Bloks Group Limited (HKG:325) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Bloks Group Limited (HKG:325) came out with its interim results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a weak result overall, with Bloks Group reporting CN¥1.3b in revenues, which was 20% less than what the analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Bloks Group's twelve analysts is for revenues of CN¥3.28b in 2025. This reflects a major 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 352% to CN¥2.78. In the lead-up to this report, the analysts had been modelling revenues of CN¥4.09b and earnings per share (EPS) of CN¥3.89 in 2025. Indeed, we can see that the analysts are a lot more bearish about Bloks Group's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Bloks Group

The consensus price target fell 8.6% to HK$147, 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 Bloks Group analyst has a price target of HK$194 per share, while the most pessimistic values it at HK$106. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Bloks Group'shistorical trends, as the 68% annualised revenue growth to the end of 2025 is roughly in line with the 57% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.2% per year. So although Bloks Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bloks Group. They also downgraded Bloks Group's revenue estimates, but industry data suggests that it is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Bloks Group analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Bloks Group that you need to be mindful 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.