Shareholders will be ecstatic, with their stake up 22% over the past week following AK Medical Holdings Limited's (HKG:1789) latest half-year results. Results were roughly in line with estimates, with revenues of CN¥657m and statutory earnings per share of CN¥0.12. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AK Medical Holdings after the latest results.
Taking into account the latest results, the current consensus from AK Medical Holdings' seven analysts is for revenues of CN¥1.39b in 2024. This would reflect a huge 26% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 44% to CN¥0.24. Before this earnings report, the analysts had been forecasting revenues of CN¥1.41b and earnings per share (EPS) of CN¥0.23 in 2024. So the consensus seems to have become somewhat more optimistic on AK Medical Holdings' earnings potential following these results.
The average the analysts price target fell 13% to HK$7.04, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. 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 AK Medical Holdings analyst has a price target of HK$9.35 per share, while the most pessimistic values it at HK$5.28. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 AK Medical Holdings' growth to accelerate, with the forecast 58% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AK Medical Holdings to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards AK Medical Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 forecasts for AK Medical Holdings going out to 2026, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.
