Investors in Uni-President China Holdings Ltd (HKG:220) had a good week, as its shares rose 2.6% to close at HK$6.43 following the release of its half-year results. It was a credible result overall, with revenues of CN¥15b and statutory earnings per share of CN¥0.22 both in line with analyst estimates, showing that Uni-President China Holdings is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the consensus forecast from Uni-President China Holdings' 23 analysts is for revenues of CN¥30.6b in 2024. This reflects a satisfactory 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.1% to CN¥0.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥30.6b and earnings per share (EPS) of CN¥0.42 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of HK$7.92, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Uni-President China Holdings analyst has a price target of HK$8.91 per share, while the most pessimistic values it at HK$5.99. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Uni-President China Holdings shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Uni-President China Holdings'historical trends, as the 7.6% annualised revenue growth to the end of 2024 is roughly in line with the 7.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.6% per year. So although Uni-President China Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Uni-President China Holdings' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at HK$7.92, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Uni-President China Holdings going out to 2026, and you can see them free on our platform here..

Even so, be aware that Uni-President China Holdings is showing 2 warning signs in our investment analysis , you should know about...

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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.