BBMG Corporation (HKG:2009) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Investors in BBMG Corporation (HKG:2009) had a good week, as its shares rose 3.2% to close at HK$0.64 following the release of its annual results. The results were positive, with revenue coming in at CN¥108b, beating analyst expectations by 4.5%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for BBMG

Taking into account the latest results, the three analysts covering BBMG provided consensus estimates of CN¥103.1b revenue in 2024, which would reflect a perceptible 4.5% decline over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥109.2b and earnings per share (EPS) of CN¥0.10 in 2024. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

Intriguingly,the analysts have cut their price target 8.6% to HK$1.30 showing a clear decline in sentiment around BBMG's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values BBMG at HK$1.99 per share, while the most bearish prices it at HK$0.59. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on 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 BBMG's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.5% by the end of 2024. This indicates a significant reduction from annual growth of 4.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.4% per year. It's pretty clear that BBMG's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for BBMG next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

We have estimates for BBMG from its three analysts out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - BBMG has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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.