China Overseas Property Holdings Full Year 2023 Earnings: Misses Expectations

China Overseas Property Holdings (HKG:2669) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥13.1b (up 20% from FY 2022).
• Net income: CN¥1.34b (up 23% from FY 2022).
• Profit margin: 10% (in line with FY 2022).
• EPS: CN¥0.41 (up from CN¥0.33 in FY 2022).

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

China Overseas Property Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 12%.

The primary driver behind last 12 months revenue was the Property Management Services segment contributing a total revenue of CN¥9.56b (73% of total revenue). Notably, cost of sales worth CN¥10.9b amounted to 84% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥452.1m (57% of total expenses). Explore how 2669's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Real Estate industry in Hong Kong.

Performance of the Hong Kong Real Estate industry.

The company's shares are up 12% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with China Overseas Property Holdings, and understanding it should be part of your investment process.

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