On May 13th, 2024, Chicony Power Technology (TWSE:6412) reported its first quarter financial results. The company recorded a revenue of NT$8.05 billion, which was a decrease of 3.0% from the same quarter in the previous year. However, the net income increased by 17% to NT$680.9 million, driven by lower expenses. The profit margin also improved to 8.5%, up from 7.0% in the first quarter of 2023. Earnings per share (EPS) saw an increase to NT$1.70 from NT$1.47 in the same quarter of the previous year.
Despite revenue falling short of analyst estimates by 4.1%, EPS exceeded expectations by 1.0%. Looking ahead, Chicony Power Technology is forecasted to experience a 14% annual revenue growth over the next two years, compared to a 16% growth forecast for the Electrical industry in Taiwan as a whole. However, shares in this sector have been declining by 3.5% from the previous week, indicating that investors are cautious about the industry’s performance as a whole.
As investors analyze Chicony Power Technology further, there is one warning sign that should be taken into account: it’s important to conduct a comprehensive valuation analysis to determine whether or not the company is currently over or undervalued based on factors such as fair value estimates, risks and warnings, dividends, insider transactions and financial health indicators such as debt-to-equity ratio or current ratio among others that can affect its long term performance and sustainability . Feedback on this article or concerns about its content can be directed to [editorial-team@simplywallst](mailto:editorial-team@simplywallst). It’s worth noting that this article produced by Simply Wall St is general in nature and should not be construed as financial advice – it is based on historical data and analyst predictions and may not include any recent price-sensitive company announcements or qualitative information
