Newborn Town Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag

Newborn Town (HKG:9911) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥3.31b (up 18% from FY 2022).
• Net income: CN¥512.8m (up 294% from FY 2022).
• Profit margin: 16% (up from 4.6% in FY 2022).
• EPS: CN¥0.45 (up from CN¥0.11 in FY 2022).

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

Newborn Town EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) exceeded analyst estimates by 60%.

Looking ahead, revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Software industry in Hong Kong.

Performance of the Hong Kong Software industry.

The company's shares are up 15% from a week ago.

Risk Analysis

We should say that we've discovered 2 warning signs for Newborn Town (1 is a bit unpleasant!) that you should be aware of before investing here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.