Kingboard Laminates Holdings Limited (HKG:1888) just released its latest full-year report and things are not looking great. Results showed a clear earnings miss, with HK$17b revenue coming in 2.1% lower than what the analystsexpected. Statutory earnings per share (EPS) of HK$0.29 missed the mark badly, arriving some 35% below what was expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the dual analysts covering Kingboard Laminates Holdings are now predicting revenues of HK$18.9b in 2024. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 100% to HK$0.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$19.6b and earnings per share (EPS) of HK$0.79 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 18% to HK$7.15.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kingboard Laminates Holdings' past performance and to peers in the same industry. It's clear from the latest estimates that Kingboard Laminates Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Kingboard Laminates Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kingboard Laminates Holdings' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Kingboard Laminates Holdings. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Kingboard Laminates Holdings .
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.
