Fangda Special Steel Technology Exceeds Revenue Expectations in Full Year 2023, Falls Short on EPS

Fangda Special Steel Technology Exceeds Revenue Expectations in Full Year 2023, Falls Short on EPS

Fangda Special Steel Technology (SHSE:600507) reported its full-year 2023 results with key financial metrics showing both positive and negative trends. The company’s revenue increased by 14% to CN¥26.5 billion compared to FY 2022. However, net income decreased by 26% to CN¥688.8 million, resulting in a profit margin of 2.6%, down from 4.0% in the previous year. This decline in margin was attributed to higher expenses, leading to an earnings per share (EPS) of CN¥0.29, a decrease from CN¥0.43 in FY 2022.

Analysts were taken by surprise as revenue exceeded expectations by 23%, although EPS fell short by 51%. Looking ahead, Fangda Special Steel Technology is expected to experience a decline in revenue by 7.7% annually over the next two years, contrasting with the projected 11% growth in the Metals and Mining industry in China. Currently, the company’s shares are down 1.7% from the previous week.

Before making any investment decisions, it’s important to consider the risks associated with Fangda Special Steel Technology. A warning sign has been identified by analysts, and it’s crucial to conduct a thorough evaluation of the company’s valuation to determine if it is potentially over or undervalued.

If you have any feedback on this article or concerns about its content, feel free to reach out to us directly or email the editorial team at Simply Wall St. This analysis is based on historical data and forecasts, providing unbiased information for educational purposes only. It is not intended as financial advice and does not consider individual objectives or financial situations. Our goal is to present long-term focused analysis driven by fundamental data, with no current positions in any mentioned stocks.

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