Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) Strong Earnings Are Of Good Quality

Simply Wall St.08-20

When companies post strong earnings, the stock generally performs well, just like Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) stock has recently. Our analysis found some more factors that we ...

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Our analysis found some more factors that we ...</p>\n\n<a href=\"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-sgx-bs6-220719368.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_sg","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) Strong Earnings Are Of Good Quality</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nYangzijiang Shipbuilding (Holdings)'s (SGX:BS6) Strong Earnings Are Of Good Quality\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-20 06:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-sgx-bs6-220719368.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When companies post strong earnings, the stock generally performs well, just like Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) stock has recently. Our analysis found some more factors that we ...</p>\n\n<a href=\"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-sgx-bs6-220719368.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BS6.SI","symbol_name":"扬子江船业","start_time":0,"source_url":"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-sgx-bs6-220719368.html","article_id":"2460984030","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/YLn3ijIeE0eqFyPEk1KPDA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/1762e59d0031dd7c767b613ac375bc3b"],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-sgx-bs6-220719368.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2460984030","pubTimestamp":1724105239,"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"When companies post strong earnings, the stock generally performs well, just like Yangzijiang Shipbuilding  Ltd.'s  stock has recently. Our analysis found some more factors that we think are good for shareholders.Yangzijiang Shipbuilding  has an accrual ratio of -0.64 for the year to June 2024. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of CN12b, well over the CN5.43b it reported in profit. Yangzijiang Shipbuilding 's free cash flow improved over the last year, which is generally good to see.Our Take On Yangzijiang Shipbuilding 's Profit Performance. As we discussed above, Yangzijiang Shipbuilding 's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think Yangzijiang Shipbuilding 's underlying earnings potential is as good as, or possibly even better, th","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BS6.SI":"扬子江船业","SO7.SI":"YZJ Shipbldg CNY"},"translate_title":"扬子江船业（控股）（新交所股票代码：BS6）强劲的盈利质量良好","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BS6.SI":1,"SO7.SI":0.9},"content_text":"When companies post strong earnings, the stock generally performs well, just like Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) stock has recently. Our analysis found some more factors that we think are good for shareholders. \n Check out our latest analysis for Yangzijiang Shipbuilding (Holdings) \n\n\n\n  SGX:BS6 Earnings and Revenue History August 19th 2024\n \n\n Examining Cashflow Against Yangzijiang Shipbuilding (Holdings)'s Earnings \n One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow. \n That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, \"firms with higher accruals tend to be less profitable in the future\". \n Yangzijiang Shipbuilding (Holdings) has an accrual ratio of -0.64 for the year to June 2024. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of CN¥12b, well over the CN¥5.43b it reported in profit. Yangzijiang Shipbuilding (Holdings)'s free cash flow improved over the last year, which is generally good to see. \n 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. \nOur Take On Yangzijiang Shipbuilding (Holdings)'s Profit Performance\n As we discussed above, Yangzijiang Shipbuilding (Holdings)'s accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think Yangzijiang Shipbuilding (Holdings)'s underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And on top of that, its earnings per share have grown at an extremely impressive rate over the last three years. 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. Ultimately, this article has formed an opinion based on historical data. However, it can also be great to think about what analysts are forecasting for the future. At Simply Wall St, we have analyst estimates which you can view by clicking here. \n This note has only looked at a single factor that sheds light on the nature of Yangzijiang Shipbuilding (Holdings)'s profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free  collection of companies boasting high return on equity, or  this list of stocks with high insider ownership. \nHave 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.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":1,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2460984030"}