Shenzhen International Holdings Full Year 2023 Earnings: Misses Expectations

Shenzhen International Holdings (HKG:152) Full Year 2023 Results

Key Financial Results

• Revenue: HK$20.5b (up 32% from FY 2022).
• Net income: HK$1.90b (up 52% from FY 2022).
• Profit margin: 9.3% (up from 8.1% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: HK$0.80 (up from HK$0.54 in FY 2022).

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

Shenzhen International Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 5.8%. Earnings per share (EPS) also missed analyst estimates by 20%.

The primary driver behind last 12 months revenue was the Toll Roads and General-Environmental Protection Business segment contributing a total revenue of HK$10.3b (50% of total revenue). Notably, cost of sales worth HK$13.0b amounted to 63% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling HK$4.23b 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 152's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 3.8% growth forecast for the Infrastructure industry in Hong Kong.

Performance of the Hong Kong Infrastructure industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 2 warning signs for Shenzhen International Holdings (1 is concerning!) that you need to be mindful of.

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