News Flash: Analysts Just Made A Captivating Upgrade To Their Value Partners Group Limited (HKG:806) Forecasts
Celebrations may be in order for Value Partners Group Limited (HKG:806) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
Following the latest upgrade, the two analysts covering Value Partners Group provided consensus estimates of HK$944m revenue in 2026, which would reflect a disturbing 32% decline on its sales over the past 12 months. Statutory earnings per share are supposed to shrink 5.7% to HK$0.31 in the same period. Previously, the analysts had been modelling revenues of HK$786m and earnings per share (EPS) of HK$0.29 in 2026. Sentiment certainly seems to have improved in recent times, with a considerable lift to revenue and a small increase to earnings per share estimates.
See our latest analysis for Value Partners Group
Despite these upgrades, the analysts have not made any major changes to their price target of HK$3.15, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Value Partners Group's past performance and to peers in the same industry. Over the past five years, revenues have declined around 18% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 32% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.2% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Value Partners Group to suffer worse than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Value Partners Group.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Value Partners Group going out as far as 2027, and you can see them free on our platform here.
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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.