The Kerry Properties Limited (HKG:683) Interim Results Are Out And Analysts Have Published New Forecasts

The interim results for Kerry Properties Limited (HKG:683) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of HK$5.0b and statutory earnings per share of HK$0.54 both in line with analyst estimates, showing that Kerry Properties 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Kerry Properties

Taking into account the latest results, the current consensus from Kerry Properties' eight analysts is for revenues of HK$15.6b in 2024. This would reflect a substantial 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 26% to HK$1.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$15.9b and earnings per share (EPS) of HK$2.17 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$16.43, 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 Kerry Properties at HK$20.35 per share, while the most bearish prices it at HK$13.50. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kerry Properties' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Kerry Properties is forecast to grow faster in the future than it has in the past, with revenues expected to display 53% annualised growth until the end of 2024. If achieved, this would be a much better result than the 5.9% annual decline 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 5.6% annually. Not only are Kerry 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. We have estimates - from multiple Kerry Properties analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Kerry Properties .

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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.