Shareholders of Angelalign Technology Inc. (HKG:6699) will be pleased this week, given that the stock price is up 16% to HK$61.40 following its latest half-year results. Statutory earnings per share disappointed, coming in -51% short of expectations, at CN¥0.13. Fortunately revenue performance was a lot stronger at CN¥861m arriving 18% ahead of predictions. 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. 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 Angelalign Technology's 13 analysts is for revenues of CN¥1.85b in 2024. This reflects an okay 7.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 70% to CN¥0.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.75b and earnings per share (EPS) of CN¥0.43 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of HK$84.70, implying that the uplift in revenue is not expected to greatly contribute to Angelalign Technology's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Angelalign Technology analyst has a price target of HK$104 per share, while the most pessimistic values it at HK$64.14. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Angelalign Technology's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Angelalign Technology is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Angelalign Technology analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Angelalign Technology that you should be aware of.
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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.