Tai Hing Group Holdings Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a sad week for Tai Hing Group Holdings Limited (HKG:6811), who've watched their investment drop 12% to HK$1.86 in the week since the company reported its annual result. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at HK$2.8b, statutory earnings beat expectations by a notable 60%, coming in at HK$0.12 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Tai Hing Group Holdings

Following the latest results, Tai Hing Group Holdings' twin analysts are now forecasting revenues of HK$4.05b in 2021. This would be a huge 45% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 78% to HK$0.21. In the lead-up to this report, the analysts had been modelling revenues of HK$3.73b and earnings per share (EPS) of HK$0.17 in 2021. So it seems there's been a definite increase in optimism about Tai Hing Group Holdings' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of HK$2.46, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. One thing stands out from these estimates, which is that Tai Hing Group Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2021. If achieved, this would be a much better result than the 0.9% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 37% annually. So it looks like Tai Hing Group Holdings is expected to grow at about the same rate as 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 Tai Hing Group Holdings following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at HK$2.46, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Tai Hing Group Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Tai Hing Group Holdings going out as far as 2023, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Tai Hing Group Holdings you should know about.

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