Tai Cheung Holdings Limited (HKG:88) missed earnings with its latest full-year results, disappointing overly-optimistic forecasts. Earnings came in short of expectations, with revenues of HK$122m missing the mark by 37%, and statutory earnings per share of HK$0.12 falling 6.9% short. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

After the latest results, the one analyst covering Tai Cheung Holdings are now predicting revenues of HK$552.0m in 2025. If met, this would reflect a major 354% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 271% to HK$0.45. Before this earnings report, the analyst had been forecasting revenues of HK$548.0m and earnings per share (EPS) of HK$0.47 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at HK$4.22, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Tai Cheung Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 4x annualised growth until the end of 2025. If achieved, this would be a much better result than the 5.3% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.4% per year. Not only are Tai Cheung Holdings' revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tai Cheung Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at HK$4.22, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Tai Cheung Holdings that you need to take into consideration.

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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.

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