Shareholders of Man Wah Holdings Limited (HKG:1999) will be pleased this week, given that the stock price is up 11% to HK$7.10 following its latest annual results. The result was positive overall - although revenues of HK$18b were in line with what the analysts predicted, Man Wah Holdings surprised by delivering a statutory profit of HK$0.59 per share, modestly greater than expected. 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 Man Wah Holdings after the latest results.
Taking into account the latest results, the most recent consensus for Man Wah Holdings from twelve analysts is for revenues of HK$20.2b in 2025. If met, it would imply a decent 9.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 13% to HK$0.67. In the lead-up to this report, the analysts had been modelling revenues of HK$20.0b and earnings per share (EPS) of HK$0.65 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The consensus price target rose 15% to HK$8.23despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Man Wah Holdings' earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Man Wah Holdings at HK$10.50 per share, while the most bearish prices it at HK$5.30. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 Man Wah Holdings'historical trends, as the 9.6% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. It's clear that while Man Wah Holdings' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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 Man Wah Holdings going out to 2027, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Man Wah Holdings , and understanding it should be part of your investment process.
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.