Shede Spirits (SHSE:600702) has disclosed its financial results for the full year 2023, revealing both gains and setbacks in key financial metrics compared to the previous fiscal year.
Key Financial Highlights:
Revenue surged to CN¥7.08 billion, marking a notable 17% increase from the figures reported in the fiscal year 2022.
Net income experienced a moderate uptick, reaching CN¥1.77 billion, up by 5.1% from the previous fiscal year.
However, the profit margin witnessed a decline, standing at 25% as opposed to 28% in the fiscal year 2022. This dip was primarily attributed to escalated expenses.
Earnings per share (EPS) stood at CN¥5.35, demonstrating an increase from CN¥5.10 reported in the fiscal year 2022.
The above figures represent the performance over the trailing 12 month (TTM) period.
EPS Falls Short of Expectations:
Despite revenue aligning with analyst predictions, the earnings per share (EPS) failed to meet expectations, falling short by 3.2%.
Future Outlook:
Looking forward, the company anticipates a 17% annual growth in revenue on average over the next three years, outpacing the projected 14% growth for the Beverage industry in China.
Performance of the Chinese Beverage Industry:
Shede Spirits’ shares have experienced a slight decline of 1.2% compared to the previous week.
Risk Analysis:
Caution is advised as investors should be mindful of potential risks. Notably, two warning signs have been identified for Shede Spirits, one of which may pose significant concerns.
