CITIC Full Year 2023 Earnings: Misses Expectations

CITIC (HKG:267) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥882.7b (up 4.5% from FY 2022).
• Net income: CN¥57.6b (down 11% from FY 2022).
• Profit margin: 6.5% (down from 7.7% in FY 2022). The decrease in margin was driven by higher expenses.
• EPS: CN¥1.98 (down from CN¥2.23 in FY 2022).

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

CITIC Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 18%.

The primary driver behind last 12 months revenue was the Comprehensive Financial Services segment contributing a total revenue of CN¥270.2b (31% of total revenue). The most substantial expense, totaling CN¥249.7b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 267's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 7.5% p.a. on average during the next 3 years, while revenues in the Industrials industry in Hong Kong are expected to grow by 1.9%.

Performance of the Hong Kong Industrials industry.

The company's shares are up 5.9% from a week ago.

Risk Analysis

You should learn about the 2 warning signs we've spotted with CITIC (including 1 which makes us a bit uncomfortable).

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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.