BBUC Latest Report

Brookfield Business's Financial Performance

Brookfield Business (stock code: BBUC) reported a total operating revenue of US$2.209 billion as of December 31, 2024, up 8.34% from US$1.946 billion in 2023. This growth indicates an improvement in the company's operating revenue, although overall profitability remains challenged.

Key Financial Data

1. Growth in Total Operating Revenue: The total operating revenue in 2024 was US$2.209 billion, up US$263 million from US$1.946 billion in 2023, reflecting an improvement in the company's sales capacity in the market.

2. Impact of Market Demand Changes on Sales: After experiencing fluctuations in the overall market environment, the market gradually recovered in 2024, with some cities issuing consumption vouchers to promote consumption, leading to an increase in market activity.

3. Optimization of Product or Service Portfolio: Brookfield Business launched a series of cultural and creative products in 2024 themed around "Jifeng," "Baohao," and "Feifei" cartoon characters, increasing the proportion of related products in total sales, accounting for 35%.

4. Adjustments in Pricing Strategy: The company adjusted the base price of tower products, with the discount rate increased from 2.4% while making corresponding adjustments to shared discounts, which is expected to boost the sharing rate and drive revenue growth.

5. New Customer Development and Sales Channel Expansion: The company may have successfully developed new customers and markets, expanded sales channels, and thus driven revenue growth.

Peer Comparison

1. Industry-wide Analysis: When analyzing Brookfield Business's total operating revenue, the overall performance of the industry needs to be considered. According to the report from Rongxin Intelligent, the revenue of companies in the same industry in the first half of 2024 grew by 50.86% year-on-year, indicating a recovery in market demand. Although some companies still face slow growth, the overall industry shows signs of recovery.

2. Peer Evaluation Analysis: Brookfield Business's revenue growth rate of 8.34% is at a medium level in the same industry. Although it is lower than some rapidly growing companies, the company's performance is still noteworthy in the context of the industry's overall recovery.

Conclusion

Brookfield Business achieved significant growth in its total operating revenue in 2024, mainly driven by the recovery of market demand, optimization of product portfolio, and adjustments in pricing strategy. Although overall profitability remains under pressure, the company's proactive adjustments and market adaptability lay a foundation for future growth.

Opportunities

1. Gradual recovery of market demand may further drive revenue growth.

2. Diversification of product portfolio and launch of new products are expected to attract more consumers and increase market share.

3. Flexible adjustments in pricing strategy will help the company gain an advantage in competition and improve overall profitability.

Risks

1. Overall profitability faces pressure, which may affect the company's long-term development.

2. Intensified industry competition may lead to a loss of market share and squeezed profits.

3. Volatility in market demand still exists, which may have an uncertain impact on revenue growth.