Bairong Full Year 2024 Earnings: Misses Expectations

Bairong (HKG:6608) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥2.93b (up 9.3% from FY 2023).
• Net income: CN¥266.2m (down 22% from FY 2023).
• Profit margin: 9.1% (down from 13% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: CN¥0.58 (down from CN¥0.72 in FY 2023).

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

Bairong Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 23%.

In the last 12 months, the only revenue segment was Data Processing contributing CN¥2.93b. The largest operating expense was Sales & Marketing costs, amounting to CN¥1.12b (57% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥96.0m. Explore how 6608's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Capital Markets industry in Hong Kong.

Performance of the Hong Kong Capital Markets industry.

The company's shares are up 5.3% from a week ago.

Valuation

It's possible that Bairong could be undervalued with our 6-factor valuation analysis indicating a potential opportunity. Click here to find out what a fair price for the stock might be and where analysts see the share price heading over the next year.

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