Yue Yuen Industrial (Holdings) (HKG:551) Full Year 2023 Results

Key Financial Results

• Revenue: US$7.89b (down 12% from FY 2022).
• Net income: US$274.7m (down 7.3% from FY 2022).
• Profit margin: 3.5% (up from 3.3% in FY 2022). The increase in margin was driven by lower expenses.
• EPS: US$0.17 (down from US$0.18 in FY 2022).

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

Yue Yuen Industrial (Holdings) EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 47%.

The primary driver behind last 12 months revenue was the Manufacturing Business segment contributing a total revenue of US$5.06b (64% of total revenue). Notably, cost of sales worth US$5.96b amounted to 76% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to US$890.2m (54% of total expenses). Explore how 551's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Luxury industry in Hong Kong.

Performance of the Hong Kong Luxury industry.

The company's shares are up 2.7% from a week ago.

Risk Analysis

What about risks? Every company has them, and we've spotted 2 warning signs for Yue Yuen Industrial (Holdings) you should know about.

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