Tongfu MicroelectronicsLtd Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag

Tongfu MicroelectronicsLtd (SZSE:002156) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥22.3b (up 3.9% from FY 2022).
• Net income: CN¥169.4m (down 66% from FY 2022).
• Profit margin: 0.8% (down from 2.3% in FY 2022).
• EPS: CN¥0.11 (down from CN¥0.37 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Tongfu MicroelectronicsLtd EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) exceeded analyst estimates by 31%.

The primary driver behind last 12 months revenue was the Overseas segment contributing a total revenue of CN¥19.2b (86% of total revenue). Notably, cost of sales worth CN¥19.7b amounted to 88% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Research & Development (R&D) costs, amounting to CN¥1.16b (48% of total expenses). Explore how 002156's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Semiconductor industry in China.

Performance of the Chinese Semiconductor industry.

The company's shares are down 8.9% from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Tongfu MicroelectronicsLtd (at least 1 which makes us a bit uncomfortable), and understanding them should be part of your investment process.

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