Chinasoft International Full Year 2024 Earnings: Misses Expectations

Chinasoft International (HKG:354) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥17.0b (down 1.0% from FY 2023).
• Net income: CN¥512.9m (down 28% from FY 2023).
• Profit margin: 3.0% (down from 4.2% in FY 2023).
• EPS: CN¥0.20 (down from CN¥0.26 in FY 2023).

We've discovered 1 warning sign about Chinasoft International. View them for free.

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

Chinasoft International Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 25%.

The primary driver behind last 12 months revenue was the Technology Professional Services Group segment contributing a total revenue of CN¥14.8b (87% of total revenue). Notably, cost of sales worth CN¥13.2b amounted to 78% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥1.49b (44% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥133.3m. Explore how 354's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the IT industry in Asia.

Performance of the market in Hong Kong.

The company's shares are up 3.2% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for Chinasoft International that you need to be mindful of.

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