Stock Analysis

Towngas Smart Energy Full Year 2022 Earnings: Revenues Beat Expectations, EPS Lags

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Towngas Smart Energy (HKG:1083) Full Year 2022 Results

Key Financial Results

  • Revenue: HK$20.1b (up 17% from FY 2021).
  • Net income: HK$964.9m (down 23% from FY 2021).
  • Profit margin: 4.8% (down from 7.3% in FY 2021). The decrease in margin was driven by higher expenses.
  • EPS: HK$0.30 (down from HK$0.41 in FY 2021).
SEHK:1083 Earnings and Revenue Growth March 17th 2023

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

Towngas Smart Energy Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 68%.

Looking ahead, revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Gas Utilities industry in Hong Kong.

Performance of the Hong Kong Gas Utilities industry.

The company's shares are down 14% from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Towngas Smart Energy (at least 1 which is a bit unpleasant), and understanding them should be part of your investment process.

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