Sunac Services Holdings Limited (HKG:1516) Just Released Its Half-Year Results And Analysts Are Updating Their Estimates

It's been a sad week for Sunac Services Holdings Limited (HKG:1516), who've watched their investment drop 11% to HK$1.68 in the week since the company reported its interim result. Revenues were CN¥3.5b, and Sunac Services Holdings came in a solid 11% ahead of expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Sunac Services Holdings' eight analysts is for revenues of CN¥7.22b in 2025. This reflects a modest 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 147% to CN¥0.12. Before this earnings report, the analysts had been forecasting revenues of CN¥7.24b and earnings per share (EPS) of CN¥0.21 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

See our latest analysis for Sunac Services Holdings

The consensus price target held steady at HK$1.71, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Sunac Services Holdings analyst has a price target of HK$2.10 per share, while the most pessimistic values it at HK$1.20. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Sunac Services Holdings'historical trends, as the 5.4% annualised revenue growth to the end of 2025 is roughly in line with the 6.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.6% annually. So it's pretty clear that Sunac Services Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sunac Services Holdings. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sunac Services Holdings going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Sunac Services Holdings (including 1 which is significant) .

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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.