We Don’t Think National Electronics Holdings' (HKG:213) Earnings Should Make Shareholders Too Comfortable

Simply Wall St.

Dec 20, 2025

Solid profit numbers didn't seem to be enough to please National Electronics Holdings Limited's (HKG:213) shareholders. We think that they might be concerned about some underlying details that our ...

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We think that they might be concerned about some underlying details that our ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/consumer-durables/hkg-213/national-electronics-holdings-shares/news/we-dont-think-national-electronics-holdings-hkg213-earnings\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>We Don’t Think National Electronics Holdings' (HKG:213) Earnings Should Make Shareholders Too Comfortable</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWe Don’t Think National Electronics Holdings' (HKG:213) Earnings Should Make Shareholders Too Comfortable\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-20 06:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/consumer-durables/hkg-213/national-electronics-holdings-shares/news/we-dont-think-national-electronics-holdings-hkg213-earnings><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Solid profit numbers didn't seem to be enough to please National Electronics Holdings Limited's (HKG:213) shareholders.  We think that they might be concerned about some underlying details that our ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/consumer-durables/hkg-213/national-electronics-holdings-shares/news/we-dont-think-national-electronics-holdings-hkg213-earnings\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00213","symbol_name":"NATIONAL ELEC H","start_time":0,"source_url":"https://simplywall.st/stocks/hk/consumer-durables/hkg-213/national-electronics-holdings-shares/news/we-dont-think-national-electronics-holdings-hkg213-earnings","article_id":"2592139321","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4131000-choice1-main-header/1585186707756"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/consumer-durables/hkg-213/national-electronics-holdings-shares/news/we-dont-think-national-electronics-holdings-hkg213-earnings","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2592139321","pubTimestamp":1766182273,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Solid profit numbers didn't seem to be enough to please National Electronics Holdings Limited's ( HKG:213...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"00213":"NATIONAL ELEC H"},"translate_title":"我们认为国家电子控股（HKG：213）的盈利不会让股东太放心","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00213":1.5},"content_text":"Solid profit numbers didn't seem to be enough to please National Electronics Holdings Limited's (HKG:213) shareholders.  We think that they might be concerned about some underlying details that our analysis found.    This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.SEHK:213 Earnings and Revenue History December 19th 2025  The Impact Of Unusual Items On Profit  For anyone who wants to understand National Electronics Holdings' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from HK$208m worth of unusual items.   While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm.  When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated.  And that's as you'd expect, given these boosts are described as 'unusual'.   We can see that National Electronics Holdings' positive unusual items were quite significant relative to its profit in the year to September 2025.  As a result, we can surmise that the unusual items are making its statutory profit significantly stronger 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 National Electronics Holdings. An Unusual Tax Situation Just as we noted the unusual items, we must inform you that National Electronics Holdings received a tax benefit which contributed HK$22m to the bottom line.   This is of course a bit out of the ordinary, given it is more common for companies to be paying tax than receiving tax benefits!  The receipt of a tax benefit is obviously a good thing, on its own.  However, our data indicates that tax benefits can temporarily boost statutory profit in the year it is booked, but subsequently profit may fall back.  In the likely event the tax benefit is not repeated, we'd expect to see its statutory profit levels drop, at least in the absence of strong growth.  So while we think it's great to receive a tax benefit, it does tend to imply an increased risk that the statutory profit overstates the sustainable earnings power of the business.  Our Take On National Electronics Holdings' Profit Performance In the last year National Electronics Holdings received a tax benefit, which boosted its profit in a way that might not be much more sustainable than turning prime farmland into gas fields.   Furthermore, it also benefitted from a positive unusual item, which boosted the profit result even higher.      For all the reasons mentioned above, we think that, at a glance, National Electronics Holdings' statutory profits could be considered to be low quality, because they are likely to give investors an overly positive impression of the company.     In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved.    Our analysis shows 4 warning signs for National Electronics Holdings (2 are concerning!) and we strongly recommend you look at these before investing.   In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious.   But there are plenty of other ways to inform your opinion of a company.  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.  So you may wish to see this free  collection of companies boasting high return on equity, or  this list of stocks with high insider ownership. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTechValuation is complex, but we're here to simplify it.Discover if National Electronics Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}