It's been a good week for China Resources Mixc Lifestyle Services Limited (HKG:1209) shareholders, because the company has just released its latest yearly results, and the shares gained 5.9% to HK$25.00. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥15b, statutory earnings beat expectations 2.6%, with China Resources Mixc Lifestyle Services reporting profits of CN¥1.28 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the 22 analysts covering China Resources Mixc Lifestyle Services are now predicting revenues of CN¥18.1b in 2024. If met, this would reflect a substantial 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 22% to CN¥1.56. In the lead-up to this report, the analysts had been modelling revenues of CN¥19.2b and earnings per share (EPS) of CN¥1.56 in 2024. 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.
The average price target was steady at HK$38.46even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values China Resources Mixc Lifestyle Services at HK$52.25 per share, while the most bearish prices it at HK$29.88. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of China Resources Mixc Lifestyle Services'historical trends, as the 23% annualised revenue growth to the end of 2024 is roughly in line with the 24% annual growth 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 revenues grow 6.1% per year. So although China Resources Mixc Lifestyle Services is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at HK$38.46, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for China Resources Mixc Lifestyle Services going out to 2026, and you can see them free on our platform here..
We also provide an overview of the China Resources Mixc Lifestyle Services Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.