Zhejiang Chengchang Technology’s Full Year 2023 Earnings Fall Below Expectations


Zhejiang Chengchang Technology’s Full Year 2023 Earnings Fall Below Expectations

Zhejiang Chengchang Technology (SZSE:001270) reported its full-year 2023 results, showing a revenue of CN¥287.4m, which is a 3.4% increase from the previous year. However, the net income decreased by 40% to CN¥79.7m, resulting in a profit margin of 28%, down from 48% in the previous year. The decrease in margin was attributed to higher expenses, leading to an earnings per share (EPS) of CN¥0.51, down from CN¥0.95 in the previous year.

Analysts were disappointed as both revenue and earnings fell short of expectations, with revenue missing estimates by 30% and EPS missing estimates by 55%. Despite this, the company forecasts a 38% annual revenue growth over the next 3 years, outpacing the 23% growth forecast for the Semiconductor industry in China. The share price of Zhejiang Chengchang Technology has increased by 3.7% in the past week.

It’s important to consider risks when investing in any company. Zhejiang Chengchang Technology has been identified with 2 warning signs, one of which may cause concern for investors. If you’re interested in a comprehensive analysis of the company, including valuation, risks, dividends, insider transactions, and financial health, you can access our free analysis.

At Simply Wall St, we provide unbiased commentary based on historical data and analyst forecasts. Our articles are not intended to offer financial advice, but rather to offer long-term focused analysis driven by fundamental data. It’s important to note that our analysis may not include the most recent company announcements or qualitative information. Simply Wall St does not hold positions in any stocks mentioned in the article.

Leave a Reply