China Everbright Environment Group Full Year 2023 Earnings: EPS Beats Expectations

China Everbright Environment Group (HKG:257) Full Year 2023 Results

Key Financial Results

• Revenue: HK$32.1b (down 14% from FY 2022).
• Net income: HK$4.43b (down 3.8% from FY 2022).
• Profit margin: 14% (up from 12% in FY 2022). The increase in margin was driven by lower expenses.
• EPS: HK$0.72 (down from HK$0.75 in FY 2022).

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

China Everbright Environment Group EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.3%.

The primary driver behind last 12 months revenue was the Environmental Energy Project Construction and Operation segment contributing a total revenue of HK$17.5b (54% of total revenue). Notably, cost of sales worth HK$18.3b amounted to 57% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling HK$6.67b 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 257's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 7.3% growth forecast for the Commercial Services industry in Hong Kong.

Performance of the Hong Kong Commercial Services industry.

The company's shares are down 2.3% from a week ago.

Risk Analysis

What about risks? Every company has them, and we've spotted 2 warning signs for China Everbright Environment Group (of which 1 is a bit unpleasant!) you should know about.

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