Yuexiu Services Group Limited (HKG:6626) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Yuexiu Services Group Limited (HKG:6626) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of CN¥3.2b and statutory earnings per share of CN¥0.32 both in line with analyst estimates, showing that Yuexiu Services Group is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Yuexiu Services Group

Taking into account the latest results, the most recent consensus for Yuexiu Services Group from five analysts is for revenues of CN¥3.92b in 2024. If met, it would imply a substantial 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 18% to CN¥0.38. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.98b and earnings per share (EPS) of CN¥0.39 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at HK$4.41, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Yuexiu Services Group at HK$4.60 per share, while the most bearish prices it at HK$4.14. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Yuexiu Services Group is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Yuexiu Services Group's revenue growth is expected to slow, with the forecast 21% annualised growth rate until the end of 2024 being well below the historical 28% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.7% per year. So it's pretty clear that, while Yuexiu Services Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Yuexiu Services Group. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at HK$4.41, with the latest estimates not enough to have an impact on their price targets.

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 Yuexiu Services Group analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Yuexiu Services Group that you need to take into consideration.

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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.