Shaanxi Huaqin Technology Industry Ltd (SHSE:688281) announced its full-year 2023 results, revealing a revenue of CN¥917.5m, a 36% increase from the previous year. Despite this growth, the net income remained flat at CN¥335.0m with a profit margin of 37%, down from 50% in FY 2022 due to higher expenses. The earnings per share (EPS) stood at CN¥2.41.
Despite meeting revenue estimates by only 4%, the company’s overall performance over the past year did not meet analyst expectations. Looking ahead, Shaanxi Huaqin Technology Industry Ltd is forecasting a 28% average annual revenue growth over the next three years, outpacing the expected growth rate of 16% in the Chinese Chemicals industry.
The Chinese Chemicals industry has shown positive performance in recent months, with shares up by 7.2% from the previous week. However, investors should be aware of one warning sign before making any investment decisions: Shaanxi Huaqin Technology Industry Ltd’s valuation may be overvalued based on historical data and analyst forecasts alone.
For a comprehensive analysis on the valuation of Shaanxi Huaqin Technology Industry Ltd, including fair value estimates, risks, dividends, insider transactions, and financial health, investors can access a free analysis provided by Simply Wall St. This commentary is based on historical data and analyst forecasts but should not be considered as financial advice. Investors must evaluate their own objectives and financial situation before making any investment decisions.
