West China Cement Full Year 2023 Earnings: Revenues Beat Expectations, EPS Lags

West China Cement (HKG:2233) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥9.02b (up 6.3% from FY 2022).
• Net income: CN¥421.3m (down 65% from FY 2022).
• Profit margin: 4.7% (down from 14% in FY 2022).
• EPS: CN¥0.077 (down from CN¥0.22 in FY 2022).

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

West China Cement Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 3.3%. Earnings per share (EPS) missed analyst estimates by 61%.

The primary driver behind last 12 months revenue was the The PRC segment contributing a total revenue of CN¥6.31b (70% of total revenue). Notably, cost of sales worth CN¥6.56b amounted to 73% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling CN¥891.4m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 2233's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 1.6% growth forecast for the Basic Materials industry in Hong Kong.

Performance of the Hong Kong Basic Materials industry.

The company's shares are down 3.4% from a week ago.

Risk Analysis

We should say that we've discovered 3 warning signs for West China Cement (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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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.