The investors in China Resources Mixc Lifestyle Services Limited's (HKG:1209) will be rubbing their hands together with glee today, after the share price leapt 20% to HK$25.90 in the week following its interim results. China Resources Mixc Lifestyle Services beat revenue forecasts by a solid 14% to hit CN¥8.0b. Statutory earnings per share came in at CN¥1.28, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on China Resources Mixc Lifestyle Services after the latest results.
Taking into account the latest results, the current consensus from China Resources Mixc Lifestyle Services' 22 analysts is for revenues of CN¥17.7b in 2024. This would reflect a solid 11% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.7% to CN¥1.58. In the lead-up to this report, the analysts had been modelling revenues of CN¥17.8b and earnings per share (EPS) of CN¥1.56 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of HK$34.11, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic China Resources Mixc Lifestyle Services analyst has a price target of HK$49.12 per share, while the most pessimistic values it at HK$25.08. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of China Resources Mixc Lifestyle Services'historical trends, as the 23% annualised revenue growth to the end of 2024 is roughly in line with the 24% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.3% annually. So although China Resources Mixc Lifestyle Services is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple China Resources Mixc Lifestyle Services analysts - going out to 2026, and you can see them free on our platform here.
We also provide an overview of the China Resources Mixc Lifestyle Services Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
