Analysts Are More Bearish On SSY Group Limited (HKG:2005) Than They Used To Be

The latest analyst coverage could presage a bad day for SSY Group Limited (HKG:2005), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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After the downgrade, the seven analysts covering SSY Group are now predicting revenues of HK$6.1b in 2025. If met, this would reflect a modest 6.3% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to ascend 11% to HK$0.40. Previously, the analysts had been modelling revenues of HK$7.3b and earnings per share (EPS) of HK$0.48 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a considerable drop in earnings per share numbers as well.

Check out our latest analysis for SSY Group

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to HK$5.13.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that SSY Group's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2025 being well below the historical 9.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that SSY Group is also expected to grow slower than other industry participants.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for SSY Group. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of SSY Group.

Still, 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 SSY Group going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.