Need To Know: Analysts Are Much More Bullish On Kimlun Corporation Berhad (KLSE:KIMLUN)

Kimlun Corporation Berhad (KLSE:KIMLUN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investor sentiment seems to be improving too, with the share price up 5.5% to RM1.05 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

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Following the latest upgrade, the twin analysts covering Kimlun Corporation Berhad provided consensus estimates of RM1.4b revenue in 2025, which would reflect a measurable 2.7% decline on its sales over the past 12 months. Statutory earnings per share are supposed to crater 26% to RM0.16 in the same period. Prior to this update, the analysts had been forecasting revenues of RM1.2b and earnings per share (EPS) of RM0.12 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Kimlun Corporation Berhad

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of RM1.29, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. We would highlight that sales are expected to reverse, with a forecast 2.7% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 4.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Kimlun Corporation Berhad is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Kimlun Corporation Berhad could be a good candidate for more research.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.