Fuxing China Group Limited's (SGX:AWK) 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.
View our latest analysis for Fuxing China Group
SGX:AWK Earnings and Revenue History August 25th 2022
An Unusual Tax Situation
We can see that Fuxing China Group received a tax benefit of CN¥5.7m. It's always a bit noteworthy when a company is paid by the tax man, rather than paying the tax man. We're sure the company was pleased with its tax benefit. And since it previously lost money, it may well simply indicate the realisation of past tax losses. However, our data indicates that tax benefits can temporarily boost statutory profit in the year it is booked, but subsequently profit may fall back. Assuming the tax benefit is not repeated every year, we could see its profitability drop noticeably, all else being equal.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Fuxing China Group.
Our Take On Fuxing China Group's Profit Performance
Fuxing China Group reported that it received a tax benefit, rather than paid tax, in its last report. Given that sort of benefit is not recurring, a focus on the statutory profit might make the company seem better than it really is. Because of this, we think that it may be that Fuxing China Group's statutory profits are better than its underlying earnings power. The good news is that it earned a profit in the last twelve months, despite its previous loss. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've found that Fuxing China Group has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
This note has only looked at a single factor that sheds light on the nature of Fuxing China Group's profit. 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.
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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.
復興中國集團有限公司 SGX:AWK)強大的盈利報告並沒有設法改變其股票的市場。我們的分析表明,這可能是因為股東注意到了一些關於潛在因素的問題。
查看我們對復興中國集團的最新分析
新加坡:香港交易所盈利和收入歷史記錄 2022 年 8 月 25 日
不尋常的稅收狀況
我們可以看到,復興中國集團獲得了 5.7 萬人民幣的稅收優惠。當一家公司由稅務人員支付,而不是支付稅務人員時,總是有點值得注意。我們相信該公司對其稅收優惠感到滿意。而且,由於它以前損失了錢,因此很可能簡單地表明過去稅收損失的實現。但是,我們的數據顯示,稅收優惠可以在預訂的年度暫時增加法定利潤,但隨後的利潤可能會回落。假設稅收優惠不是每年重複,我們可以看到它的盈利能力明顯下降,其他所有其他都是平等的。
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復興中國集團的資產負債表分析。
我們對復興中國集團的利潤表現
復興中國集團在上一份報告中報告稱,它獲得了稅收優惠,而不是納稅。鑑於這種利益不是經常性的,專注於法定利潤可能會使公司看起來比實際上更好。正因為如此,我們認為復興中國集團的法定利潤可能優於其基礎盈利能力。好消息是,儘管先前的損失,但它在過去的十二個月中獲得了利潤。本文的目標是評估我們可以如何依靠法定收益來反映公司的潛力,但還有很多要考慮的事情。鑑於此,如果您想對公司進行更多分析,則必須了解所涉及的風險至關重要。例如,我們發現復興中國集團有 2 警告標誌 (1 有點關注!)在進一步進行分析之前,值得您關注。
本說明僅研究了一個單一因素,它揭示了復興中國集團的利潤性質。但總是有更多的發現,如果你有能力把你的思想集中在分鐘.有些人認為高股權回報是優質業務的好兆頭。雖然可能需要代表您進行一些研究,但您可能會發現這一點 自由 集合擁有高股權回報率的公司,或者內部人士正在購買的股票這個名單是有用的。
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這篇文章由簡單牆聖是一般性質. 我們僅使用公正的方法,根據歷史數據和分析師預測提供評論,我們的文章並不打算作為財務建議。 它並不構成購買或出售任何股票的建議,也不會考慮您的目標或您的財務狀況。我們的目標是為您帶來由基本數據驅動的長期集中分析。請注意,我們的分析可能不會考慮最新的價格敏感公司公告或定性材料。簡易華街在提及的任何股票中都沒有倉位。