One Analyst Just Shaved Their Tiong Woon Corporation Holding Ltd (SGX:BQM) Forecasts Dramatically

One thing we could say about the covering analyst on Tiong Woon Corporation Holding Ltd (SGX:BQM) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for Tiong Woon Corporation Holding from its sole analyst is for revenues of S$153m in 2025 which, if met, would be an okay 6.9% increase on its sales over the past 12 months. Statutory earnings per share are presumed to increase 7.0% to S$0.084. Before this latest update, the analyst had been forecasting revenues of S$172m and earnings per share (EPS) of S$0.10 in 2025. Indeed, we can see that the analyst is a lot more bearish about Tiong Woon Corporation Holding's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Tiong Woon Corporation Holding

Despite the cuts to forecast earnings, there was no real change to the S$0.87 price target, showing that the analyst don't think the changes have a meaningful impact on its intrinsic value.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analyst is definitely expecting Tiong Woon Corporation Holding's growth to accelerate, with the forecast 6.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. So it's clear that despite the acceleration in growth, Tiong Woon Corporation Holding is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Tiong Woon Corporation Holding.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.