Himile Mechanical beats EPS, lags in revenue for FY 2023.

TLDR:

• Himile Mechanical Science and Technology (Shandong) reported strong full year 2023 earnings, with EPS beating expectations and revenues increasing.
• The company’s profit margin improved to 23% due to higher revenue.

Himile Mechanical Science and Technology (Shandong) (SZSE:002595) released its full year 2023 results, showing a revenue of CN¥7.17b, a 7.9% increase from the previous year. Net income also grew by 34% to CN¥1.61b, with an improved profit margin of 23%. The company reported an EPS of CN¥2.03, surpassing analyst estimates. However, revenues fell short of expectations.

The Chinese Machinery industry is forecasted to see a 19% growth in the next 2 years, while Himile Mechanical Science and Technology (Shandong) is expected to grow by 14% on average. Shares of the company have increased by 1.1% in the past week.

Risk Analysis

Although Himile Mechanical Science and Technology (Shandong) has shown positive results, there are still risks involved. Investors should be aware of potential warning signs. Valuation analysis is recommended to determine if the stock is over or undervalued.

Overall, the company has a strong balance sheet and pays dividends, making it an attractive option for investors. However, it is essential to conduct thorough research and analysis before making investment decisions.