Earnings Report: Jinmao Property Services Co., Limited Missed Revenue Estimates By 11%

Investors in Jinmao Property Services Co., Limited (HKG:816) had a good week, as its shares rose 7.3% to close at HK$2.20 following the release of its annual results. It looks to have been a bit of a mixed result. While revenues of CN¥2.7b fell 11% short of what the analysts had predicted, statutory earnings per share (EPS) of CN¥0.37 exceeded expectations by 3.2%. 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. 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 Jinmao Property Services

Taking into account the latest results, the consensus forecast from Jinmao Property Services' three analysts is for revenues of CN¥3.19b in 2024. This reflects a decent 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 13% to CN¥0.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.82b and earnings per share (EPS) of CN¥0.46 in 2024. Indeed, we can see that sentiment has declined measurably after results came out, with a real cut to revenue estimates and a small dip in EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to HK$2.04. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Jinmao Property Services, with the most bullish analyst valuing it at HK$2.50 and the most bearish at HK$1.58 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Jinmao Property Services' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% per year. So it's pretty clear that, while Jinmao Property Services' 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 Jinmao Property Services. They also downgraded Jinmao Property Services' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Jinmao Property Services' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Jinmao Property Services analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Jinmao Property Services is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.