Analysts Just Published A Bright New Outlook For Haitian International Holdings Limited's (HKG:1882)

Haitian International Holdings Limited (HKG:1882) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the latest consensus from Haitian International Holdings' ten analysts is for revenues of CN¥14b in 2021, which would reflect a notable 18% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 17% to CN¥1.75. Before this latest update, the analysts had been forecasting revenues of CN¥13b and earnings per share (EPS) of CN¥1.54 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Haitian International Holdings

It will come as no surprise to learn that the analysts have increased their price target for Haitian International Holdings 15% to CN¥30.51 on the back of these upgrades. 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 Haitian International Holdings analyst has a price target of CN¥39.83 per share, while the most pessimistic values it at CN¥32.80. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Haitian International Holdings is an easy business to forecast or the underlying assumptions are obvious.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Haitian International Holdings' growth to accelerate, with the forecast 18% annualised growth to the end of 2021 ranking favourably alongside historical growth of 7.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Haitian International Holdings to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Haitian International Holdings could be worth investigating further.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Haitian International Holdings that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

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This article by Simply Wall St is general in nature. 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.
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