Texhong International Group Full Year 2023 Earnings: EPS Misses Expectations

Texhong International Group (HKG:2678) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥22.7b (down 4.5% from FY 2022).
• Net loss: CN¥375.7m (down by 340% from CN¥156.8m profit in FY 2022).
• CN¥0.41 loss per share (down from CN¥0.17 profit in FY 2022).

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

Texhong International Group EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.8%.

The primary driver behind last 12 months revenue was the Yarns - China segment contributing a total revenue of CN¥21.9b (96% of total revenue). Notably, cost of sales worth CN¥21.3b amounted to 94% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥1.20b (65% of total expenses). Explore how 2678's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Luxury industry in Hong Kong.

Performance of the Hong Kong Luxury industry.

The company's shares are down 3.1% from a week ago.

Risk Analysis

You should always think about risks. Case in point, we've spotted 1 warning sign for Texhong International Group you should be aware of.

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