CMPO Latest Report

DataVisThursday, Mar 6, 2025 4:40 am ET

1min read

Financial Performance

CompoSecure's total operating revenue reached RMB100,859,000 as of December 31, 2024, up 0.86% from RMB99,900,000 as of December 31, 2023. However, the company's net profit was significantly in loss, reaching -48,358,000 yuan, indicating significant pressure in cost control and profitability.

Key Financial Data

1. The slight increase in total operating revenue reflects the company's competitiveness in the market, but the growth is not enough to offset the cost increase.

2. Sales costs rose to RMB48,325,000, up 2.56%, possibly due to the rise in raw material prices or low production efficiency.

3. Marketing, sales, and management expenses significantly increased to RMB36,932,000, up 65.15%, indicating increased spending in market promotion and management.

4. EBIT was significantly in loss, decreasing to -26,046,000 yuan, indicating challenges in core businesses.

5. In terms of financial expenses, interest expenses decreased from RMB27,525,000 to RMB20,176,000, although there was a decrease, overall profitability was affected, reflecting debt management and liquidity pressure.

Peer Comparison

1. Industry-wide analysis: The overall industry faces challenges such as rising costs and intensified competition, with many companies struggling to control costs and optimize expenses to cope with the economic environment. Although CompoSecure's total operating revenue grew, overall profitability was affected.

2. Peer evaluation analysis: Compared with other companies in the same industry, CompoSecure's total operating revenue growth was smaller and its net profit was negative, indicating a disadvantage in market competition. Many competitors performed better in cost control and market expansion, with more ideal profitability and revenue growth.

Conclusion

CompoSecure's total operating revenue grew, but the loss in net profit and the rise in costs indicate significant challenges in profitability and cost control. Intensified competition and the overall industry situation further affected the company's financial performance.

Opportunities

1. Through cooperation with Fiserv, composecure enhanced the availability of market promotion and secure identity verification services, providing a driving force for revenue growth.

2. The launch of new high-end card projects and cooperation with American Express may attract new customers and promote revenue growth.

3. Structural transactions are expected to bring $20 million in revenue, improving the company's operating cash flow.

Risks

1. Intensified competition may affect CompoSecure's market share, especially in the field of secure identity verification and financial services.

2. Exchange rate volatility risks may affect the company's profitability, especially the fluctuation of the US dollar against the Chinese yuan.

3. Industry policy change risks may affect the company's operating environment and market strategy.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.