News Flash: Analysts Just Made A Meaningful Upgrade To Their China Overseas Property Holdings Limited (HKG:2669) Forecasts

Shareholders in China Overseas Property Holdings Limited (HKG:2669) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the 22 analysts covering China Overseas Property Holdings are now predicting revenues of CN¥16b in 2024. If met, this would reflect a sizeable 25% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to step up 18% to CN¥0.48. Before this latest update, the analysts had been forecasting revenues of CN¥15b and earnings per share (EPS) of CN¥0.46 in 2024. The forecasts seem more optimistic now, with a solid increase in revenue and a small increase to earnings per share estimates.

Check out our latest analysis for China Overseas Property Holdings

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of HK$7.83, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. We can infer from the latest estimates that forecasts expect a continuation of China Overseas Property Holdings'historical trends, as the 25% annualised revenue growth to the end of 2024 is roughly in line with the 27% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.4% per year. So it's pretty clear that China Overseas Property Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at China Overseas Property Holdings.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple China Overseas Property Holdings analysts - going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.