Uchi Technologies Berhad (KLSE:UCHITEC) Just Reported And Analysts Have Been Cutting Their Estimates

Uchi Technologies Berhad (KLSE:UCHITEC) shareholders are probably feeling a little disappointed, since its shares fell 5.3% to RM3.75 in the week after its latest yearly results. It was a credible result overall, with revenues of RM222m and statutory earnings per share of RM0.24 both in line with analyst estimates, showing that Uchi Technologies Berhad is executing in line with 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.

View our latest analysis for Uchi Technologies Berhad

Taking into account the latest results, the four analysts covering Uchi Technologies Berhad provided consensus estimates of RM212.4m revenue in 2025, which would reflect a discernible 4.4% decline over the past 12 months. Statutory earnings per share are expected to reduce 7.0% to RM0.23 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM235.8m and earnings per share (EPS) of RM0.26 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

The analysts made no major changes to their price target of RM3.69, suggesting the downgrades are not expected to have a long-term impact on Uchi Technologies Berhad's valuation. 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 Uchi Technologies Berhad analyst has a price target of RM4.30 per share, while the most pessimistic values it at RM3.38. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Uchi Technologies Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 4.4% annualised decline to the end of 2025. That is a notable change from historical growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Uchi Technologies Berhad is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Uchi Technologies Berhad analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Uchi Technologies Berhad that we have uncovered.

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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.