Some Investors May Be Willing To Look Past YHI International's (SGX:BPF) Soft Earnings

The market for YHI International Limited's (SGX:BPF) shares didn't move much after it posted weak earnings recently. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.

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How Do Unusual Items Influence Profit?

For anyone who wants to understand YHI International's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by S$2.1m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. In the twelve months to June 2025, YHI International had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker 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 YHI International.

Our Take On YHI International's Profit Performance

As we discussed above, we think the significant unusual expense will make YHI International's statutory profit lower than it would otherwise have been. Based on this observation, we consider it possible that YHI International's statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over 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 want to do dive deeper into YHI International, you'd also look into what risks it is currently facing. When we did our research, we found 4 warning signs for YHI International (2 are concerning!) that we believe deserve your full attention.

Today we've zoomed in on a single data point to better understand the nature of YHI International'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 with significant insider holdings 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.