CSI Properties Limited Just Recorded A 8.9% Revenue Beat: Here's What Analysts Think

CSI Properties Limited (HKG:497) just released its latest annual results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 8.9% to hit HK$420m. Statutory earnings per share (EPS) came in at HK$0.12, some 2.2% above whatthe analyst had expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for CSI Properties

Following the latest results, CSI Properties' lone analyst are now forecasting revenues of HK$1.18b in 2023. This would be a substantial 182% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to shoot up 157% to HK$0.05. Before this earnings report, the analyst had been forecasting revenues of HK$1.14b and earnings per share (EPS) of HK$0.04 in 2023. So it seems there's been a definite increase in optimism about CSI Properties' future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

Despite these upgrades,the analyst has not made any major changes to their price target of HK$0.28, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that CSI Properties is forecast to grow faster in the future than it has in the past, with revenues expected to display 182% annualised growth until the end of 2023. If achieved, this would be a much better result than the 28% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.7% per year. So it looks like CSI Properties is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CSI Properties' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at HK$0.28, with the latest estimates not enough to have an impact on their price target.

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 analyst estimates for CSI Properties going out as far as 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for CSI Properties you should be aware of, and 1 of them is a bit concerning.

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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.