Sime Darby Property Berhad (KLSE:SIMEPROP) Annual Results: Here's What Analysts Are Forecasting For This Year

It's been a sad week for Sime Darby Property Berhad (KLSE:SIMEPROP), who've watched their investment drop 10% to RM1.40 in the week since the company reported its annual result. Revenues of RM4.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at RM0.074, missing estimates by 4.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Sime Darby Property Berhad

Following the latest results, Sime Darby Property Berhad's 13 analysts are now forecasting revenues of RM4.39b in 2025. This would be a credible 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to RM0.082. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM4.36b and earnings per share (EPS) of RM0.082 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of RM1.90, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sime Darby Property Berhad, with the most bullish analyst valuing it at RM2.40 and the most bearish at RM1.35 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sime Darby Property Berhad shareholders.

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. It's pretty clear that there is an expectation that Sime Darby Property Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sime Darby Property Berhad is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at RM1.90, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Sime Darby Property Berhad analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Sime Darby Property Berhad you should know about.

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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.