| The disclosure of corporate earnings information directly affects the investment risk of investors.For investors,their mastery of the earnings information of listed companies is helpful for them to grasp the current market environment and seize investment opportunities.In the capital market,food condiments and other consumer sectors were once wildly pursued by the market,and,Haitian,which has a name of “Maotai of soy sauce industry”,was the focus of investors’ attention,and its stock price once exceeded 200 yuan.Relying onbottles of condiments,Haitian has achieved a market value of more than 600 billion,surpassing Sinopec,an oil giant,and becoming the 10 th largest listed company on the A-share market.However,the reality is that the competition in the condiment industry is extremely fierce.There still remains plenty of questions.For instance,how can a small soy sauce factory become a rich factory? Is there a good quality of earnings support behind the repeated record in the stock price of Haitian? Both investors and listed companies themselves need to know the real quality of corporate profit in time,which is of great practical significance to promote the improvement of the quality of listed companies’ earnings and the healthy development of capital market.Taking Haitian as the case study object,this paper explores closely the status of its earnings quality,deeply looks for the key reasons that affect the earnings quality of Haitian,and finds out the advantages and disadvantages of the earnings quality of Haitian,in order to provide beneficial enlightenment for the listed companies in the same industry to improve the earnings quality.In order to establish a Haitian earnings quality comprehensive evaluation model,this paper firstly combs the relevant literature on the quality of earnings as well as the theoretical basis,And according to the construction principles of earnings quality evaluation index system combined with the characteristics of the industry and business characteristics,to select suitable the earnings quality evaluation index system that suitable for the case enterprise.Then,using the four-dimensional earnings quality evaluation system constructed by Wen Subin(2016)for reference,12 earnings quality evaluation indicators are selected from the four dimensions of revenue profitability,structure,sustainability and stability.At the same time,the Entropy method of objective weighting is combined with the TOPSIS method of rigorous multi-attribute decision-making to realize the establishment of the model.Using the model,this paper makes a comprehensive evaluation on the earnings quality of Haitian from two angles of vertical analysis and horizontal comparison.Vertically,the quality index of Haitian from2015 to 2019 is calculated to judge the change trend of its earnings quality,and the earnings quality of Haitian is analyzed and evaluated from four dimensions,namely,revenue profitability,structure,sustainability and stability.Horizontally,four seasoning listed companies,Zhongju High-tech,Qianhe Flavor,Hengshun Vinegar and Lotus Health,are selected as the research objects of horizontal comparative analysis of earnings quality of Haitian.By calculating the earnings quality index of four comparative listed companies in the same industry from 2015 to 2019,and making a horizontal comparison between the the profit quality evaluation score of Haitian and the four listed companies in the same industry in the same period,the earnings quality situation of Haitian is further analyzed.The study found that the earnings quality of haitian increased year by year from 2015 to 2018,and although it declined slightly in 2019,the overall earnings quality of Hai Tian was at the leading level in the industry.Among the five condiment listed companies selected in this paper,the earnings quality index of Haitian has always been in the first place,in terms of the four evaluation dimensions reflecting the earnings quality,Haitian has always been at a high level in terms of the revenue profitability,structure and stability of the industry,but its profit continued poor performance.If Haitian wants to maintain a high level of earnings quality continuously,it should improve the sustainability of its main business profit and enhance its growth ability in the future.Based on the index weight assignment principle of entropy weight method,this paper selects the evaluation indexes that have a great impact on the earnings quality of Haitian,and it is found that the cash cycle index in the dimension of its revenue profiltability,the gross profit rate index of profit structure dimension and the main business profit growth rate index of profit sustainability dimension are the key indexes that affect the earnings quality of Haitian.This paper holds that the long-term abundant cash flow of Haitian is the key factor to ensure its high level of its revenue profitability;the key factors of the strong profit-quality structure of Haitian are the high gross profit and low cost of its main business;and the key influencing factors of the poor sustainability of Haitian earnings quality are due to the slowing down of its main business and the poor distribution of core products,leading to the weak sustainability of profit growth.Based on the above mentioned cash cycle index,gross profit rate index and main profit growth rate index which have an important impact on the earnings quality of Haitian,this paper further analyzes the advantages and disadvantages of the earnings quality of Haitian on the basis of decomposion of each index layer by layer.The results show that :(1)the essential reason that affects the profitability of Haitian is the sales mode of payment before delivery.Through the construction of nationwide sales channels,Haitian manages dealers effectively and accurately,forms the brand advantage and product scale effect,and then has a strong voice over upstream and downstream enterprises,and realizes the settlement method of payment before delivery.It has brought the market advantages of low receivables,high prepayment and high payables to itself,and guaranteed its abundant cash flow and effectively improved the profitability.Long-term abundant cash flow has a significant positive impact on the earnings quality of Haitian.(2)The essential reason that affectsg the earnings quality structure of Haitian lies in the effective cost and expense control of the enterprise.Through adopting intelligent production,Haitian has reduced the labor cost and manufacturing cost of products,and improved the gross profit margin of its business,thus effectively improving the profit structure and enhancing the earnings quality of Haitian.(3)The key factor affecting the sustainability of earnings quality of Haitian is the poor layout of core products.With the aggravation of the competition in the condiment market,the middle and low-end soy sauce products of Haitian seem to have reached the bottleneck of its development.The slowdown in the revenue growth of its main business has led to large fluctuation in the profit growth rate of Haitian owners,which has reduced the profit sustainability of Haitian and had a negative impact on the earnings quality of Haitian. |
PDF Full Text Request