管如此,實情可能還不止如此。我們可以看到,飛凡項目影響了其法定利潤,因此影響了計提比率。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Tsui Wah Holdings.
注意: 我們始終建議投資者檢查資產負債表強度。點擊此處,進入我們對翠華控股的資產負債表分析。
The Impact Of Unusual Items On Profit
除了稀釋之外,還應該注意的是,萬集科技在過去12個月中因不尋常項目獲得了價值人民幣3.5萬元的利潤。雖然我們希望看到利潤增加,但當這些不尋常項目對利潤做出重大貢獻時,我們會更加謹慎。我們對全球大部分上市公司的數據進行了分析,發現不尋常項目往往是一次性的。這正如我們所期望的那樣,因爲這些提升被描述爲"不尋常"。相對於其利潤而言,萬集科技在2021年12月前的不尋常項目貢獻大。因此,我們可以推斷出,這些不尋常項目正在使其財務利潤顯著增強。
Tsui Wah Holdings' profit was reduced by unusual items worth HK$29m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. In the twelve months to March 2024, Tsui Wah Holdings had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.
在過去的十二個月中,翠華控股的利潤減少了飛凡項目價值2.9億港元,這有助於提高現金轉化率。如果這些飛凡項目包括非現金費用,我們預計會看到強勁的計提比率,這正是在這種情況下發生的。看到飛凡項目損失公司的利潤從未令人愉快,但好的一面是,事情很快就會有所改善。當我們分析全球大多數上市公司時,我們發現重要的飛凡項目通常不會重複發生。鑑於這些行項目被視爲不尋常的,這並不令人驚訝。在截至2024年3月的十二個月中,翠華控股的飛凡項目支出很大。因此,我們可以推斷出,這些飛凡項目使其法定利潤顯然比原來要弱。
Our Take On Tsui Wah Holdings' Profit Performance
我們對翠華控股的盈利表現看法
In conclusion, both Tsui Wah Holdings' accrual ratio and its unusual items suggest that its statutory earnings are probably reasonably conservative. After considering all this, we reckon Tsui Wah Holdings' statutory profit probably understates its earnings potential! If you want to do dive deeper into Tsui Wah Holdings, you'd also look into what risks it is currently facing. For example - Tsui Wah Holdings has 4 warning signs we think you should be aware of.
總之,翠華控股的計提比率和非常規項目表明其法定盈利可能相當保守。在考慮所有這些因素之後,我們認爲翠華控股的法定利潤可能低估了其盈利潛力。如果您想深入了解翠華控股,還可以研究它目前面臨的風險。例如,翠華控股有4個警示標誌,我們認爲您應該注意。
After our examination into the nature of Tsui Wah Holdings' profit, we've come away optimistic for the company. 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 with high insider ownership.
在我們對翠華控股的盈利性質進行調查後,我們對該公司持樂觀態度。但是,如果您能集中精力關注細節,就總有更多可發現的東西。有些人認爲高股本回報率是高質量企業的良好標誌。因此,您可能希望查看這個具有高股本回報率的公司收藏,或者這個股票擁有高內部持股比例的股票清單。
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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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。