Gaush Meditech Full Year 2023 Earnings: EPS Beats Expectations

Gaush Meditech (HKG:2407) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥1.41b (up 12% from FY 2022).
• Net income: CN¥173.5m (up from CN¥349.6m loss in FY 2022).
• Profit margin: 12% (up from net loss in FY 2022). The move to profitability was primarily driven by lower expenses.
• EPS: CN¥1.17 (up from CN¥3.61 loss in FY 2022).

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

Gaush Meditech EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.6%.

The primary driver behind last 12 months revenue was the Distribution segment contributing a total revenue of CN¥808.9m (58% of total revenue). Notably, cost of sales worth CN¥714.6m amounted to 51% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥248.8m (48% of total expenses). Explore how 2407'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 22% growth forecast for the Medical Equipment industry in Hong Kong.

Performance of the Hong Kong Medical Equipment industry.

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

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Gaush Meditech, and understanding these should be part of your investment process.

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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.