Sun Hung Kai Properties Limited Just Beat Revenue Estimates By 7.0%

It's been a good week for Sun Hung Kai Properties Limited (HKG:16) shareholders, because the company has just released its latest annual results, and the shares gained 2.7% to HK$109. It was a pretty mixed result, with revenues beating expectations to hit HK$94b. Statutory earnings fell 4.1% short of analyst forecasts, reaching HK$7.39 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the eleven analysts covering Sun Hung Kai Properties provided consensus estimates of HK$85.9b revenue in 2027, which would reflect an uneasy 8.9% decline over the past 12 months. Statutory earnings per share are predicted to ascend 16% to HK$8.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$85.4b and earnings per share (EPS) of HK$8.66 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Sun Hung Kai Properties

There were no changes to revenue or earnings estimates or the price target of HK$141, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Sun Hung Kai Properties, with the most bullish analyst valuing it at HK$169 and the most bearish at HK$115 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 8.9% annualised decline to the end of 2027. That is a notable change from historical growth of 3.4% 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 1.7% per year. It's pretty clear that Sun Hung Kai Properties' revenues are expected to perform substantially 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sun Hung Kai Properties' revenue is expected to perform worse than the wider industry. The consensus price target held steady at HK$141, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sun Hung Kai Properties. Long-term earnings power is much more important than next year's profits. We have forecasts for Sun Hung Kai Properties going out to 2029, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Sun Hung Kai Properties that you should be aware of.

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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.