Here's What Analysts Are Forecasting For SUNeVision Holdings Ltd. (HKG:1686) After Its Full-Year Results

It's been a good week for SUNeVision Holdings Ltd. (HKG:1686) shareholders, because the company has just released its latest annual results, and the shares gained 6.4% to HK$3.32. Results look mixed - while revenue fell marginally short of analyst estimates at HK$2.7b, statutory earnings were in line with expectations, at HK$0.22 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for SUNeVision Holdings

Taking into account the latest results, the current consensus from SUNeVision Holdings' five analysts is for revenues of HK$3.16b in 2025. This would reflect a decent 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.9% to HK$0.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$3.29b and earnings per share (EPS) of HK$0.26 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the HK$4.22 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 SUNeVision Holdings analyst has a price target of HK$5.80 per share, while the most pessimistic values it at HK$2.60. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting SUNeVision Holdings' growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SUNeVision Holdings 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at HK$4.22, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for SUNeVision Holdings going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for SUNeVision Holdings that you should be aware of.

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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.