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.
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