Jinwu Financial News | According to the Sino-Thai International Development Research Report, Fangda Holdings (01521)'s revenue in 2023 increased 3.8% year on year to US$260 million, gross profit fell 12.1% year on year to US$78.39 million, and shareholders' net profit fell sharply by 58.0% year on year to US$10.81 million. The bank indicated that performance fell short of expectations.
As the 2023 revenue and new orders were worse than expected, the bank lowered the 2024-25E revenue forecast by 15.3% and 18.9% respectively. Since the 2023 shareholders' net profit fell short of expectations, and it will take some time for profit margins to recover according to the current new order situation, the bank lowered the company's 2024-25E shareholders' net profit forecast by 27.8% and 32.6%, respectively. In addition to lowering the profit forecast, considering that the company's revenue growth rate is difficult to recover sharply in the short term, the bank adjusted the DCF sustainable growth rate assumption to 3.0% and the target price to HK$1.50 to maintain a “neutral” rating.