Sino-Platinum MetalsLtd (SHSE:600459) Is Posting Promising Earnings But The Good News Doesn’t Stop There

The stock was sluggish on the back of Sino-Platinum Metals Co.,Ltd's (SHSE:600459) recent earnings report. Along with the solid headline numbers, we think that investors have some reasons for optimism.

See our latest analysis for Sino-Platinum MetalsLtd

The Impact Of Unusual Items On Profit

For anyone who wants to understand Sino-Platinum MetalsLtd's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by CN¥76m due to unusual items. 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 Sino-Platinum MetalsLtd 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 Sino-Platinum MetalsLtd's Profit Performance

Unusual items (expenses) detracted from Sino-Platinum MetalsLtd's earnings over the last year, but we might see an improvement next year. Because of this, we think Sino-Platinum MetalsLtd's earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 7.5% annually, over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So while earnings quality is important, it's equally important to consider the risks facing Sino-Platinum MetalsLtd at this point in time. You'd be interested to know, that we found 1 warning sign for Sino-Platinum MetalsLtd and you'll want to know about it.

Today we've zoomed in on a single data point to better understand the nature of Sino-Platinum MetalsLtd's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. 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. 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.