China's Fibocom Wireless Q3 revenue rises on increased inventory stock-up

Overview

• China wireless module maker's Q3 revenue rose 30% yr/yr

• Net profit attributable to shareholders for Q3 increased 17% yr/yr

• Company completed acquisition of controlling stake in Shenzhen Hangsheng Electronics

Outlook

• Company did not provide specific financial guidance or outlook in the quarterly report

Result Drivers

• INVENTORY STOCK-UP - Co said increased inventory stocking of raw materials contributed to revenue growth

• RAW MATERIAL PURCHASES - Co said higher cash outflows for raw materials reflected increased procurement activity

• DISPOSAL OF SUBSIDIARY - Co said receivables from subsidiary disposal affected asset balances

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy."

• Wall Street's median 12-month price target for Fibocom Wireless Inc. is CNY23.84, about 31% above its October 29 closing price of CNY18.19

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads

• Oct 29 - China's Fortior 9M revenue rises on industrial, automotive demand

• Oct 28 - Fudan Microelectronics Q3 revenue rises on higher downstream demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)