Weaver Network Technology (SHSE:603039) reported its full-year 2023 financial results, showing a revenue of CN¥2.39b, which was a 2.6% increase from FY 2022. However, the net income was CN¥178.7m, a decrease of 20% from the previous year. The profit margin also declined to 7.5% from 9.6% in FY 2022, and the earnings per share (EPS) dropped to CN¥0.69 from CN¥0.86 in FY 2022.
Despite the revenue falling short of analyst estimates by 5.8%, the EPS beat expectations by 29%. Looking ahead, Weaver Network Technology forecasts a revenue growth of 18% per annum on average for the next three years, slightly lower than the 22% growth forecast for the Software industry in China.
The Chinese Software industry has impacted Weaver Network Technology’s shares, which are down 9.0% from a week ago. Before making any decisions, it’s important to consider the potential risks associated with investing in the company. One warning sign for Weaver Network Technology has been identified, and it’s crucial to understand the valuation to determine if the stock is over or undervalued.
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