SITC International Holdings Full Year 2023 Earnings: Misses Expectations

SITC International Holdings (HKG:1308) Full Year 2023 Results

Key Financial Results

• Revenue: US$2.43b (down 41% from FY 2022).
• Net income: US$531.4m (down 73% from FY 2022).
• Profit margin: 22% (down from 47% in FY 2022). The decrease in margin was driven by lower revenue.
• EPS: US$0.20 (down from US$0.73 in FY 2022).

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

SITC International Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 4.1%. Earnings per share (EPS) also missed analyst estimates by 15%.

The primary driver behind last 12 months revenue was the Greater China segment contributing a total revenue of US$942.5m (39% of total revenue). Notably, cost of sales worth US$1.81b amounted to 74% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$136.0m (97% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of US$48.5m. Explore how 1308's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 5.7% decline forecast for the Shipping industry in Hong Kong.

Performance of the Hong Kong Shipping industry.

The company's shares are up 9.9% from a week ago.

Risk Analysis

You should learn about the 2 warning signs we've spotted with SITC International Holdings.

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