Yue Yuen Industrial (Holdings) Limited (HKG:551) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

Yue Yuen Industrial (Holdings) Limited (HKG:551) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results were positive, with revenue coming in at US$2.1b, beating analyst expectations by 2.1%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Yue Yuen Industrial (Holdings) after the latest results.

See our latest analysis for Yue Yuen Industrial (Holdings)

Taking into account the latest results, the most recent consensus for Yue Yuen Industrial (Holdings) from 14 analysts is for revenues of US$8.63b in 2025. If met, it would imply a solid 8.2% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to drop 11% to US$0.26 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$8.60b and earnings per share (EPS) of US$0.25 in 2025. So the consensus seems to have become somewhat more optimistic on Yue Yuen Industrial (Holdings)'s earnings potential following these results.

There's been no major changes to the consensus price target of HK$19.04, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Yue Yuen Industrial (Holdings) at HK$23.02 per share, while the most bearish prices it at HK$9.49. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Yue Yuen Industrial (Holdings) is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.5% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.2% annual decline 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 revenue grow 9.6% per year. Although Yue Yuen Industrial (Holdings)'s revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Yue Yuen Industrial (Holdings)'s earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Yue Yuen Industrial (Holdings)'s revenue is expected to perform worse than the wider industry. The consensus price target held steady at HK$19.04, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Yue Yuen Industrial (Holdings). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Yue Yuen Industrial (Holdings) going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Yue Yuen Industrial (Holdings) 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.