Earnings Update: Haidilao International Holding Ltd. (HKG:6862) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

As you might know, Haidilao International Holding Ltd. (HKG:6862) recently reported its annual numbers. Haidilao International Holding reported CN¥41b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥0.83 beat expectations, being 3.9% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Haidilao International Holding

Taking into account the latest results, the current consensus from Haidilao International Holding's 30 analysts is for revenues of CN¥45.9b in 2024. This would reflect a decent 11% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 13% to CN¥0.91. Before this earnings report, the analysts had been forecasting revenues of CN¥45.7b and earnings per share (EPS) of CN¥0.88 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of HK$21.11, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. Currently, the most bullish analyst values Haidilao International Holding at HK$31.22 per share, while the most bearish prices it at HK$13.92. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% annually. So it's pretty clear that Haidilao International Holding is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Haidilao International Holding's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at HK$21.11, 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. We have estimates - from multiple Haidilao International Holding analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Haidilao International Holding 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.