Texhong International Group Full Year 2024 Earnings: Misses Expectations

Texhong International Group (HKG:2678) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥23.0b (up 1.3% from FY 2023).
• Net income: CN¥553.5m (up from CN¥375.7m loss in FY 2023).
• Profit margin: 2.4% (up from net loss in FY 2023). The move to profitability was primarily driven by lower expenses.
• EPS: CN¥0.60 (up from CN¥0.41 loss in FY 2023).

We've discovered 2 warning signs about Texhong International Group. View them for free.

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

Texhong International Group Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) also missed analyst estimates by 18%.

The primary driver behind last 12 months revenue was the Yarns - China segment contributing a total revenue of CN¥21.8b (95% of total revenue). Notably, cost of sales worth CN¥20.2b amounted to 88% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥1.22b (53% of total expenses). Explore how 2678's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Luxury industry in Hong Kong.

Performance of the Hong Kong Luxury industry.

The company's shares are down 4.9% from a week ago.

Risk Analysis

Before you take the next step you should know about the 2 warning signs for Texhong International Group that we have uncovered.

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