Need To Know: One Analyst Is Much More Bullish On Hong Leong Industries Berhad (KLSE:HLIND) Revenues

Hong Leong Industries Berhad (KLSE:HLIND) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the upgrade, the most recent consensus for Hong Leong Industries Berhad from its single analyst is for revenues of RM3.9b in 2026 which, if met, would be an okay 7.0% increase on its sales over the past 12 months. Statutory earnings per share are forecast to be RM1.57, approximately in line with the last 12 months. Before this latest update, the analyst had been forecasting revenues of RM3.5b and earnings per share (EPS) of RM1.47 in 2026. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a modest lift to earnings per share estimates.

View our latest analysis for Hong Leong Industries Berhad

With these upgrades, we're not surprised to see that the analyst has lifted their price target 6.8% to RM18.90 per share.

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. It's pretty clear that there is an expectation that Hong Leong Industries Berhad's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.0% growth on an annualised basis. This is compared to a historical growth rate of 9.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.4% annually. So it's pretty clear that, while Hong Leong Industries Berhad's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Hong Leong Industries Berhad.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Hong Leong Industries Berhad going out as far as 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.