K. Wah International Holdings Full Year 2024 Earnings: EPS Misses Expectations

K. Wah International Holdings (HKG:173) Full Year 2024 Results

Key Financial Results

• Revenue: HK$7.19b (up 18% from FY 2023).
• Net income: HK$335.1m (down 58% from FY 2023).
• Profit margin: 4.7% (down from 13% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: HK$0.11 (down from HK$0.26 in FY 2023).

We've discovered 3 warning signs about K. Wah International Holdings. View them for free.

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

K. Wah International Holdings EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 37%.

The primary driver behind last 12 months revenue was the Property Development - Mainland China segment contributing a total revenue of HK$5.91b (82% of total revenue). Notably, cost of sales worth HK$5.83b amounted to 81% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling HK$758.7m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 173's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 42% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Hong Kong are expected to grow by 4.1%.

Performance of the Hong Kong Real Estate industry.

The company's shares are up 4.1% from a week ago.

Risk Analysis

We should say that we've discovered 3 warning signs for K. Wah International Holdings (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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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.