We Like ShenZhen Click TechnologyLTD's (SZSE:002782) Earnings For More Than Just Statutory Profit

Despite posting healthy earnings, ShenZhen Click Technology Co.,LTD.'s (SZSE:002782 ) stock has been quite weak. We have done some analysis, and found some encouraging factors that we believe the shareholders should consider.

Check out our latest analysis for ShenZhen Click TechnologyLTD

The Impact Of Unusual Items On Profit

Importantly, our data indicates that ShenZhen Click TechnologyLTD's profit was reduced by CN¥51m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. If ShenZhen Click TechnologyLTD doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming 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 ShenZhen Click TechnologyLTD's Profit Performance

Unusual items (expenses) detracted from ShenZhen Click TechnologyLTD's earnings over the last year, but we might see an improvement next year. Because of this, we think ShenZhen Click TechnologyLTD's earnings potential is at least as good as it seems, and maybe even better! 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. So while earnings quality is important, it's equally important to consider the risks facing ShenZhen Click TechnologyLTD at this point in time. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of ShenZhen Click TechnologyLTD.

This note has only looked at a single factor that sheds light on the nature of ShenZhen Click TechnologyLTD's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.

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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.