Kingboard Laminates Holdings Limited Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Kingboard Laminates Holdings Limited (HKG:1888) filed its annual result this time last week. The early response was not positive, with shares down 2.1% to HK$9.36 in the past week. Statutory earnings per share fell badly short of expectations, coming in at HK$0.42, some 23% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at HK$19b. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the current consensus from Kingboard Laminates Holdings' dual analysts is for revenues of HK$21.6b in 2025. This would reflect a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 112% to HK$0.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$20.9b and earnings per share (EPS) of HK$0.84 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Kingboard Laminates Holdings

It will come as no surprise to learn that the analysts have increased their price target for Kingboard Laminates Holdings 28% to HK$11.75on the back of these upgrades.

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. One thing stands out from these estimates, which is that Kingboard Laminates Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 16% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.3% 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 13% per year. Not only are Kingboard Laminates Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kingboard Laminates Holdings following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Kingboard Laminates Holdings .

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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.