The DPC Dash Ltd (HKG:1405) Half-Year Results Are Out And Analysts Have Published New Forecasts

It's been a good week for DPC Dash Ltd (HKG:1405) shareholders, because the company has just released its latest interim results, and the shares gained 2.6% to HK$88.80. Results overall were respectable, with statutory earnings of CN¥0.42 per share roughly in line with what the analysts had forecast. Revenues of CN¥2.6b came in 2.1% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for DPC Dash from ten analysts is for revenues of CN¥5.44b in 2025. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 40% to CN¥1.18. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.45b and earnings per share (EPS) of CN¥0.96 in 2025. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

Check out our latest analysis for DPC Dash

There's been no major changes to the consensus price target of HK$120, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on DPC Dash, with the most bullish analyst valuing it at HK$142 and the most bearish at HK$105 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DPC Dash's past performance and to peers in the same industry. It's pretty clear that there is an expectation that DPC Dash's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 25% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.9% annually. Even after the forecast slowdown in growth, it seems obvious that DPC Dash is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards DPC Dash following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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 estimates - from multiple DPC Dash analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for DPC Dash that 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.