Wasion Holdings Limited (HKG:3393) just released its yearly report and things are looking bullish. Wasion Holdings beat earnings, with revenues hitting CN¥7.3b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wasion Holdings after the latest results.
Taking into account the latest results, the most recent consensus for Wasion Holdings from two analysts is for revenues of CN¥9.12b in 2024. If met, it would imply a substantial 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 42% to CN¥0.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥8.63b and earnings per share (EPS) of CN¥0.61 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for Wasion Holdings 15% to HK$5.62on the back of these upgrades.
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. It's clear from the latest estimates that Wasion Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Wasion Holdings is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Wasion Holdings following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Wasion Holdings going out as far as 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Wasion Holdings 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.