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Bosideng International Holdings Limited Beat Revenue Forecasts By 10%: Here's What Analysts Are Forecasting Next

ボシデン国際控股有限公司は、売上高予測を10%上回りました:アナリストたちは次に何を予測しているのかをここでご紹介します

Simply Wall St ·  06/28 18:20

Bosideng International Holdings Limited (HKG:3998) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 10% higher than the analysts had forecast, at CN¥23b, while EPS of CN¥0.27 beat analyst models by 7.4%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bosideng International Holdings after the latest results.

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SEHK:3998 Earnings and Revenue Growth June 28th 2024

After the latest results, the 20 analysts covering Bosideng International Holdings are now predicting revenues of CN¥26.6b in 2025. If met, this would reflect a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 18% to CN¥0.33. In the lead-up to this report, the analysts had been modelling revenues of CN¥24.4b and earnings per share (EPS) of CN¥0.30 in 2025. So it seems there's been a definite increase in optimism about Bosideng International Holdings' future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Bosideng International Holdings 7.9% to HK$5.44on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Bosideng International Holdings, with the most bullish analyst valuing it at HK$6.60 and the most bearish at HK$4.30 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.4% annually. So although Bosideng International Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bosideng International Holdings following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Bosideng International Holdings going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Bosideng International Holdings that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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