Yanlord Land Group Limited Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

Yanlord Land Group Limited (SGX:Z25) shareholders are probably feeling a little disappointed, since its shares fell 8.9% to S$0.46 in the week after its latest yearly results. Revenues came in 25% better than analyst models predicted, at CN¥43b. The company was unable to deliver a profit however, with statutory losses of CN¥0.48 well below the profits that the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Yanlord Land Group

Following the recent earnings report, the consensus from two analysts covering Yanlord Land Group is for revenues of CN¥29.1b in 2024. This implies a painful 33% decline in revenue compared to the last 12 months. Yanlord Land Group is also expected to turn profitable, with statutory earnings of CN¥0.48 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥31.7b and earnings per share (EPS) of CN¥0.70 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The consensus price target fell 16% to S$0.58, with the weaker earnings outlook clearly leading valuation estimates.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 33% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.09% annually for the foreseeable future. The forecasts do look bearish for Yanlord Land Group, since they're expecting it to shrink faster than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Yanlord Land Group. Unfortunately they also downgraded their revenue estimates, and our analysts estimates suggest that Yanlord Land Group is still expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Yanlord Land Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Yanlord Land Group that you need to take into consideration.

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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.