Fenbi Full Year 2023 Earnings: Misses Expectations

Fenbi (HKG:2469) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥3.02b (up 7.5% from FY 2022).
• Net income: CN¥188.6m (up from CN¥2.09b loss in FY 2022).
• Profit margin: 6.2% (up from net loss in FY 2022). The move to profitability was primarily driven by lower expenses.
• EPS: CN¥0.088 (up from CN¥2.87 loss in FY 2022).

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

Fenbi Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 6.5%. Earnings per share (EPS) also missed analyst estimates by 10%.

The primary driver behind last 12 months revenue was the Tutoring Services segment contributing a total revenue of CN¥2.51b (83% of total revenue). The largest operating expense was Sales & Marketing costs, amounting to CN¥673.9m (49% of total expenses). Explore how 2469's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Consumer Services industry in Hong Kong.

Performance of the Hong Kong Consumer Services industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

Before we wrap up, we've discovered 1 warning sign for Fenbi that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.