This Analyst Just Wrote A Brand New Outlook For Hiap Teck Venture Berhad's (KLSE:HIAPTEK) Business

Celebrations may be in order for Hiap Teck Venture Berhad (KLSE:HIAPTEK) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investor sentiment seems to be improving too, with the share price up 5.2% to RM0.30 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from Hiap Teck Venture Berhad's single analyst is for revenues of RM1.5b in 2022 which - if met - would reflect a solid 9.5% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to plummet 20% to RM0.088 in the same period. Previously, the analyst had been modelling revenues of RM1.1b and earnings per share (EPS) of RM0.076 in 2022. 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.

Check out our latest analysis for Hiap Teck Venture Berhad

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Hiap Teck Venture Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 1.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hiap Teck Venture Berhad is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at Hiap Teck Venture Berhad.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential concerns with Hiap Teck Venture Berhad, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 other concerns we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.