China State Construction Development Holdings Full Year 2023 Earnings: Misses Expectations

China State Construction Development Holdings (HKG:830) Full Year 2023 Results

Key Financial Results

• Revenue: HK$8.67b (up 13% from FY 2022).
• Net income: HK$580.4m (up 38% from FY 2022).
• Profit margin: 6.7% (up from 5.5% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: HK$0.26 (up from HK$0.19 in FY 2022).

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

China State Construction Development Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 7.2%. Earnings per share (EPS) also missed analyst estimates by 10%.

The primary driver behind last 12 months revenue was the Facade Contracting Works segment contributing a total revenue of HK$6.66b (77% of total revenue). Notably, cost of sales worth HK$7.69b amounted to 89% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling HK$192.5m 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 830's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Building industry in Hong Kong.

Performance of the Hong Kong Building industry.

The company's shares are up 2.4% from a week ago.

Risk Analysis

You still need to take note of risks, for example - China State Construction Development Holdings has 1 warning sign we think you should be aware of.

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