Here's What Analysts Are Forecasting For Fu Shou Yuan International Group Limited (HKG:1448) After Its Annual Results

As you might know, Fu Shou Yuan International Group Limited (HKG:1448) last week released its latest yearly, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 5.5% short of analyst estimates at CN¥2.6b, and statutory earnings of CN¥0.35 per share missed forecasts by 4.7%. 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.

Check out our latest analysis for Fu Shou Yuan International Group

Taking into account the latest results, the current consensus from Fu Shou Yuan International Group's four analysts is for revenues of CN¥3.20b in 2024. This would reflect a sizeable 22% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 20% to CN¥0.42. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.23b and earnings per share (EPS) of CN¥0.44 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at HK$7.91, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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 Fu Shou Yuan International Group, with the most bullish analyst valuing it at HK$9.37 and the most bearish at HK$6.36 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fu Shou Yuan International Group shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fu Shou Yuan International Group's past performance and to peers in the same industry. 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 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fu Shou Yuan International Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at HK$7.91, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Fu Shou Yuan International Group going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Fu Shou Yuan International Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.