Sun Hung Kai Properties Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Sun Hung Kai Properties Limited (HKG:16) just released its latest annual report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at HK$72b, statutory earnings missed forecasts by 17%, coming in at just HK$6.57 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Sun Hung Kai Properties

Taking into account the latest results, the consensus forecast from Sun Hung Kai Properties' 14 analysts is for revenues of HK$77.0b in 2025. This reflects a satisfactory 7.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 20% to HK$8.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$83.8b and earnings per share (EPS) of HK$8.60 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of HK$88.87, suggesting the downgrades are not expected to have a long-term impact on Sun Hung Kai Properties' valuation. 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 Sun Hung Kai Properties analyst has a price target of HK$115 per share, while the most pessimistic values it at HK$70.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Sun Hung Kai Properties' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.7% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 5.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.7% annually. Not only are Sun Hung Kai Properties' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sun Hung Kai Properties. They also downgraded Sun Hung Kai Properties' revenue estimates, but industry data suggests that it 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. We have estimates - from multiple Sun Hung Kai Properties analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Sun Hung Kai Properties , and understanding it should be part of your investment process.

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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.