Analyst Estimates: Here's What Brokers Think Of Heiwa Real Estate Co., Ltd. (TSE:8803) After Its Annual Report

Last week saw the newest yearly earnings release from Heiwa Real Estate Co., Ltd. (TSE:8803), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of JP¥42b were in line with what the analysts predicted, Heiwa Real Estate surprised by delivering a statutory profit of JP¥283 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Heiwa Real Estate after the latest results.

We've discovered 3 warning signs about Heiwa Real Estate. View them for free.

After the latest results, the three analysts covering Heiwa Real Estate are now predicting revenues of JP¥48.1b in 2026. If met, this would reflect a meaningful 14% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥291, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥46.4b and earnings per share (EPS) of JP¥286 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

View our latest analysis for Heiwa Real Estate

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥4,788, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Heiwa Real Estate analyst has a price target of JP¥5,015 per share, while the most pessimistic values it at JP¥4,400. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 Heiwa Real Estate is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2026. If achieved, this would be a much better result than the 2.4% 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 4.1% per year. So it looks like Heiwa Real Estate is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Heiwa Real Estate. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Heiwa Real Estate analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Heiwa Real Estate (2 don't sit too well with us) 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.