Hap Seng Plantations Holdings Berhad Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Hap Seng Plantations Holdings Berhad (KLSE:HSPLANT) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Hap Seng Plantations Holdings Berhad reported RM668m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM0.11 beat expectations, being 5.9% higher than what the analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Hap Seng Plantations Holdings Berhad

After the latest results, the nine analysts covering Hap Seng Plantations Holdings Berhad are now predicting revenues of RM696.1m in 2024. If met, this would reflect a modest 4.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 30% to RM0.15. In the lead-up to this report, the analysts had been modelling revenues of RM704.3m and earnings per share (EPS) of RM0.14 in 2024. So the consensus seems to have become somewhat more optimistic on Hap Seng Plantations Holdings Berhad's earnings potential following these results.

The consensus price target was unchanged at RM2.03, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Hap Seng Plantations Holdings Berhad analyst has a price target of RM2.30 per share, while the most pessimistic values it at RM1.75. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We would highlight that Hap Seng Plantations Holdings Berhad's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Compare this to the 79 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.8% per year. So it's pretty clear that, while Hap Seng Plantations Holdings Berhad's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hap Seng Plantations Holdings Berhad's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Hap Seng Plantations Holdings Berhad. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hap Seng Plantations Holdings Berhad going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Hap Seng Plantations Holdings Berhad that 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.