Second quarter 2021 earnings released: EPS CN¥0.23 (vs CN¥0.20 in 2Q 2020)
The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker.Second quarter 2021 results:
- Revenue: CN¥3.98b (down 17% from 2Q 2020).
- Net income: CN¥877.2m (up 13% from 2Q 2020).
- Profit margin: 22% (up from 16% in 2Q 2020). The increase in margin was driven by lower expenses.
Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings.
Consensus forecasts updated
The consensus outlook for 2021 has been updated.
- 2021 revenue forecast increased from CN¥18.7b to CN¥21.2b.
- EPS estimate unchanged at CN¥0.75.
- Net income forecast to grow 6.6% next year vs 22% growth forecast for Machinery industry in Singapore.
- Consensus price target up from S$1.55 to S$1.65.
- Share price rose 9.5% to S$1.50 over the past week.