Earnings Beat: Lim Seong Hai Capital Berhad Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Lim Seong Hai Capital Berhad (KLSE:LSH) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at RM461m, statutory earnings beat expectations by a notable 18%, coming in at RM0.13 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lim Seong Hai Capital Berhad after the latest results.

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Taking into account the latest results, the most recent consensus for Lim Seong Hai Capital Berhad from five analysts is for revenues of RM600.4m in 2026. If met, it would imply a sizeable 30% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 30% to RM0.16. In the lead-up to this report, the analysts had been modelling revenues of RM571.5m and earnings per share (EPS) of RM0.14 in 2026. So it seems there's been a definite increase in optimism about Lim Seong Hai Capital Berhad's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

See our latest analysis for Lim Seong Hai Capital Berhad

It will come as no surprise to learn that the analysts have increased their price target for Lim Seong Hai Capital Berhad 25% to RM2.04on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Lim Seong Hai Capital Berhad, with the most bullish analyst valuing it at RM3.40 and the most bearish at RM1.06 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lim Seong Hai Capital Berhad's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Lim Seong Hai Capital Berhad's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 30% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% per year. Even after the forecast slowdown in growth, it seems obvious that Lim Seong Hai Capital Berhad is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lim Seong Hai Capital Berhad's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Lim Seong Hai Capital Berhad going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Lim Seong Hai Capital Berhad (1 is potentially serious!) 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.