There May Be Some Bright Spots In Anhui Wanyi Science and TechnologyLtd's (SHSE:688600) Earnings

The most recent earnings report from Anhui Wanyi Science and Technology Co.,Ltd. (SHSE:688600) was disappointing for shareholders. Despite the soft profit numbers, our analysis has optimistic about the overall quality of the income statement.

Check out our latest analysis for Anhui Wanyi Science and TechnologyLtd

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Anhui Wanyi Science and TechnologyLtd's profit was reduced by CN¥11m, 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. Anhui Wanyi Science and TechnologyLtd took a rather significant hit from unusual items in the year to March 2024. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.

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 Anhui Wanyi Science and TechnologyLtd's Profit Performance

As we discussed above, we think the significant unusual expense will make Anhui Wanyi Science and TechnologyLtd's statutory profit lower than it would otherwise have been. Based on this observation, we consider it possible that Anhui Wanyi Science and TechnologyLtd's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. 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 if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for Anhui Wanyi Science and TechnologyLtd you should know about.

Today we've zoomed in on a single data point to better understand the nature of Anhui Wanyi Science and TechnologyLtd'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 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.