These Analysts Think Malaysia Marine and Heavy Engineering Holdings Berhad's (KLSE:MHB) Sales Are Under Threat

The latest analyst coverage could presage a bad day for Malaysia Marine and Heavy Engineering Holdings Berhad (KLSE:MHB), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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Following the latest downgrade, the five analysts covering Malaysia Marine and Heavy Engineering Holdings Berhad provided consensus estimates of RM2.5b revenue in 2025, which would reflect a measurable 3.3% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM3.2b in 2025. It looks like forecasts have become a fair bit less optimistic on Malaysia Marine and Heavy Engineering Holdings Berhad, given the sizeable cut to revenue estimates.

See our latest analysis for Malaysia Marine and Heavy Engineering Holdings Berhad

There was no particular change to the consensus price target of RM0.57, with Malaysia Marine and Heavy Engineering Holdings Berhad's latest outlook seemingly not enough to result in a change of valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 3.3% by the end of 2025. This indicates a significant reduction from annual growth of 23% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.03% annually for the foreseeable future. The forecasts do look bearish for Malaysia Marine and Heavy Engineering Holdings Berhad, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. The analysts also expect revenues to shrink faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Malaysia Marine and Heavy Engineering Holdings Berhad after today.

Unsatisfied? At least one of Malaysia Marine and Heavy Engineering Holdings Berhad's five analysts has provided estimates out to 2027, which can be seen for free on our platform here.

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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.