Earnings Update: China Resources Beer (Holdings) Company Limited (HKG:291) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Last week saw the newest yearly earnings release from China Resources Beer (Holdings) Company Limited (HKG:291), an important milestone in the company's journey to build a stronger business. China Resources Beer (Holdings) reported in line with analyst predictions, delivering revenues of CN¥39b and statutory earnings per share of CN¥1.57, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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

Taking into account the latest results, the most recent consensus for China Resources Beer (Holdings) from 36 analysts is for revenues of CN¥41.6b in 2024. If met, it would imply a satisfactory 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 17% to CN¥1.86. Before this earnings report, the analysts had been forecasting revenues of CN¥42.4b and earnings per share (EPS) of CN¥1.87 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was steady at HK$50.47even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values China Resources Beer (Holdings) at HK$74.80 per share, while the most bearish prices it at HK$33.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting China Resources Beer (Holdings)'s growth to accelerate, with the forecast 6.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, China Resources Beer (Holdings) is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for China Resources Beer (Holdings) going out to 2026, and you can see them free on our platform here.

We also provide an overview of the China Resources Beer (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.