Triductor Technology (Suzhou)'s (SHSE:688259) Shareholders May Want To Dig Deeper Than Statutory Profit

Triductor Technology (Suzhou) Inc.'s (SHSE:688259 ) 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.

Check out our latest analysis for Triductor Technology (Suzhou)

How Do Unusual Items Influence Profit?

To properly understand Triductor Technology (Suzhou)'s profit results, we need to consider the CN¥20m gain attributed to unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. Which is hardly surprising, given the name. We can see that Triductor Technology (Suzhou)'s positive unusual items were quite significant relative to its profit in the year to September 2024. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Triductor Technology (Suzhou).

Our Take On Triductor Technology (Suzhou)'s Profit Performance

As we discussed above, we think the significant positive unusual item makes Triductor Technology (Suzhou)'s earnings a poor guide to its underlying profitability. As a result, we think it may well be the case that Triductor Technology (Suzhou)'s underlying earnings power is lower than its statutory profit. The good news is that, its earnings per share increased by 13% in the last year. 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. If you'd like to know more about Triductor Technology (Suzhou) as a business, it's important to be aware of any risks it's facing. Our analysis shows 3 warning signs for Triductor Technology (Suzhou) (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.

Today we've zoomed in on a single data point to better understand the nature of Triductor Technology (Suzhou)'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 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.