BOE Varitronix Full Year 2023 Earnings: Misses Expectations

BOE Varitronix (HKG:710) Full Year 2023 Results

Key Financial Results

• Revenue: HK$10.8b (flat on FY 2022).
• Net income: HK$475.3m (down 18% from FY 2022).
• Profit margin: 4.4% (down from 5.4% in FY 2022).
• EPS: HK$0.60 (down from HK$0.78 in FY 2022).

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

BOE Varitronix Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 10.0%. Earnings per share (EPS) also missed analyst estimates by 14%.

The primary driver behind last 12 months revenue was the The People's Republic of China (PRC) segment contributing a total revenue of HK$7.91b (74% of total revenue). Notably, cost of sales worth HK$8.79b amounted to 82% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to HK$955.0m (62% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of HK$43.8m. Explore how 710's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in Hong Kong.

Performance of the Hong Kong Electronic industry.

The company's shares are up 14% 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 BOE Varitronix, and understanding it should be part of your investment process.

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