Hong Leong Asia's (SGX:H22) Anemic Earnings Might Be Worse Than You Think
Hong Leong Asia's (SGX:H22) Anemic Earnings Might Be Worse Than You Think
A lackluster earnings announcement from Hong Leong Asia Ltd. (SGX:H22) last week didn't sink the stock price. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
View our latest analysis for Hong Leong Asia
The Impact Of Unusual Items On Profit
To properly understand Hong Leong Asia's profit results, we need to consider the S$10m gain attributed to 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 that's as you'd expect, given these boosts are described as 'unusual'. 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).
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 Hong Leong Asia's Profit Performance
Arguably, Hong Leong Asia's statutory earnings have been distorted by unusual items boosting profit. Therefore, it seems possible to us that Hong Leong Asia's true underlying earnings power is actually less than its statutory profit. But at least holders can take some solace from the 19% per annum growth in EPS for the last three. 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'd like to know more about Hong Leong Asia as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Hong Leong Asia has 1 warning sign and it would be unwise to ignore this.
This note has only looked at a single factor that sheds light on the nature of Hong Leong Asia'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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
一份平淡無奇的財報康亮亞洲有限公司。(新加坡證券交易所股票代碼:H22)上週的股價並未下跌。我們的分析表明,除了疲軟的利潤數據外,投資者還應該意識到數位中的其他一些潛在弱點。
查看我們對Hong Leong Asia的最新分析
異常專案對利潤的影響
為了正確理解宏利亞洲的盈利業績,我們需要考慮一下歸因於不尋常專案的1000萬新元收益。雖然有更高的利潤總是好事,但不尋常的東西帶來的巨大貢獻有時會挫傷我們的熱情。當我們分析全球絕大多數上市公司時,我們發現重大的不尋常專案往往不會重複。考慮到這些提振被描述為“不尋常的”,這正如你所預期的那樣。假設這些不同尋常的專案在本年度不會再次出現,我們因此預計明年的利潤會更弱(也就是說,在沒有業務增長的情況下)。
這可能會讓你想知道,分析師對未來盈利能力的預測是什麼。幸運的是,您可以單擊此處查看基於他們估計的未來盈利能力的互動圖表。
我們對宏亮亞洲盈利表現的看法
可以說,宏亮亞洲的法定收益被不尋常的提振利潤專案扭曲了。因此,在我們看來,宏利亞洲的真實潛在盈利能力實際上可能低於其法定利潤。但至少持有者可以從過去三年每股收益每年19%的增長中得到一些安慰。當然,當談到分析其收益時,我們只是觸及了皮毛;人們還可以考慮利潤率、預測增長和投資回報等因素。如果你想更多地瞭解宏隆亞洲的業務,瞭解它面臨的任何風險是很重要的。我們在進行分析時發現,康亮亞洲1個警告標誌忽視這一點是不明智的。
這份報告只關注了一個因素,這一因素揭示了宏利亞洲的利潤性質。但還有很多其他方式可以讓你瞭解一家公司的看法。一些人認為,高股本回報率是高質量企業的良好標誌。雖然這可能需要為您做一些研究,但您可能會發現免費擁有高股本回報率的公司的集合,或者是內部人士購買的有用的股票清單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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