The Hongkong Land Holdings Limited (SGX:H78) Analysts Have Been Trimming Their Sales Forecasts

The latest analyst coverage could presage a bad day for Hongkong Land Holdings Limited (SGX:H78), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the current consensus, from the eleven analysts covering Hongkong Land Holdings, is for revenues of US$2.0b in 2024, which would reflect a measurable 4.7% reduction in Hongkong Land Holdings' sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.9b of revenue in 2024. So there's been a pretty clear uptick in analyst sentiment after this consensus update, given the modest lift to this year's revenue forecasts.

See our latest analysis for Hongkong Land Holdings

There was no particular change to the consensus price target of US$3.57, with Hongkong Land Holdings' latest outlook seemingly not enough to result in a change of valuation.

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. One more thing stood out to us about these estimates, and it's the idea that Hongkong Land Holdings' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 9.1% to the end of 2024. This tops off a historical decline of 1.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.5% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Hongkong Land Holdings to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Hongkong Land Holdings after today.

Want to learn more? At least one of Hongkong Land Holdings' eleven analysts has provided estimates out to 2026, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com