Huitongda Network Full Year 2024 Earnings: Misses Expectations

Huitongda Network (HKG:9878) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥60.1b (down 27% from FY 2023).
• Net income: CN¥269.7m (down 40% from FY 2023).
• Profit margin: 0.4% (down from 0.5% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: CN¥0.49 (down from CN¥0.80 in FY 2023).

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

Huitongda Network Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 26%. Earnings per share (EPS) also missed analyst estimates by 44%.

The primary driver behind last 12 months revenue was the Commerce Business segment contributing a total revenue of CN¥59.3b (99% of total revenue). Notably, cost of sales worth CN¥57.8b amounted to 96% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥1.08b (53% of total expenses). Explore how 9878's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Trade Distributors industry in Asia.

Performance of the market in Hong Kong.

The company's share price is broadly unchanged from a week ago.

Balance Sheet Analysis

Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on Huitongda Network's balance sheet.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.