Shares of China State Construction International Holdings (03311.HK) plummeted 5.02% in intraday trading, following the release of the company's annual financial results which fell short of market expectations.
The construction giant reported a revenue of HKD 115,107 million for the fiscal year, significantly missing the analyst estimates of HKD 128,425 million. Despite the revenue shortfall, the company managed to post a slight increase in net income attributable to shareholders, which rose to HKD 9,361 million. Basic earnings per share also saw a modest improvement to HKD 1.86.
While the company declared a final dividend of HK28.5 cents per share, investors seemed to focus on the disappointing top-line performance. The substantial gap between actual revenue and market expectations, coupled with a mere 1.2% year-over-year revenue growth, likely fueled concerns about the company's growth prospects in a challenging economic environment. This negative sentiment appears to have overshadowed the marginal improvements in profitability, leading to the sharp decline in stock price.
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