Wing Lee Property Investments Limited's (HKG:864) robust recent earnings didn't do much to move the stock. We think this is due to investors looking beyond the statutory profits and being concerned with what they see.
View our latest analysis for Wing Lee Property Investments
SEHK:864 Earnings and Revenue History September 22nd 2022
The Impact Of Unusual Items On Profit
To properly understand Wing Lee Property Investments' profit results, we need to consider the HK$14m gain attributed to unusual items. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. 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 that's as you'd expect, given these boosts are described as 'unusual'. We can see that Wing Lee Property Investments' positive unusual items were quite significant relative to its profit in the year to June 2022. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Wing Lee Property Investments.
Our Take On Wing Lee Property Investments' Profit Performance
As previously mentioned, Wing Lee Property Investments' large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. For this reason, we think that Wing Lee Property Investments' statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. On the bright side, the company showed enough improvement to book a profit this year, after losing money last year. 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. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 3 warning signs for Wing Lee Property Investments you should know about.
This note has only looked at a single factor that sheds light on the nature of Wing Lee Property Investments' 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.
永利地产投资有限公司(HKG:864)近期强劲的收益对股价影响不大。我们认为,这是由于投资者将目光投向了法定利润之外,而关注的是他们所看到的。
查看我们对永利地产投资的最新分析
联交所:864盈利及收入历史2022年9月22日
异常项目对利润的影响
要正确理解永利地产投资公司的盈利业绩,我们需要考虑一下被归因于不寻常项目的1400万港元收益。我们不能否认,更高的利润通常会让我们保持乐观,但如果利润是可持续的,我们更愿意这样做。我们对全球大多数上市公司进行了统计,不寻常的项目在性质上是一次性的,这是非常常见的。考虑到这些提振被描述为“不寻常的”,这正如你所预期的那样。我们可以看到,在截至2022年6月的一年中,永利地产投资的积极异常项目与其利润相比相当重要。在其他条件不变的情况下,这可能会使法定利润成为衡量潜在盈利能力的糟糕指标。
注:我们总是建议投资者检查资产负债表的实力。点击此处进入我们对永利地产投资的资产负债表分析。
我们对永利地产投资公司盈利表现的看法
如前所述,永利地产投资公司从特殊项目中获得的巨大提振不会无限期地存在,因此其法定收益可能不能很好地反映其潜在盈利能力。因此,我们认为永利地产投资的法定利润可能是其潜在盈利能力的不良指引,并可能给投资者对该公司过于乐观的印象。好的一面是,该公司在去年亏损后,表现出了足够的改善,今年实现了盈利。本文的目的是评估我们可以在多大程度上依赖法定收益来反映公司的潜力,但还有很多东西需要考虑。考虑到这一点,除非我们对风险有透彻的了解,否则我们不会考虑投资股票。每家公司都有风险,我们已经发现永利地产投资的3个警告标志你应该知道。
这份报告只关注了一个因素,它揭示了永利地产投资公司的利润性质。但还有很多其他方式可以让你了解一家公司的看法。一些人认为,高股本回报率是高质量企业的良好标志。虽然这可能需要为您做一些研究,但您可能会发现免费拥有高股本回报率的公司的集合,或者是内部人士购买的有用的股票清单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。