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Huitongda Network Co (HKSE:09878) Owner Earnings per Share (TTM) : 0.09 (As of Dec. 2023)


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What is Huitongda Network Co Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Huitongda Network Co's Owner Earnings per Share (TTM) ended in Dec. 2023 was HK$0.09. It's Price-to-Owner-Earnings ratio for today is 300.


The historical rank and industry rank for Huitongda Network Co's Owner Earnings per Share (TTM) or its related term are showing as below:

HKSE:09878' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 290.11   Med: 325.27   Max: 341.21
Current: 296.71


During the past 6 years, the highest Price-to-Owner-Earnings ratio of Huitongda Network Co was 341.21. The lowest was 290.11. And the median was 325.27.


HKSE:09878's Price-to-Owner-Earnings is ranked worse than
96.84% of 1045 companies
in the Software industry
Industry Median: 23.23 vs HKSE:09878: 296.71

Huitongda Network Co's Earnings per Share (Diluted) for the six months ended in Dec. 2023 was HK$0.39. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was HK$0.88. It's PE Ratio ratio for today is 30.86.

Huitongda Network Co's EPS without NRI for the six months ended in Dec. 2023 was HK$0.55. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was HK$1.09. It's PE Ratio without NRI ratio for today is 24.70.


Huitongda Network Co Owner Earnings per Share (TTM) Historical Data

The historical data trend for Huitongda Network Co's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Huitongda Network Co Owner Earnings per Share (TTM) Chart

Huitongda Network Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial - - - -0.26 0.09

Huitongda Network Co Semi-Annual Data
Dec18 Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only - - -0.26 - 0.09

Competitive Comparison of Huitongda Network Co's Owner Earnings per Share (TTM)

For the Software - Application subindustry, Huitongda Network Co's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Huitongda Network Co's Price-to-Owner-Earnings Distribution in the Software Industry

For the Software industry and Technology sector, Huitongda Network Co's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Huitongda Network Co's Price-to-Owner-Earnings falls into.



Huitongda Network Co Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Huitongda Network Co's Owner Earnings per Share (TTM) Calculation:

Last Year Average of Last 5 Years
Net Income 490
Depreciation, Depletion and Amortization 81
Change In Deferred Tax 0
5Y Average of Maintenance Capital Expenditure 32
Change In Working Capital -496
Shares Outstanding (Diluted Average) 562

1. Start with "Net Income" from income statement. Huitongda Network Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$490 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Huitongda Network Co's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2023 was HK$81 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Huitongda Network Co's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2023 was HK$0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = HK$32 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Huitongda Network Co's 5-Year Average Maintenance Capital Expenditure = HK$32 Mil

5. "Change In Working Capital" is from cashflow statement. Huitongda Network Co's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-496 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Huitongda Network Co's Shares Outstanding (Diluted Average) for the months ended in Dec. 2023 was 561.749 Mil.

Huitongda Network Co's Onwer Earnings Per Share for Dec. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 490.314 +80.704+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-31.9238+-496.065)/561.749
=0.09

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=27.00/0.09
=300

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Huitongda Network Co Owner Earnings per Share (TTM) Related Terms

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Huitongda Network Co (HKSE:09878) Business Description

Traded in Other Exchanges
N/A
Address
50 Zhongling Street, Huitongda Building, Jiangsu Province, Nanjing, CHN
Huitongda Network Co Ltd is a transaction and service platform serving corporate customers in China's retail industry, and is committed to providing high-quality goods and services for China's sinking market. In addition, Huitongda also provides store SaaS and merchant solutions to retail stores and channel cooperation customers in the industrial value chain by virtue of its digital capabilities, and provides a stable one-stop supply chain to member retail stores, including providing rich and diverse services on the platform.
Executives
Xu Xiuxian 2101 Beneficial owner
Alibaba Group Holding Limited 2201 Interest of corporation controlled by you
Taobao China Holding Limited 2201 Interest of corporation controlled by you
Taobao Holding Limited 2201 Interest of corporation controlled by you
Zhe Jiang Tian Mao Ji Shu You Xian Gong Si 2201 Interest of corporation controlled by you
Tao Bao Zhong Guo Ruan Jian You Xian Gong Si 2201 Interest of corporation controlled by you
A Li Ba Ba Zhong Guo Wang Luo Ji Shu You Xian Gong Si 2101 Beneficial owner
Wang Jianguo

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