Results: Asia Cement Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for Asia Cement Corporation (TWSE:1102) shareholders, because the company has just released its latest full-year results, and the shares gained 2.2% to NT$45.05. Revenues were NT$76b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of NT$3.85 were also better than expected, beating analyst predictions by 17%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Asia Cement

Taking into account the latest results, the current consensus, from the six analysts covering Asia Cement, is for revenues of NT$74.0b in 2025. This implies a perceptible 3.1% reduction in Asia Cement's revenue over the past 12 months. Statutory earnings per share are expected to descend 11% to NT$3.23 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$79.8b and earnings per share (EPS) of NT$3.18 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

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The consensus has reconfirmed its price target of NT$42.98, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Asia Cement's market value. 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. The most optimistic Asia Cement analyst has a price target of NT$51.00 per share, while the most pessimistic values it at NT$32.90. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. One more thing stood out to us about these estimates, and it's the idea that Asia Cement's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 3.1% to the end of 2025. This tops off a historical decline of 1.2% 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 3.7% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Asia Cement to suffer worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings are more important to the intrinsic value of the business. 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 in mind, we wouldn't be too quick to come to a conclusion on Asia Cement. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Asia Cement going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Asia Cement has 2 warning signs (and 1 which is potentially serious) we think you should know about.

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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.