Shanghai Weihong Electronic Technology (SZSE:300508) reported its full-year 2024 results, with revenue reaching CN¥441.3m, a 14% increase from the previous year. However, net income decreased by 22% to CN¥39.5m, resulting in a profit margin of 9.0%, down from 13% in 2023. Earnings per share also decreased to CN¥0.36 from CN¥0.46 in the previous year.
Looking at the trailing 12-month period as of March 31, 2025, the company’s revenue beat analyst expectations by 1.6%, while earnings per share fell short by 58%. The forecast for revenue growth in the next two years is 15% p.a., lower than the expected 18% growth for the Electrical industry in China.
The Chinese Electrical industry has seen a decline in stock prices, with Shanghai Weihong Electronic Technology’s shares down 7.0% from a week ago. It is important to note that there are three warning signs for potential investors to consider before investing in the company:
Firstly, the company’s profit margin has decreased significantly over the past year, indicating that it may be facing increased competition or pressure on pricing in the marketplace. Secondly, earnings per share have fallen below expectations, which could indicate that there are issues with operational efficiency or cost control within the business. Finally, there have been no significant insider transactions recently, which could suggest that management is not confident in the company’s future prospects and may be more likely to sell shares than buy them back at current prices.
For a more comprehensive analysis of Shanghai Weihong Electronic Technology’s valuation, risks, dividends, insider transactions and financial health readers are encouraged to view our free analysis available on Simply Wall St . Our platform provides unbiased commentary based on historical data and analyst forecasts but does not offer financial advice.
It is essential for investors to conduct their research and consider their financial objectives before making any investment decisions
