Hap Seng Plantations Holdings Berhad Just Recorded A 47% EPS Beat: Here's What Analysts Are Forecasting Next

Hap Seng Plantations Holdings Berhad (KLSE:HSPLANT) just released its latest yearly results and things are looking bullish. The company beat forecasts, with revenue of RM752m, some 2.8% above estimates, and statutory earnings per share (EPS) coming in at RM0.26, 47% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Hap Seng Plantations Holdings Berhad

Taking into account the latest results, the most recent consensus for Hap Seng Plantations Holdings Berhad from seven analysts is for revenues of RM773.3m in 2025. If met, it would imply an okay 2.8% increase on its revenue over the past 12 months. Statutory earnings per share are expected to tumble 28% to RM0.18 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM760.1m and earnings per share (EPS) of RM0.18 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at RM2.39, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Hap Seng Plantations Holdings Berhad analyst has a price target of RM2.70 per share, while the most pessimistic values it at RM2.25. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Hap Seng Plantations Holdings Berhad's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hap Seng Plantations Holdings Berhad is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hap Seng Plantations Holdings Berhad's revenue is expected to perform worse than the wider 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Hap Seng Plantations Holdings Berhad going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Hap Seng Plantations Holdings Berhad (including 1 which doesn't sit too well with us) .

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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.