Analysts Just Published A Bright New Outlook For Hap Seng Plantations Holdings Berhad's (KLSE:HSPLANT)

By
Simply Wall St
Published
May 25, 2021
KLSE:HSPLANT
Source: Shutterstock

Hap Seng Plantations Holdings Berhad (KLSE:HSPLANT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the latest consensus from Hap Seng Plantations Holdings Berhad's six analysts is for revenues of RM566m in 2021, which would reflect a notable 16% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to sink 16% to RM0.13 in the same period. Previously, the analysts had been modelling revenues of RM511m and earnings per share (EPS) of RM0.096 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Hap Seng Plantations Holdings Berhad

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KLSE:HSPLANT Earnings and Revenue Growth May 25th 2021

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. One thing stands out from these estimates, which is that Hap Seng Plantations Holdings Berhad 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 2021. If achieved, this would be a much better result than the 3.8% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.4% annually. Not only are Hap Seng Plantations Holdings Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Hap Seng Plantations Holdings Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Hap Seng Plantations Holdings Berhad going out to 2023, and you can see them 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 that insiders are buying.

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