Analysts Are More Bearish On China Resources Beverage (Holdings) Company Limited (HKG:2460) Than They Used To Be

Market forces rained on the parade of China Resources Beverage (Holdings) Company Limited (HKG:2460) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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Following the latest downgrade, China Resources Beverage (Holdings)'s 18 analysts currently expect revenues in 2025 to be CN¥12b, approximately in line with the last 12 months. Statutory earnings per share are supposed to dip 6.2% to CN¥0.51 in the same period. Before this latest update, the analysts had been forecasting revenues of CN¥14b and earnings per share (EPS) of CN¥0.78 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for China Resources Beverage (Holdings)

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to CN¥13.07. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on China Resources Beverage (Holdings), with the most bullish analyst valuing it at CN¥16.82 and the most bearish at CN¥8.05 per share. 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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 10% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.0% per year. So while a broad number of companies are forecast to grow, unfortunately China Resources Beverage (Holdings) is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that China Resources Beverage (Holdings)'s revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for China Resources Beverage (Holdings) going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.