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.
永利地產投資有限公司(HKG:864)近期強勁的收益對股價影響不大。我們認為,這是由於投資者將目光投向了法定利潤之外,而關注的是他們所看到的。
查看我們對永利地產投資的最新分析
聯交所:864盈利及收入歷史2022年9月22日
異常項目對利潤的影響
要正確理解永利地產投資公司的盈利業績,我們需要考慮一下被歸因於不尋常項目的1400萬港元收益。我們不能否認,更高的利潤通常會讓我們保持樂觀,但如果利潤是可持續的,我們更願意這樣做。我們對全球大多數上市公司進行了統計,不尋常的項目在性質上是一次性的,這是非常常見的。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。我們可以看到,在截至2022年6月的一年中,永利地產投資的積極異常項目與其利潤相比相當重要。在其他條件不變的情況下,這可能會使法定利潤成為衡量潛在盈利能力的糟糕指標。
注:我們總是建議投資者檢查資產負債表的實力。點擊此處進入我們對永利地產投資的資產負債表分析。
我們對永利地產投資公司盈利表現的看法
如前所述,永利地產投資公司從特殊項目中獲得的巨大提振不會無限期地存在,因此其法定收益可能不能很好地反映其潛在盈利能力。因此,我們認為永利地產投資的法定利潤可能是其潛在盈利能力的不良指引,並可能給投資者對該公司過於樂觀的印象。好的一面是,該公司在去年虧損後,表現出了足夠的改善,今年實現了盈利。本文的目的是評估我們可以在多大程度上依賴法定收益來反映公司的潛力,但還有很多東西需要考慮。考慮到這一點,除非我們對風險有透徹的瞭解,否則我們不會考慮投資股票。每家公司都有風險,我們已經發現永利地產投資的3個警告標誌你應該知道。
這份報告只關注了一個因素,它揭示了永利地產投資公司的利潤性質。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。