Pou Sheng International (Holdings) Limited (HKG:3813) Just Released Its Half-Yearly Earnings: Here's What Analysts Think

Last week, you might have seen that Pou Sheng International (Holdings) Limited (HKG:3813) released its half-yearly result to the market. The early response was not positive, with shares down 2.1% to HK$0.47 in the past week. Results were roughly in line with estimates, with revenues of CN¥9.2b and statutory earnings per share of CN¥0.095. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Pou Sheng International (Holdings)'s five analysts are forecasting 2025 revenues to be CN¥17.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to climb 11% to CN¥0.069. Before this earnings report, the analysts had been forecasting revenues of CN¥17.1b and earnings per share (EPS) of CN¥0.096 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

See our latest analysis for Pou Sheng International (Holdings)

It might be a surprise to learn that the consensus price target was broadly unchanged at HK$1.03, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Pou Sheng International (Holdings) analyst has a price target of HK$2.86 per share, while the most pessimistic values it at HK$0.55. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 2.8% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 8.9% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. So while a broad number of companies are forecast to grow, unfortunately Pou Sheng International (Holdings) is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pou Sheng International (Holdings). On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at HK$1.03, 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 Pou Sheng International (Holdings) analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Pou Sheng International (Holdings) that we have uncovered.

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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.