Need To Know: Analysts Are Much More Bullish On Midland Holdings Limited (HKG:1200) Revenues

By
Simply Wall St
Published
November 30, 2021
SEHK:1200
Source: Shutterstock

Midland Holdings Limited (HKG:1200) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After this upgrade, Midland Holdings' twin analysts are now forecasting revenues of HK$6.1b in 2021. This would be a satisfactory 2.5% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to plunge 24% to HK$0.35 in the same period. Before this latest update, the analysts had been forecasting revenues of HK$5.5b and earnings per share (EPS) of HK$0.35 in 2021. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

View our latest analysis for Midland Holdings

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SEHK:1200 Earnings and Revenue Growth November 30th 2021

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. The analysts are definitely expecting Midland Holdings' growth to accelerate, with the forecast 2.5% annualised growth to the end of 2021 ranking favourably alongside historical growth of 1.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Midland Holdings is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Midland Holdings.

Better yet, our automated discounted cash flow calculation (DCF) suggests Midland Holdings could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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