We Think You Should Be Aware Of Some Concerning Factors In Tianjin Binhai Teda Logistics (Group)'s (HKG:8348) Earnings

Tianjin Binhai Teda Logistics (Group) Corporation Limited's (HKG:8348) robust recent earnings didn't do much to move the stock. However the statutory profit number doesn't tell the whole story, and we have found some factors which might be of concern to shareholders.

See our latest analysis for Tianjin Binhai Teda Logistics (Group)

The Impact Of Unusual Items On Profit

For anyone who wants to understand Tianjin Binhai Teda Logistics (Group)'s profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from CN¥8.9m worth of unusual items. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And that's as you'd expect, given these boosts are described as 'unusual'. We can see that Tianjin Binhai Teda Logistics (Group)'s positive unusual items were quite significant relative to its profit in the year to December 2023. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Tianjin Binhai Teda Logistics (Group).

Our Take On Tianjin Binhai Teda Logistics (Group)'s Profit Performance

As we discussed above, we think the significant positive unusual item makes Tianjin Binhai Teda Logistics (Group)'s earnings a poor guide to its underlying profitability. As a result, we think it may well be the case that Tianjin Binhai Teda Logistics (Group)'s underlying earnings power is lower than its statutory profit. The good news is that its earnings per share increased slightly in the last year. 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. If you'd like to know more about Tianjin Binhai Teda Logistics (Group) as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 3 warning signs for Tianjin Binhai Teda Logistics (Group) you should know about.

This note has only looked at a single factor that sheds light on the nature of Tianjin Binhai Teda Logistics (Group)'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.