Skyworth Group Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag

Skyworth Group (HKG:751) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥68.9b (up 29% from FY 2022).
• Net income: CN¥1.07b (up 29% from FY 2022).
• Profit margin: 1.6% (up from 1.5% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: CN¥0.43 (up from CN¥0.32 in FY 2022).

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

Skyworth Group EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 45%.

The primary driver behind last 12 months revenue was the Smart Household Appliances Business segment contributing a total revenue of CN¥31.4b (46% of total revenue). Notably, cost of sales worth CN¥59.4b amounted to 86% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥3.70b (44% of total expenses). Explore how 751's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Consumer Durables industry in Hong Kong.

Performance of the Hong Kong Consumer Durables industry.

The company's shares are up 5.2% from a week ago.

Balance Sheet Analysis

Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on Skyworth Group's balance sheet.

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