AviChina Industry & Technology shines in revenue, EPS falls short.

TLDR:

• AviChina Industry & Technology reported full year 2023 earnings with revenues beating expectations.
• The company’s EPS lags behind analyst estimates due to higher expenses.

AviChina Industry & Technology (SEHK:2357) showed strong revenue growth of 33% from FY 2022, reaching CN¥84.7 billion. However, the profit margin decreased to 2.9% due to higher expenses. The EPS stood at CN¥0.31, slightly up from the previous year but missing analyst estimates by 9.0%.

The market performance in Hong Kong saw a 1.9% increase in the company’s shares over the past week. Looking ahead, revenue growth is forecasted to be 8.9% p.a., below the industry average of 19% in Asia for the Aerospace & Defense sector.

Despite the positive results, there is a warning sign to be mindful of. Valuation analysis is available for investors to determine if AviChina Industry & Technology is potentially over or undervalued. The company is engaged in the development, manufacture, and sale of civil aviation and defense products.