From 253% Surge in 2023 to 43% Increase This Year: Can the Big Rally Continue?

After rebounding dramatically by 253.27% last year, the momentum hasn't slowed down, with a staggering 43.12% increase this year.

Curious about which stock this is? Let's find out!

Congratulations to @MojoStellar for achieving an impressive return of 448.60% by trading $Rolls Royce Holdings plc(RYCEY)$! 👏👏👏

Whenever Rolls-Royce is mentioned, thoughts often drift to luxury motors. However, Rolls-Royce's primary business is aero-engines. The car trademark of Rolls-Royce now belongs to $Bayerische Motoren Werke AG(BMWYY)$. 

In 2023, the shares surged by 253.27%.

A global overview of the full-year earnings for 2023 already indicates a prosperous year for the company. Revenue witnessed a notable 21% growth driven by volume and price increases on parts. Gross profit soared by 30% to £3.2 billion, while operating profit experienced an exceptional surge of 143% to £1.6 billion. These results factor in a £1.1 billion hedging impact on revenues, £461 million on gross profit, and £475 million on operating profit.

Even with the hedge book impact, the results were commendable, showcasing improved margins across all segments, primarily attributed to Civil Aerospace aftermarket and enhanced cost efficiency for the group. Free cash flow exhibited a remarkable improvement of 154% to £1.3 billion, while net debt witnessed a similar positive trend.

As for 2024, is there still room for Rolls-Royce to climb?

• The guidance for 2024 positions operating profits within the range of £1.7 billion to £2 billion, signaling a 16% growth at the midpoint, driven by a combination of volume expansion, pricing strategies, and margin enhancement.

• Engine flight hours are anticipated to rebound to pre-pandemic levels, showing an increase from the 88% recovery witnessed in 2023.

• Free cash flow is projected to range between £1.7 billion to £1.9 billion, presenting an almost 50% growth compared to 2023.

• The 2024 guidance sets forth even more ambitious targets for midterm growth, aiming to double operating profit and more than double free cash flow.

The question lingers: Can The Big Rally Continue?

🎁Rewards：

• Feel free to share your most profitable trades in the comment section for a chance to win Tiger Coins!

• If you've achieved profits from other potential stocks we don’t know, kindly share your trading strategies in your post, and remember to include the topic "Winning Trades". Hope you'll be the next one to make it onto the leaderboard~

🧭 Share positions: