DPC Dash Ltd (HKG:1405) Half-Yearly Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for DPC Dash Ltd (HKG:1405) shareholders, because the company has just released its latest half-year results, and the shares gained 7.3% to HK$68.00. The results were positive, with revenue coming in at CN¥2.0b, beating analyst expectations by 9.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for DPC Dash

Following the latest results, DPC Dash's nine analysts are now forecasting revenues of CN¥4.16b in 2024. This would be a notable 12% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with DPC Dash forecast to report a statutory profit of CN¥0.069 per share. Before this latest report, the consensus had been expecting revenues of CN¥4.07b and CN¥0.012 per share in losses. So we can see there's been a pretty clear upgrade to expectations following the latest results, with a slight bump in revenues expected to lead to profitability earlier than previously forecast.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of HK$75.90, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. There are some variant perceptions on DPC Dash, with the most bullish analyst valuing it at HK$81.29 and the most bearish at HK$65.49 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that DPC Dash's revenue growth is expected to slow, with the forecast 26% annualised growth rate until the end of 2024 being well below the historical 49% 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) 12% per year. So it's pretty clear that, while DPC Dash's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting DPC Dash to become profitable next year. 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$75.90, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for DPC Dash going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.