Neusoft Education Technology (HKG:9616) Full Year 2023 Results
Key Financial Results
- Revenue: CN¥1.81b (up 17% from FY 2022).
- Net income: CN¥429.5m (up 12% from FY 2022).
- Profit margin: 24% (down from 25% in FY 2022). The decrease in margin was driven by higher expenses.
- EPS: CN¥0.67 (up from CN¥0.58 in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Neusoft Education Technology Meets Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations.
In the last 12 months, the only revenue segment was Providing Higher Education Services contributing CN¥1.81b. Notably, cost of sales worth CN¥941.0m amounted to 52% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling CN¥235.1m 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 9616’s revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Consumer Services industry in Hong Kong.
Performance of the Hong Kong Consumer Services industry.
The company’s shares are down 9.2% from a week ago.
Risk Analysis
Be aware that Neusoft Education Technology is showing 2 warning signs in our investment analysis that you should know about…
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