Want Want China Holdings Limited (HKG:151) Interim Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Want Want China Holdings Limited (HKG:151) released its half-year result to the market. The early response was not positive, with shares down 9.3% to HK$4.40 in the past week. It was a credible result overall, with revenues of CN¥11b and statutory earnings per share of CN¥0.16 both in line with analyst estimates, showing that Want Want China Holdings is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Want Want China Holdings

Taking into account the latest results, the current consensus from Want Want China Holdings' 21 analysts is for revenues of CN¥23.9b in 2025. This would reflect a reasonable 3.0% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 2.5% to CN¥0.36. In the lead-up to this report, the analysts had been modelling revenues of CN¥24.5b and earnings per share (EPS) of CN¥0.37 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.

The analysts made no major changes to their price target of HK$5.57, suggesting the downgrades are not expected to have a long-term impact on Want Want China Holdings' 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. The most optimistic Want Want China Holdings analyst has a price target of HK$8.66 per share, while the most pessimistic values it at HK$3.59. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Want Want China Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Want Want China Holdings' growth to accelerate, with the forecast 6.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Want Want China Holdings is expected to grow at about the same rate as the wider 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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 in mind, we wouldn't be too quick to come to a conclusion on Want Want China Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Want Want China Holdings 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 Want Want China Holdings 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.