As you might know, Sun Hung Kai Properties Limited (HKG:16) last week released its latest yearly, and things did not turn out so great for shareholders. Sun Hung Kai Properties missed earnings this time around, with HK$72b revenue coming in 5.9% below what the analysts had modelled. Statutory earnings per share (EPS) of HK$6.57 also fell short of expectations by 17%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Sun Hung Kai Properties from 14 analysts is for revenues of HK$78.3b in 2025. If met, it would imply a solid 9.5% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 20% to HK$8.33. Before this earnings report, the analysts had been forecasting revenues of HK$77.3b and earnings per share (EPS) of HK$8.32 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of HK$92.68, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Sun Hung Kai Properties, with the most bullish analyst valuing it at HK$116 and the most bearish at HK$70.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. One thing stands out from these estimates, which is that Sun Hung Kai Properties is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.5% annualised growth until the end of 2025. If achieved, this would be a much better result than the 5.4% 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 4.6% per year. So it looks like Sun Hung Kai Properties is expected to grow faster than its competitors, at least for a while.
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. The consensus price target held steady at HK$92.68, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sun Hung Kai Properties going out to 2027, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Sun Hung Kai Properties that you should be aware of.
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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.
