Smoore International Holdings Limited (HKG:6969) Just Released Its Half-Year Earnings: Here's What Analysts Think

Last week saw the newest half-yearly earnings release from Smoore International Holdings Limited (HKG:6969), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of CN¥5.0b and statutory earnings per share of CN¥0.27 both in line with analyst estimates, showing that Smoore International 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Smoore International Holdings

Taking into account the latest results, the most recent consensus for Smoore International Holdings from ten analysts is for revenues of CN¥12.1b in 2024. If met, it would imply a meaningful 9.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 6.8% to CN¥0.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥12.5b and earnings per share (EPS) of CN¥0.28 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 consensus has reconfirmed its price target of HK$11.22, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Smoore International Holdings' market value. 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 Smoore International Holdings, with the most bullish analyst valuing it at HK$24.38 and the most bearish at HK$6.80 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Smoore International Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 20% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 7.5% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.4% annually. So it looks like Smoore International Holdings is expected to grow faster than its competitors, at least for a while.

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. They also downgraded Smoore International Holdings' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share 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.

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. At Simply Wall St, we have a full range of analyst estimates for Smoore International Holdings going out to 2026, and you can see them free on our platform here..

You can also see our analysis of Smoore International Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.