Hangzhou Electronic Soul Network Technology (SHSE:603258) reported its full-year 2023 financial results, showing a decline in revenue and net income compared to the previous year. Revenue was CN¥677.1m, down 14% from FY 2022, while net income was CN¥56.8m, down 72% from FY 2022. The profit margin also decreased to 8.4% from 25% in FY 2022, with earnings per share (EPS) dropping to CN¥0.23 from CN¥0.83 in FY 2022.
The company’s performance in the Chinese entertainment industry is reflected in its financial results, with revenue and earnings missing analyst expectations. Revenue missed estimates by 21%, and EPS missed by 81%. Looking ahead, Hangzhou Electronic Soul Network Technology is forecasted to have a growth rate of 17% annually over the next two years, which outpaces the industry growth rate of 17%. However, there are risks that investors should be aware of before making investment decisions.
To determine if the company is over or undervalued, it is recommended to conduct a comprehensive analysis that includes fair value estimates, risks, dividends, insider transactions, and financial health. Additionally, it is important to consider other factors such as market trends and competition within the entertainment industry.
This article provides general commentary based on historical data and analyst forecasts using an unbiased methodology. It is not intended as financial advice and does not take into account individual objectives or financial situations. The analysis presented may not incorporate the latest company announcements or qualitative information.
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