BYD's (HKG:1211) Profits May Not Reveal Underlying Issues

Simply Wall St.11-06 12:19

BYD Company Limited's (HKG:1211 ) stock didn't jump after it announced some healthy earnings. Our analysis showed that there are some concerning factors in the earnings that investors may be cautious...

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Our analysis showed that there are some concerning factors in the earnings that investors may be cautious...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/automobiles/hkg-1211/byd-shares/news/byds-hkg1211-profits-may-not-reveal-underlying-issues\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","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>BYD's (HKG:1211) Profits May Not Reveal Underlying Issues</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\">\nBYD's (HKG:1211) Profits May Not Reveal Underlying Issues\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-06 12:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/automobiles/hkg-1211/byd-shares/news/byds-hkg1211-profits-may-not-reveal-underlying-issues><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>BYD Company Limited's (HKG:1211 ) stock didn't jump after it announced some healthy earnings.  Our analysis showed that there are some concerning factors in the earnings that investors may be cautious...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/automobiles/hkg-1211/byd-shares/news/byds-hkg1211-profits-may-not-reveal-underlying-issues\">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":null,"symbol_name":null,"start_time":0,"source_url":"https://simplywall.st/stocks/hk/automobiles/hkg-1211/byd-shares/news/byds-hkg1211-profits-may-not-reveal-underlying-issues","article_id":"2481625577","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4021000-choice2-main-header/1585186704391"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481625577","pubTimestamp":1730866766,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"BYD Company Limited's ( HKG:1211 ) stock didn't jump after it announced some healthy earnings. Our analysis showed that...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"比亚迪（HKG：1211）的利润可能无法揭示潜在问题","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"81211":0.6,"01211":1,"002594":0.6,"BYDDY":0.6,"HYDD.SI":0.6},"content_text":"BYD Company Limited's (HKG:1211 ) stock didn't jump after it announced some healthy earnings.  Our analysis showed that there are some concerning factors in the earnings that investors may be cautious of.     See our latest analysis for BYD SEHK:1211 Earnings and Revenue History November 6th 2024  The Impact Of Unusual Items On Profit  For anyone who wants to understand BYD's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from CN¥2.9b worth of 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.  When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year.  And that's as you'd expect, given these boosts are described as 'unusual'.   If BYD doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current 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 BYD's Profit Performance Arguably, BYD's statutory earnings have been distorted by unusual items boosting profit.      Therefore, it seems possible to us that BYD's true underlying earnings power is actually less than its statutory profit.    But on the bright side, 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.  This note has only looked at a single factor that sheds light on the nature of BYD'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. Valuation is complex, but we're here to simplify it.Discover if BYD might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave 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. 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