Pou Sheng International (Holdings) Limited (HKG:3813) last week reported its latest half-yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Pou Sheng International (Holdings) reported in line with analyst predictions, delivering revenues of CN¥9.2b and statutory earnings per share of CN¥0.095, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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Taking into account the latest results, the current consensus, from the five analysts covering Pou Sheng International (Holdings), is for revenues of CN¥17.2b in 2025. This implies a small 2.5% reduction in Pou Sheng International (Holdings)'s revenue over the past 12 months. Per-share earnings are expected to rise 2.7% to CN¥0.068. In the lead-up to this report, the analysts had been modelling revenues of CN¥18.2b and earnings per share (EPS) of CN¥0.096 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
View our latest analysis for Pou Sheng International (Holdings)
The consensus price target fell 5.6% to HK$1.04, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Pou Sheng International (Holdings) analyst has a price target of HK$2.85 per share, while the most pessimistic values it at HK$0.55. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 8.8% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 17% annually. So while a broad number of companies are forecast to grow, unfortunately Pou Sheng International (Holdings) is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pou Sheng International (Holdings). Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.
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 Pou Sheng International (Holdings) going out to 2027, and you can see them free on our platform here..
Even so, be aware that Pou Sheng International (Holdings) is showing 1 warning sign in our investment analysis , you should know about...
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Try a Demo Portfolio for FreeHave 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.