China Resources Beverage (Holdings) Company Limited Just Missed Revenue By 13%: Here's What Analysts Think Will Happen Next

China Resources Beverage (Holdings) Company Limited (HKG:2460) shareholders are probably feeling a little disappointed, since its shares fell 6.6% to HK$10.98 in the week after its latest half-yearly results. Revenues were CN¥6.2b, 13% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CN¥0.79 being in line with what the analysts forecast. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, China Resources Beverage (Holdings)'s 18 analysts are forecasting 2025 revenues to be CN¥12.2b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 2.4% to CN¥0.53 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥13.9b and earnings per share (EPS) of CN¥0.78 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a pretty serious reduction to earnings per share numbers as well.

View our latest analysis for China Resources Beverage (Holdings)

The consensus price target fell 7.6% to HK$14.67, with the weaker earnings outlook clearly leading valuation estimates. 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 HK$18.38 and the most bearish at HK$8.89 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China Resources Beverage (Holdings)'s past performance and to peers in the same industry. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2025. That would be a definite improvement, given that the past year have seen revenue shrink 10% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.1% annually. So it's pretty clear that, although revenues are improving, China Resources Beverage (Holdings) is still expected to grow slower than the 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of China Resources Beverage (Holdings)'s future valuation.

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

We also provide an overview of the China Resources Beverage (Holdings) Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.