We Think China Tianying's (SZSE:000035) Solid Earnings Are Understated

Following the solid earnings report from China Tianying Inc. (SZSE:000035), the market responded by bidding up the stock price. However, we think that shareholders should be cautious as we found some worrying factors underlying the profit.

Check out our latest analysis for China Tianying

Our Take On China Tianying's Profit Performance

Therefore, it seems possible to us that China Tianying's true underlying earnings power is actually less than its statutory profit. If you'd like to know more about China Tianying as a business, it's important to be aware of any risks it's facing. For example - China Tianying has 1 warning sign we think you should be aware of.

Our examination of China Tianying has focussed on certain factors that can make its earnings look better than they are. 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.

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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.