CIFI Ever Sunshine Services Group Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

CIFI Ever Sunshine Services Group Limited (HKG:1995) defied analyst predictions to release its full-year results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.7% to hit CN¥6.5b. CIFI Ever Sunshine Services Group reported statutory earnings per share (EPS) CN¥0.25, which was a notable 12% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for CIFI Ever Sunshine Services Group

After the latest results, the seven analysts covering CIFI Ever Sunshine Services Group are now predicting revenues of CN¥6.75b in 2024. If met, this would reflect a satisfactory 3.2% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be CN¥0.25, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.80b and earnings per share (EPS) of CN¥0.24 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of HK$1.38, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic CIFI Ever Sunshine Services Group analyst has a price target of HK$1.79 per share, while the most pessimistic values it at HK$1.11. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that CIFI Ever Sunshine Services Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that CIFI Ever Sunshine Services Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CIFI Ever Sunshine Services Group following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CIFI Ever Sunshine Services Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at HK$1.38, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple CIFI Ever Sunshine Services Group analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for CIFI Ever Sunshine Services Group that you need to be mindful of.

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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.