Revenue Beat: Laopu Gold Co., Ltd. Beat Analyst Estimates By 5.5%

Last week, you might have seen that Laopu Gold Co., Ltd. (HKG:6181) released its half-year result to the market. The early response was not positive, with shares down 6.6% to HK$729 in the past week. Results overall were respectable, with statutory earnings of CN¥9.47 per share roughly in line with what the analysts had forecast. Revenues of CN¥12b came in 5.5% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 most recent consensus for Laopu Gold from 18 analysts is for revenues of CN¥26.4b in 2025. If met, it would imply a major 52% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 55% to CN¥28.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥25.7b and earnings per share (EPS) of CN¥28.90 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

See our latest analysis for Laopu Gold

Even though revenue forecasts increased, there was no change to the consensus price target of HK$992, suggesting the analysts are focused on earnings as the driver of value creation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Laopu Gold at HK$1,295 per share, while the most bearish prices it at HK$465. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Laopu Gold's past performance and to peers in the same industry. We would highlight that Laopu Gold's revenue growth is expected to slow, with the forecast 131% annualised growth rate until the end of 2025 being well below the historical 228% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. Even after the forecast slowdown in growth, it seems obvious that Laopu Gold is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at HK$992, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Laopu Gold going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Laopu Gold's balance sheet, and whether we think Laopu Gold is carrying too much debt, for free on our platform here.

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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.