SMART SHARE GLOBAL Reports Third Quarter Earnings Results with Total Revenue Down 20.5% Y-o-Y
January 4, 2023
Earnings report
SMART SHARE GLOBAL ($NASDAQ:EM), a leading provider of financial services, reported their earnings results for the third quarter of FY2022, as of September 30 2022. The company delivered total revenue of CNY -95.8 million, representing a 20.5% decrease year-over-year. Net income was CNY 815.0 million, 12.4% lower than the same period in the previous year. Despite the overall downward trend in the third quarter, the company highlighted several positives in its earnings report. This is in stark contrast to the overall China A-share market, which fell by more than 10% over the same time period.
Despite the overall decrease in revenue and net income, SMART SHARE GLOBAL remains a strong financial services provider with strong growth prospects. The company has continued to invest in new products and services such as cloud computing and artificial intelligence, as well as expanding its presence in overseas markets. With these investments, the company looks well-positioned to capitalize on future opportunities and continue to deliver strong results for shareholders in the quarters ahead.
Stock Price
On Tuesday, SMART SHARE GLOBAL released its third quarter earnings report with total revenue down 20.5% year-over-year. This news sent shockwaves through the market, causing the stock price to plunge 11.9% from its last closing price of $1.4, opening at $1.5 and closing at $1.2. With this news, analysts are speculating that SMART SHARE GLOBAL may be experiencing a downturn in their business. The company has yet to provide any official statement on the matter, though investors are growing increasingly concerned about the future of SMART SHARE GLOBAL and its ability to remain profitable in this turbulent economic climate. Some experts believe that the drop in revenue may be a result of the ongoing pandemic, which has caused a severe disruption in global supply chains and financial markets.
It is likely that SMART SHARE GLOBAL’s performance will remain weak in the next quarter unless they take action to adjust to the new conditions. For now, investors are advised to remain cautious when it comes to investing in SMART SHARE GLOBAL. As the company continues to report lower earnings and revenue, it is clear that they must make changes in order to remain competitive and profitable in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EM. More…
| Total Revenues | Net Income | Net Margin |
| 3.08k | -445.17 | -14.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EM. More…
| Operations | Investing | Financing |
| 226.78 | -1.71k | 1.56k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.44k | 1.44k | 11.86 |
Key Ratios Snapshot
Some of the financial key ratios for EM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -13.3% |
| FCF Margin | ROE | ROA |
| -8.0% | -8.5% | -5.8% |
VI Analysis
Investors looking for long-term potential may find SMART SHARE GLOBAL an attractive option. The company has been assessed by VI app and rated as strong in asset, medium in growth, profitability and weak in dividend. This shows that the company has some potential for growth while at the same time being able to provide some returns from its assets. With a health score of 8/10, SMART SHARE GLOBAL is capable of safely riding out any crisis without the risk of bankruptcy. It is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Such companies are attractive to investors who want to invest for the long term, as they offer a balance between potential upside and steady returns. The company’s fundamentals are an important factor when it comes to determining its long-term potential. SMART SHARE GLOBAL’s strong asset base, combined with its moderate growth, makes it an attractive option for investors who are looking for a balanced approach to investing. Meanwhile, those looking for higher returns may be interested in the company’s weak dividend score, as it may offer more upside potential than other companies. Overall, SMART SHARE GLOBAL is an attractive option for investors looking for long-term potential and a balanced approach to investing. Its strong asset base, moderate growth and weak dividend score make it an appealing choice for those who want to invest for the long term. More…
VI Peers
It has established itself as a top player in the market, competing with other well-known companies such as Mu Global Holding Ltd, LE Lavoir Ltd, and Heian Ceremony Service Co Ltd. All of these companies offer unique products and services that help businesses achieve success and growth.
– Mu Global Holding Ltd ($OTCPK:MUGH)
Global Holding Ltd is a global conglomerate with interests in a variety of industries, including manufacturing, technology, real estate, and healthcare. The company has a market capitalization of 71.32M as of 2022, indicating that it has a relatively low market value compared to its peers. It has a Return on Equity of 43.14%, which is indicative of the company’s ability to generate profits from its investments. This indicates that Global Holding is a well-managed company that is able to generate a steady stream of profits from its various investments. The company’s diverse portfolio and strong financial performance make it an attractive investment for many investors.
– LE Lavoir Ltd ($BSE:539814)
Lavoir Ltd is a clothing retailer based in the United Kingdom. The company has a market cap of 106.27M as of 2022 and a Return on Equity of -1.0%. This indicates that the company is not performing well in terms of generating returns for its shareholders. Lavoir Ltd may need to implement strategies to improve its profitability, such as increasing its efficiency or expanding into new markets. Additionally, the company should focus on improving its capital structure and reducing its debt in order to create more value for shareholders.
– Heian Ceremony Service Co Ltd ($TSE:2344)
Heian Ceremony Service Co Ltd is a Japanese ceremony service provider that specializes in providing wedding and other ceremonial services. Founded in 1884, the company has a market capitalization of 8.93 billion as of 2022, making it one of the largest ceremony service providers in Japan. Heian Ceremony Service Co Ltd also has a Return on Equity of 4.33%, indicating that it is able to generate returns on its shareholders’ investments. The company has a wide range of services, including wedding ceremonies, funerals, memorial services, and more. Heian Ceremony Service Co Ltd is renowned for its professionalism and high quality of service, and is committed to providing its customers with a memorable experience.
Summary
Investors in SMART SHARE GLOBAL have recently been presented with mixed news, as the company reported its earnings results for the third quarter of FY2022. While total revenue was reported at CNY -95.8 million, representing a 20.5% decrease year-over-year, net income was still recorded at CNY 815.0 million, a 12.4% decrease from the same period in the previous year. As expected, the stock price was affected by this news, moving down the same day. From an investing perspective, it is important to consider the underlying factors behind this decrease in earnings. The company may be facing challenges due to macroeconomic conditions such as a slow-down in consumer spending or rising competition.
It is also important to examine the company’s balance sheet and cash flow position to determine if it has enough resources to weather these volatile times. The outlook for SMART SHARE GLOBAL may be uncertain at this time, but investors should bear in mind that such volatility is common in the stock market and that this does not necessarily imply that the company is in financial trouble. If the company can address the current challenges and regain its footing, there is potential for growth and value creation for shareholders. Therefore, investors should focus on understanding the underlying fundamentals of the company and use this information to make an informed decision on whether to invest in this stock.
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