Despite posting healthy earnings, Sino-Platinum Metals Co.,Ltd's (SHSE:600459 ) stock has been quite weak. Our analysis suggests that there are some reasons for hope that investors should be aware of.

How Do Unusual Items Influence Profit?

Importantly, our data indicates that Sino-Platinum MetalsLtd's profit was reduced by CN¥76m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. 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. If Sino-Platinum MetalsLtd doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.

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.

Our Take On Sino-Platinum MetalsLtd's Profit Performance

Unusual items (expenses) detracted from Sino-Platinum MetalsLtd's earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Sino-Platinum MetalsLtd's statutory profit actually understates its earnings potential! And the EPS is up 7.5% annually, over the last three years. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into Sino-Platinum MetalsLtd, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 1 warning sign for Sino-Platinum MetalsLtd and you'll want to know about it.

Today we've zoomed in on a single data point to better understand the nature of Sino-Platinum MetalsLtd's profit. 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.

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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.