Grand Venture Technology Limited (SGX:JLB) recently reported strong earnings, with a tax benefit of S$2.1m standing out. However, experts warn that this tax benefit, while positive in the short term, may not be sustainable and could lead to a drop in profitability in the future. The company’s focus on statutory profit may be masking its true earnings power.
While Grand Venture Technology’s EPS growth has been impressive, there are concerns about the reliance on tax benefits to boost profits. Analysts recommend looking deeper into the company’s financials to get a clearer picture of its potential. Simply Wall St urges investors to consider all factors when evaluating a company’s profitability, including return on equity and insider ownership.
This analysis by Simply Wall St is based on historical data and analyst forecasts, and is intended to provide unbiased commentary rather than financial advice. Investors are encouraged to conduct their own research and consult with financial advisors before making any decisions. For more information on Grand Venture Technology and other companies, visit Simply Wall St’s website.
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