Yue Yuen Industrial (Holdings) Limited Just Missed EPS By 9.1%: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for Yue Yuen Industrial (Holdings) Limited (HKG:551) shares in the week since its full-year report, with the stock down 17% to HK$13.28. It looks like the results were a bit of a negative overall. While revenues of US$8.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.1% to hit US$0.24 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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 15 analysts is for revenues of US$8.42b in 2025. If met, it would imply a satisfactory 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.9% to US$0.27. In the lead-up to this report, the analysts had been modelling revenues of US$8.63b and earnings per share (EPS) of US$0.29 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of HK$19.12, suggesting the downgrades are not expected to have a long-term impact on Yue Yuen Industrial (Holdings)'s valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Yue Yuen Industrial (Holdings), with the most bullish analyst valuing it at HK$27.30 and the most bearish at HK$7.99 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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 2.9% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually for the foreseeable future. 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Yue Yuen Industrial (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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Yue Yuen Industrial (Holdings) going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Yue Yuen Industrial (Holdings) that we have uncovered.

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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.