Earnings Update: Mao Geping Cosmetics Co., Ltd. (HKG:1318) Just Reported Its Half-Yearly Results And Analysts Are Updating Their Forecasts

Mao Geping Cosmetics Co., Ltd. (HKG:1318) last week reported its latest interim results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 2.2% below expectations, at CN¥2.6b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥2.18 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the 19 analysts covering Mao Geping Cosmetics are now predicting revenues of CN¥5.18b in 2025. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 13% to CN¥2.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.16b and earnings per share (EPS) of CN¥2.41 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Mao Geping Cosmetics

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$123. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Mao Geping Cosmetics analyst has a price target of HK$135 per share, while the most pessimistic values it at HK$88.96. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Mao Geping Cosmetics shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 33% growth on an annualised basis. That is in line with its 30% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although Mao Geping Cosmetics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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 Mao Geping Cosmetics. Long-term earnings power is much more important than next year's profits. We have forecasts for Mao Geping Cosmetics going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Mao Geping Cosmetics' 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.