Analysts Have Been Trimming Their Fu Shou Yuan International Group Limited (HKG:1448) Price Target After Its Latest Report

Last week, you might have seen that Fu Shou Yuan International Group Limited (HKG:1448) released its yearly result to the market. The early response was not positive, with shares down 6.2% to HK$3.92 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥2.1b, statutory earnings beat expectations 2.5%, with Fu Shou Yuan International Group reporting profits of CN¥0.16 per share. 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.

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Taking into account the latest results, the current consensus from Fu Shou Yuan International Group's five analysts is for revenues of CN¥2.31b in 2025. This would reflect a solid 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 84% to CN¥0.30. Before this earnings report, the analysts had been forecasting revenues of CN¥2.44b and earnings per share (EPS) of CN¥0.32 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.

Check out our latest analysis for Fu Shou Yuan International Group

The consensus price target fell 9.5% to HK$4.76, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Fu Shou Yuan International Group analyst has a price target of HK$5.10 per share, while the most pessimistic values it at HK$4.59. This is a very narrow spread of estimates, implying either that Fu Shou Yuan International Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's clear from the latest estimates that Fu Shou Yuan International Group's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Fu Shou Yuan International Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Fu Shou Yuan International Group. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Fu Shou Yuan International Group's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Fu Shou Yuan International Group. 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 Fu Shou Yuan International Group 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 2 warning signs for Fu Shou Yuan International Group (1 is significant!) 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.